Vice chairman of Berkshire Hathaway, Charlie Munger has indicated that the recession that has been displayed because of the Coronavirus; has had drastic effect on the US and global economy as a whole.
Vice chair Munger has indicated executives from top S&P 500 companies are not seeking a government bailout aka “government intervention”, because in his opinion they are “too frozen” to do so. He has spoken that the airline industry has done very little to bring increase scrutiny on where they lie ahead of their financial stats and balance sheets. -SB
Finance Ministers across the Eurozone spectrum agreed to extend Greece’s bailout. This allows Greece to restructure their financial banking and regulations that the country had in place. This also helps Greece in that they now do not have to put in place capital controls.
Greece Finance Minister Yanis Varoufakis, indicated they will institute new regulations and have to crack down on corruption and business entities evading taxes, while also trying to balance the Greek annual budget.
The Eurozone’s has stated they will impose the bailout extention to Greece for an extra 4-5 months, so Greece can have the necessary time to restructure their financial banking.
The forex market took serious losses because of the move by the Swiss Bank to not rationalize the Swiss franc per the Euro.. This sent a shock wave to the forex markets. Forex brokers and banks took some serious drawdowns….
Citigroup predicted it lost over $150 million USD to $200 million USD, in the forex markets because the decision presented by the Swiss National Bank (SNB). Well known broker FXCM received a huge buyout by Leucadia National (LUK). Leucadia invested $300 million in FXCM to save the forex firm.
This incident is being regarded as one of the major blows to the financial markets in a long time, especially so early in the new year of 2015.