EURO CRISIS
Greece won't proceed with bond-swap deal if private participation falls below 90% participation rate.
Greek asset sweating – alphaville FT
The Greek bond swap — formalized – alphaville FT
“Where appropriate, a collateral arrangement will be put in place so as to cover the risk arising to euro area member states.”
Ambiguity Set Up Greek Bailout for Failure – The Source WSJ
A contact in Finnish finance minister Jutta Urpilainen's office, speaking on condition of anonymity, told EUobserver on Friday (26 August): "The solution with Greece that we had last week is not valid anymore but negotiations are ongoing for another solution."
Finland abandons Greek collateral deal under German pressure – euobserver.com
Merril Lynch: Eurobonds do not work, unless all sov debt is swapped, and only with full fiscal union.
What price Europe? – alphaville FT
ECB’s letters to Italian and Spanish leaders, then after austerity measures bond purchases. Greenmail?
Are Euro Zone Governments Caving In to ECB Diktat? – The Source WSJ
ECB extends swap line agreement with BoE – centralbanking.com
This week’s selected articles from the German magazine Der Spiegel.
FINANCIAL CRISIS
“There are a lot of opportunities out there, and one shouldn’t complain, unless you don’t have good health”. Irving Kahn started as a stock analyst and brokerage clerk in 1928, 23 years old
Advice From a 105-Year-Old Banker – The Daily Beast
Deleveraging: no growth in consumer spending: no corporate investments, no employment.
The Heart of the Matter – The Big Picture
WP from Netherland’s central bank: CDS prices point to risk transfer from financial to sovereign sector
Breakdown of component contributions to growth
FED / JACKSON HOLE
Bernanke’s speech
Other papers and lectures presented, more to come during weekend in this address
“dissonance between Mr Bernanke’s focus and tone, and the palpable sense of nervousness amongst the Jackson Hole attendees. The mood in the meeting’s corridors is grim,”
Passing the baton – Free exchange The Economist
PIMCO CIO comments
El-Erian: Interpreting Bernanke’s Jackson Hole speech – alphaville FT
Is Bernanke bluffing?
Bernanke's Invisible Bazooka Ploy – Mish’s
Bernanke highlights Sep FOMC meeting, Suggests more Fiscal Stimulus – Calculated Risk
OTHER
One of the more interesting weekly market newsletters out there
(scribd) Things that make you go hmmm… - Grant Williams
Two lists of bullish and bearish factors
Weekly Bull/Bear Recap: August 22-26, 2011 – Rational Capitalist Speculator
Succinct Summation Of Week’s Events (08/26/11) – The Big Picture
Blackrock has filed to become an index provider. Before industry used and paid for established indices (Dow, S&P etc.). If this trend takes off, investors get more diversity and the unintended consequences of index additions mitigate.
Buy vs. build: the ETF index decision – Abnormal Returns
Has a link to the pdf Review of Futures Markets vol 19, with a HFT critical piece from Themis Trading
Academic paper questions HFT role in volatility and correlation – The Big Picture
Arvind Subramian’s 14-page pdf in Sep/Oct issue from Foreign Affairs
Contrary to assumptions, Saudi Arabia is “an economic basket case waiting to happen”.
The Kingdom of Magical Thinking – Foreign Policy
Never a dull article from Kay: “Economists – in government agencies as well as universities – were obsessively playing Grand Theft Auto while the world around them was falling apart.”
Economics: Rituals of rigour – John Kay
Long-term charts
Corporate Profits, Economic Growth, and Equity Valuation - Econompicdata
DIVERSION
Tablet computers
Difference Engine: Reality dawns – Babbage The Economist
You have to have $100m liquid after the purchase price
First-ever foreclosure in billionaires' block as recession finally catches up with New York's mega rich – Daily Mail
Also Steve Jobs interview from Playboy 1985.
East German Nuclear Bunker Opens to Tourists – Der Spiegel