Google Analytics

Wednesday, August 24

24th Aug EARLY - This market needs Rambo


Summary: First Euro Crisis link is elegant and solution probably wise. Blodget’s article on BoA has a photo of Rambo. Old timers probably remember Reagan’s joke, others: Google.



EURO CRISIS
Four solutions: default/restructuring, ECB goes nuclear, integration, or breakup. First is cheapest, and the Swedish model (nationalization) is recommended
The price of becoming Swedish – Humble Student of The Markets




Reforms and austerity are not enough, reform and coordinated action across euro zone required. Growth is the only savior. Inaction and lack of urgency by political leadership has to end.
What Italy tells us about Europe's debt crisis – The Curious Capitalist / TIME

Daniel Gros: Eurobonds only make sense in a political union, and only when debt levels are low

Plans to have noncash collateral (real estate etc), backing away from bilateral (Finland) cash collaterals


Background reading and for getting an idea of the German views0
The future of the Eurozone – Max-Planck-Gesellschaft

Essentially the Finns are a holdout creditor.
A Bailout Like No Other – DealBook NYT

In late 2008 ECB emergency USD funding was 300bn, now 0.5bn. But it’s a start ;)


FINANCIAL CRISIS
Extend maturity of holdings, pushing investors to do something else than buy T-bonds?

Is the combination too large a systemic risk? The decision will be an important precedent.

Full paper from Paisley Financial: Balance sheet recession, causes, Japanese lessons, cures
Winds of Change – Pragmatic Capitalism

Full report from HSBC


OPERATORS
Henry Blodget’s article: seize the bank, fire management, inject capital etc. And a photo of Rambo!






DIVERSION

"step up the application and management of new technology, and absolutely put an end to fake and misleading information". Party time!