Austerity

As cities lay off police, frustrated neighborhoods turn to private cops

"After people in Oakland’s wealthy enclaves like Oakmore or Piedmont Pines head to work, security companies take over, cruising the quiet streets to ward off burglars looking to take advantage of unattended homes. Long known for patrolling shopping malls and gated communities, private security firms are beginning to spread into city streets. While private security has long been contracted by homeowners associations and commercial districts, the trend of groups of neighbors pooling money to contract private security for their streets is something new." Continue reading →

Continue ReadingAs cities lay off police, frustrated neighborhoods turn to private cops

Europeans slammed by austerity measures now enraged by political corruption

"A wave of corrosive political scandals at a time of economic woe is exacerbating the outrage of European citizens, who are channelling resentment into street protests or at the polls. Italy, Spain and Greece have all been hit by fraud or graft cases allegedly involving the top brass. France joined the ranks of scandal-hit nations this week after its former budget minister was charged with tax fraud. In France, outrage over the budget minister scandal has yet to erupt into popular protests. But in some countries of southern Europe, which for several years have been hit by austerity measures more severe than in France, fury has coiled into potent blowback." Continue reading →

Continue ReadingEuropeans slammed by austerity measures now enraged by political corruption

Italian-Switzerland border checks strike gold

"Italian finance police had a lucky find on Easter Sunday during a routine check of a family car crossing into Switzerland: they discovered gold ingots worth about €4.5 million concealed in false compartments. The car was driven by a 53-year-old Italian resident of the Swiss canton of Ticino, described by the police as the legal representative of a Swiss company. He was travelling with his wife and three children, apparently going for an Easter trip. The man was immediately charged with money laundering. The ingots and the car were seized. There has been an upsurge in the smuggling of gold from Italy to Switzerland in the past few months." Continue reading →

Continue ReadingItalian-Switzerland border checks strike gold

Irish county officials vote to allow some citizens to drink and drive

"County officials in southwest Ireland have voted to loosen drunk driving restrictions for certain older, rural constituents. The BBC reported that county councilors in Kerry County, Ireland have backed legislation that would allow police to issue citations exempting certain drivers from normal restrictions on driving under the influence. Councillor Danny Healy-Rae, the motion’s sponsor, said the law is intended to apply to 'older people' who 'are being isolated now at home, and a lot of them falling into depression.'" Continue reading →

Continue ReadingIrish county officials vote to allow some citizens to drink and drive

The Next Domino: Slovenia Government Bond Yields Spike

"The country, another relative newcomer to the euro, is struggling with its own banking problems. The IMF expects Slovenia will have to recapitalize its three largest banks this year, which could cost a billion euros. That will increase Slovenia's budget deficit, which is bad news because the country is already having trouble selling sovereign bonds on the open market in order to finance the government. So, the question is whether Slovenia will be the next EU member state to need a bailout. Slovenia's top central banker, Marjo Kranjec – who also sits on the ECB Governing Council – says it's not going to happen." Continue reading →

Continue ReadingThe Next Domino: Slovenia Government Bond Yields Spike

Jittery Spaniards Seek Safety in Bitcoins

"Since Sunday, a trio of Bitcoin apps have soared upSpain’s download charts, coinciding with news that cash-strapped Cyprus was planning to raid domestic savings accounts to pay off a $13 billion bailout tab. Fearing contagion on the other end of the Mediterranean, some Spaniards are apparently looking for cover in an experimental digital currency. That Spaniards would consider converting a portion of their dwindling savings into a peer-to-peer currency vulnerable to wild price fluctuations and the odd thieving Trojan speaks volumes about banking confidence in some parts of Europe." Continue reading →

Continue ReadingJittery Spaniards Seek Safety in Bitcoins

Europe Deploys Next Generation Speed Cameras

"Struggling European economies are investing big money in stealth speed camera technology designed to mail tickets to motorists who have no way of knowing they are being watched. Eurozone economies have been shrinking, with both France and Spain under heightened scrutiny for failure to meet deficit reduction targets set by the European Union. Ratings agency Standard and Poor's called the situation in Spain and France 'socially explosive' in a statement to Neue Osnabrucker Zeitung. Both countries are now deploying the next generation of speed cameras." Continue reading →

Continue ReadingEurope Deploys Next Generation Speed Cameras

The Seeds of War Have Been Sown

"Unless the Troika backs off the weaker, heavily-indebted countries, which is not likely, yes, I believe Europe is headed toward massive civil unrest and war. Vladimir Putin is up in arms over the crisis in Cyprus. He will not stand idly by while Russian money is at risk in Europe. Keep in mind that Russia largely controls the European energy sector. If Putin feels Russian financial losses in Europe are unjust, I don’t doubt for one minute that he would threaten to retaliate by 'turning the lights out' in Europe. War and massive civil unrest in many parts of the world is a very real threat. And it’s already starting to impact the financial markets." Continue reading →

Continue ReadingThe Seeds of War Have Been Sown

Cyprus, lenders reach bailout deal; 40% deposit tax agreed

"Cyprus and its institutional lenders have reached a bailout deal, according to reports citing European Union officials. As part of the agreement the country will impose a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros ($129,760) in their accounts, Agence France Presse reported. The deal will now be put to the Eurogroup in Brussels for approval, the reports said. The weekend saw tense meetings between Cyprus and the Troika -- the European Commission, the European Central Bank and the International Monetary Fund -- to reach a deal before a Monday evening funding deadline." Continue reading →

Continue ReadingCyprus, lenders reach bailout deal; 40% deposit tax agreed

Two biggest Cyprus banks limit ATM withdrawals to reduce bank runs

"The two main banks at the centre of Cyprus’s financial crisis further slashed the daily cash withdrawal limits from ATM machines on Sunday, state media reported. With queues growing outside cash machines across the island, Laiki (Popular) Bank cut maximum withdrawals at ATMs to 100 euros a day and the Bank of Cyprus reduced its limit to 120 euros a day, the Cyprus News Agency said." Continue reading →

Continue ReadingTwo biggest Cyprus banks limit ATM withdrawals to reduce bank runs