30th Aug EARLY - CEE no euro, hear no crisis

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Summary: ECB signals easier monetary policy, Trichet and Rehn lie that European banks have sufficient capital and liquidity, BoA and Iceland went to China for money. The CEE countries are increasingly becoming disinterested in the euro process. A while back Polish and Czechs have criticized the euro as the reason for the current crisis, and have stated they have no interest in joining a transfer union and are not in a hurry to decide at the moment.

Joke of the Day: "There is no liquidity or collateral shortage for the European banking system" – ECB’s Trichet speaking to European Parliament yesterday

EURO CRISIS

Nice roundup of the euro situation, and not the first time I’ve liked Simon Derrick’s pieces.

Morning Briefing – BNY Mellon

German Debate on Bailout Fund Is Test for Merkel – WSJ

Europeans Appear Set to Pause Rate Rises – WSJ

Finland’s Greek collateral plan breaks negative pledge – alphaville FT

Czech participation in the euro zone as "not an issue," blamed the euro for the financial crisis now roiling Europe.

Czech Premier Takes New Dig at Euro Zone – WSJ

Companies Stop Selling Bonds as Costs Jump by 40%: Euro Credit – BB

Trichet and Rehn state that banks have sufficient liquidity and capital.

EU officials defend health of European banks – euobserver.com

Rehn questions political appetite for Eurobonds – euobserver.com

FINANCIAL CRISIS

How The Economy Quietly Entered A Recession On Friday, And Why The GDP Predicts A Sub-Zero Nonfarm Payroll Number – Zero Hedge

WSJ and CNBC both note the high corr and talk to GS, Credit Suisse about it

Only Moderate Correlation In Conclusions Of Articles About High Correlation - Dealbreaker

If banks should act as utilities, why not treat them as such? – voxeu.org

30min video interview on Wealthtrack, talks about feedback loops, bearish on stocks, housing

Deep Thought from Robert Shiller – Pragmatic Capitalism

OTHER

The upmove in stocks is not confirmed by a drop in VIX – probably the low-volume move higher is just correction.

S&P 500 Outperforming the VIX – SurlyTrader

Has a scribd-link to the book “The Essays of Warren Buffett”

Warren Buffett's Philosophy On Investing In Banks – Zero Hedge

Sand in the Machine the Key to Stable Markets: Mark Buchanan – BB

Recommended: has a link to a pdf file collecting all his posts to a book.

Max Dama on Automated Trading June 2008-July 2011 – maxdama.com

Overdue Loans In Chinese Banks Increase – Also Sprach Analyst

DIVERSION

The surprising benefits of negative moods – Farnam Street

China-Icelandic markets in everything – Marginal Revolution