12th Jan - Livermore!

Jesse Livermore (1877 - 1940)

The auction went ok, but as the maturity was short, this was quite expected. ECB (and BoE) met and did nothing, as things are somewhat more stabile now, with LTRO and all,  but Monti stated there are still downside risks - so nothing much, the obvious was said and vigilance and possibility of further action was signaled. Note the book link at the bottom of the post.

- MoreLiver

To the links:

News 12-Jan evening – BTH

Recap 12-Jan – GMT

FX option vols – Saxo

TV: Bloomberg, CNBC, BBC

Debt crisis: live – The Telegraph

Europe Crisis Tracker – WSJ

EURO CRISIS

Recapturing the losses of the crisis – alphaville / FT

Some banks made such awful losses during the crisis they opted to store the losses on balance sheets for a sunny day when they started making profits again.

Monti and Merkel: Financial tax must cover whole EU – euobserver.com

and Sarkozy wants an agreement before elections, or it would implement it alone.

PIIGS et al

Market Implies Greek Devaluation To 1530 Drachma Versus Euro – ZH

MSCI analysis: Greeks entered the EMU in January 2001 at 340.75 Drachma to the Euro, the current market is pricing in a massive devaluation to around 1530 Drachma to the Euro.

Debunking the 7 per cent threshold – alphaville / FT

SocGen: Any such threshold yield would need to take into account countryspecific fundamentals, and the characteristics of debt issued discussed above, including its duration and its composition.

Italian yield curve steepens as bill rate collapses – Sober Look

In spite of this impressive performance, a great deal of risk is still priced into the longer-term paper.  The yield curve has gone from "inverted" to "extremely steep" as the probability of default shifts further out in time

Art Cashin Explains Why The One Key Indicator That Matters For Italy Is Flashing Red – ZH
The immigrants still come to their way station of Patras (hope still blooms). But now, after a couple of weeks in Greece, they are trying to hop ships going the other way.

Playing Chicken And Rooster With Hungary – A Fistful of Euros

…who will blink first. Hungary may blink since the country’s leaders may not wish to find themselves outside the EU and forced into default. Or alternately, some of Orban’s advisers may already accept this scenario as an inevitability, and welcome default as the only way of getting to grips with the forex debt problem.

ECB

Important sidebar about central banking – Mosler Economics

Email from Nomura’s JJ Lando: Whatever money the ECB creates winds up on deposit in its member banks, whether or not it is ‘used’ to buy sovereign debt, ‘used’ to make loans, or not used at all.

ECB meeting press conference statement – ECB

ECB Meeting: ECB prefers to wait and see – Danske (pdf)

E.C.B. Promises Continued Support for Europe Banks – NYT

Cautious on the economy, happy with liquidity – Free exchange / The Economist

European Central Bank in Graphics – Reuters

Collection of charts – hat tip to The Trader.

OTHER

EMEA Weekly – Danske (pdf)

The Perils of 2012 – Joseph E. Stiglitz / Project Syndicate

Global economic rebalancing is likely to accelerate, almost inevitably giving rise to political tensions.

The Straits of America – Nouriel Roubini / Project Syndicate

Given all of these large and small risks, businesses, consumers, and investors have a strong incentive to wait and do little. The problem, of course, is that when enough people wait and don’t act, they heighten the very risks that they are trying to avoid.

Financial sector regulation for growth, equity and stability – BIS

With emerging markets perspective, full conference proceedings from 15-16 Nov

DIVERSION

Artificial intelligence and robotics, the next disruptive force? – Saxo

How Facebook’s Expected $100 Billion IPO Breaks Down – Mashable

Nice infographic

Banksters and Gangsters with Eliot Spitzer – The Big Picture

Reminiscences of a Stock Operator – trading-naked.com (pdf)

Full book in pdf format.