The following excellent article was written by  Dr. Constantin Gurdgiev and one can only wonder why the current Irish Government  has not called upon this man’s expertises .With the likes of this man’s reality grasp we should have him and other qualified heavyweights batting for us in Berlin and we should leave the tea boy’s like Noonan and Kenny at home !

Machholz

By Dr. Constantin Gurdgiev

IMF published Global Financial Stability Report update for June 2012, titled “Intense Financial Risks: Time for Action”

• Sovereign yields in southern Europe have risen sharply amid further erosion of the investor base.
• Elevated funding and market pressures pose risks of further cuts in peripheral euro area credit.
• The measures agreed at the recent European Union (EU) leaders’ summit provide significant steps to address the immediate crisis. Aside from supportive monetary and liquidity policies, the timely implementation of the recently agreed measures, together with further progress on banking and fiscal unions, must be a priority.
• Uncertainties about the asset quality of banks’ balance sheets must be resolved quickly, with capital injections and restructurings where needed.
• Growth prospects in other advanced countries and emerging markets have also weakened, leaving them less able to deal with spillovers from the euro area crisis or to address their own home-grown fiscal and financial vulnerabilities.
• Uncertainties on the fiscal outlook and federal debt ceiling in the United States present a latent risk to financial stability.”

• Market conditions worsened significantly in May and June, with measures of financial market stress reverting to, and in some cases surpassing, the levels seen during the worst period in November last year.  (see Figure 1)

full article at source: http://trueeconomics.blogspot.ie/2012/07/1672012-gfsr-july-2012-more-alarm-bells.html