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Saturday, August 27

27th Aug - Weekend Readings


EURO CRISIS
Greece won't proceed with bond-swap deal if private participation falls below 90% participation rate.
Greek asset sweating – alphaville FT

“Where appropriate, a collateral arrangement will be put in place so as to cover the risk arising to euro area member states.”

A contact in Finnish finance minister Jutta Urpilainen's office, speaking on condition of anonymity, told EUobserver on Friday (26 August): "The solution with Greece that we had last week is not valid anymore but negotiations are ongoing for another solution."

Merril Lynch: Eurobonds do not work, unless all sov debt is swapped, and only with full fiscal union.
What price Europe? – alphaville FT



ECB’s letters to Italian and Spanish leaders, then after austerity measures bond purchases. Greenmail?

ECB extends swap line agreement with BoE – centralbanking.com


This week’s selected articles from the German magazine Der Spiegel.


FINANCIAL CRISIS
“There are a lot of opportunities out there, and one shouldn’t complain, unless you don’t have good health”. Irving Kahn started as a stock analyst and brokerage clerk in 1928, 23 years old

Deleveraging: no growth in consumer spending: no corporate investments, no employment.
The Heart of the Matter – The Big Picture

WP from Netherland’s central bank: CDS prices point to risk transfer from financial to sovereign sector

Breakdown of component contributions to growth


FED / JACKSON HOLE
Bernanke’s speech

Other papers and lectures presented, more to come during weekend in this address

“dissonance between Mr Bernanke’s focus and tone, and the palpable sense of nervousness amongst the Jackson Hole attendees. The mood in the meeting’s corridors is grim,”
Passing the batonFree exchange The Economist

PIMCO CIO comments

Is Bernanke bluffing?



OTHER
One of the more interesting weekly market newsletters out there
(scribd) Things that make you go hmmm… - Grant Williams

Two lists of bullish and bearish factors
Weekly Bull/Bear Recap: August 22-26, 2011 – Rational Capitalist Speculator

Blackrock has filed to become an index provider. Before industry used and paid for established indices (Dow, S&P etc.). If this trend takes off, investors get more diversity and the unintended consequences of index additions mitigate.

Has a link to the pdf Review of Futures Markets vol 19, with a HFT critical piece from Themis Trading

Arvind Subramian’s 14-page pdf in Sep/Oct issue from Foreign Affairs

Contrary to assumptions, Saudi Arabia is “an economic basket case waiting to happen”.

Never a dull article from Kay: “Economists – in government agencies as well as universities – were obsessively playing Grand Theft Auto while the world around them was falling apart.”

Long-term charts


DIVERSION

Tablet computers
Difference Engine: Reality dawns – Babbage The Economist

You have to have $100m liquid after the purchase price



Also Steve Jobs interview from Playboy 1985.