Sorry about the late update – I watched the Quantum of Solace. Not recommended.
News – Between The Hedges
Markets – Between The Hedges
Recap – Global Macro Trading
The Closer – alphaville / FT
Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
FX Options Analytics – Saxo Bank
EURO CRISIS
Spanish 10 year yields and Italian 10 year yields are still both better on the day. They have managed to continue the gains sparked by rumors of ECB renewing the SMP purchases of bonds of these countries.
three main scenarios: 1) United States of Europe 2) two- or three-tiered Europe 3) more decentralized Europe: We can expect further European turmoil – from banks, sovereign debt, and social unrest in response to even modest welfare-state rollbacks – and clashing visions, within and among countries, concerning the desirability of deeper European integration.
Merkel Comes Around to Euro-Zone Firewall Boost – Spiegel
German Chancellor Angela Merkel and her Finance Minister Wolfgang Schäuble have long opposed a further expansion of the euro-zone bailout fund, which would expose German taxpayers to billions in new liabilities. But SPIEGEL has learned that Merkel has given up her opposition and will likely agree to strengthen the firewall later this week.
Five Overlooked Euro Zone Developments – Credit Writedowns
1) ECB gave permission for national central banks not to accept bank bonds from certain countries 2) ECB margin calls 3) budget deficits hidden by unpaid bills 4) bank deposits falling in certain countries 5) Portugal fiscally lot worse.
A three-headed beast – Free exchange / The Economist (summary of the below paper)
The Euro’s Three Crises – Brookings (pdf)
There is a banking crisis – where banks are undercapitalized and have faced liquidity problems. There is a sovereign debt crisis – where a number of countries have faced rising bond yields and challenges funding themselves. Lastly, there is a growth crisis – with both a low overall level of growth in the euro area and an unequal distribution across countries. Crucially, these crises connect to one another.
ECB Shoots First, Conducts Analysis Of LTRO Inflationary Impact Later – ZH
FED: TO QE, OR NOT TO QE?
Bernanke Puzzled Over Jobs, Cites Okun's Law; Six Things Bernanke is Clueless About – Mish’s
Fed's Easing Efforts Having Less And Less Impact As Macro Seasonals Turn Negative – ZH
Did Ben Unleash The "New" QE? Not So Fast Says JP Morgan – ZH
Bernanke’s Comments: Big Difference Between ‘Continued’ & ‘Additional’ – MarketBeat / WSJ
STOCK MARKET VIEWS
Forget Money On The Sidelines, Institutional Investors Are All-In – ZH
The Economic Surprise Index is now trending down – Sober Look
An über-simple guide to finding value stocks – Saxo Bank
Hussman: Beware profit margin mean reversion – Pragmatic Capitalism
OTHER
Book excerpt: “Backstage Wall Street”, by Josh Brown – alphaville / FT
If you liked it, buy it on Amazon!
If you liked it, buy it on Amazon!
Equity derivatives senior salesman: 'You can't bully a hedge fund' – The Guardian
Joris Luyendijk hears from an equity derivatives salesman about negotiating the relationship between client and trader
The Problems of Interpreting Data – Deep Thoughts and Silliness
OFF-TOPIC
James Cameron Completes Record-Breaking Mariana Trench Dive – National Geographic
Evidence for Flowing Water on Mars Grows Stronger – SciAm