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Carry Trade Collapse: Bankers Tricks Destroying Eastern Eurpoean Economics

03 Jan

The ECB and IMF warn Hungary not to change rules of how they deal with the devestating impact of the Swiss Frank based mortgages as the carry trade slams mortgages into hyperdrive in Hungary.

While most Americans have not had this experience or understanding of it on a personal level, the American banks have, of course had a serious taste of the problem – (see the latest news on MF Global for instance – )

 

Hungary Warned Against New Laws that Violate European Pacts

Late on Wednesday, Standard & Poor’s issued Hungary’s second credit rating downgrade to ‘junk’ in the last month, citing center-right government’s unpredictable policies and renewed meddling with the independence of the central bank. Moody’s also cut Hungary’s debt to junk grade last month.

Hot Feature: U.S. Economy Grew Less Than Previously Estimated in Third Quarter

Hungary’s downgrades heightened the risk of a full-blown market crisis, and investors are waiting anxiously to see whether they will push the country to seek an international aid deal, or whether they will conversely see Hungary move further away from such a deal.

 

Read the full story here

 

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