Summary: eurosclerosis, debt ceiling overhang continue, lots of regulatory news. Artemis vol report today's most interesting link.
EURO CRISIS
Shows PIIGS exposure breakdown by country and quarterly evolution
Banking Sector Exposure to Euro Peripherals – The Trader
Larry Summers interview
FINANCIAL CRISIS
A Reading List for Following the Debt Ceiling Drama - ProPublica
Royal Bank of Canada’s report is pessimistic
Demographics and destiny, US housing edition – Alphaville FT
Now that there is no risk-free anymore, ideas for purchasing power-preservation
Where to Hide? – The Aleph Blog
US CDS curve inverts for first time ever [updated] – Alphaville FT
Leonhardt’s ‘farewell’ column takes a step back and looks what we know and don’t know about the economy. Bottom line is that there is little consensus in economics how to solve the biggest problems and virtually no political will.
OPERATORS
Did Rating Agencies Give Preference to Big Banks? – Freakonomics
“a system to monitor the behavior of high- frequency trading firms and hedge funds under new reporting standards for the most active market participants”
So now even SEC is a sad panda.
S.E.C. Removes Credit Ratings From Regulations – Dealbook / WSJ
Basel: “sovereign risk should be included in incremental risk capital charge”
Questions not to ask – sovereign risk edition – Deus Ex Macchiato
10 Things Every Trader Needs to Know About the Changing Regulatory Landscape – Advanced Trading
EMERGING & COMMODITIES
What to make of the Turkish government’s statements? – EconoMonitor
“Only solution is higher rates”
The lira and Central Bank of Turkey’s options - EconoMonitor
Foreign investment in Brazil market dives 70% in first half of 2011, India’s FDI inflows falling
London headlines – beyondbrics FT
Brazil’s Bovespa: backpacker’s choice? – beyondbrics FT
Morgan Stanley's Q3 Outlook On Gold, Silver, Rare Earths And Every Other Metal Under The Sun – Zero Hedge
OTHER
Includes a link to Artemis Vol Report
On Broken vol, skew and implications on the Markets – The Trader
VG short blog on the % of companies that provide no earnings guidance. When the crisis began, the % increased, and during the last 12m bull the % decreased. Now, in Q2, the number suddenly rose to a higher level than ever – this could be bad for stocks and a very interesting indicator for other uses.
No Guidance Is Better Than Bad Guidance – Bespoke Investment Group
One chart: Comparison of 2010 asset allocations of pension funds in different countries. Australia and US equity-heavy, while Koreans have almost zero eq risk.
Hey, It’s Like Selling Stocks to Koreans – Infectious Greed
“The dirty secret of the retail asset management business at brokerage firms is that their profits depend on treating you badly.”
Quelle Surprise! Banks Don’t Want to be in IRA Business if They Can’t Treat Customers as Stuffees – Naked Capitalism
There’s zero accountability in economics – Dean Baker opinion / Reuters
Economic specialization is a feature, not a bug – Larry Summers opinion / Reuters
DIVERSION
Douglas ‘Dilbert’ Adams
How to Tax the Rich - WSJ