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
Finland threatens to withdraw Greek bailout support – The Telegraph
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.
In late 2008 ECB emergency USD funding was 300bn, now 0.5bn. But it’s a start ;)
The Interbank Markets Are Malfunctioning (Again) – Also Sprach Analyst
FINANCIAL CRISIS
Extend maturity of holdings, pushing investors to do something else than buy T-bonds?
Bernanke May Flag Possible Portfolio Shift On Friday – Real Time Economics WSJ
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
Mid-August Complete Hedge Fund Performance Update – Zero Hedge
OPERATORS
Henry Blodget’s article: seize the bank, fire management, inject capital etc. And a photo of Rambo!
It's Time For A New Kind Of Bank Of America Solution—The Right Kind – Business Insider
Bank of America (BAC) P/B Approaching Credit Crisis Lows – Bespoke Investment Group
JPMorgan says BofA may need a capital raise – alphaville FT
Why Not A Reverse Takeover of BAC by China Construction Bank? – Inner Workings
BofA Says Henry Blodget Isn’t Qualified To Talk About Its Capital Hole; JPMorgan Thinks It Might Be - Dealbreaker
DIVERSION
"step up the application and management of new technology, and absolutely put an end to fake and misleading information". Party time!
The country of humor is … Germany! – A Fistful of Euros
Notes from some small islands – Macro Man