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| Christian Noyer, joke of the month |
Summary: Latest suggestion is to use the Greek bank stocks as collateral for the bailout “loans”. Eurocrats publically in total denial of the banking crisis. Very good euro links today, and the Scholes lecture video posted under diversion is worth the time.
Views: Range trade: Buy EURUSD at-the-market 1.4440, stop 1.4370 target 1.4520. The news just keep getting crazier every day. I’m speechless. Perhaps I’ll comment something later today.
Joke of the Day: "Either she had been misinformed by her staff at the IMF - that's a possibility- or she did not have French banks in mind” – Bank of France governor Christian Noyer rejecting IMF chief Lagarde’s statement that EU banks are in urgent need of recapitalization. Read this for more Noyer-laughs.
EUROCRISIS
EFSF vote in German parliament is moved – new date 29th
Very good euro crisis commentary
“clear causal chain produced by a series of missed opportunities.”
The Eurozone Crisis Then and Now – EconoMonitor
Banks’ buying spree after adoption of euro, then full transfer to less risky (sov’s), which has become most risky. Check mate.
Euro splurge! – alphaville FT
We all know why.
“The squabbling over the Greek bailout shows just how unlikely it is that Europe can solve its greater problems.”
Is the Greek bailout falling apart? – The Curious Capitalist / TIME
EFSF suggests Greek bank share would be used as collateral.
Greek Tragedy: Is This A Joke? – Also Sprach Analyst
Europe's Ponzi Takes A Twist For The Wacky: Greek Bank Equity To Be Used As Loan Collateral – Zero Hedge
Negative pledge — a periphery tour – alphaville FT
Europe's Ponzi Takes A Twist For The Wacky: Greek Bank Equity To Be Used As Loan Collateral – Zero Hedge
After Pissing Off Germany, Lagarde Now Angers France, Which Blames The Collapse In Financial Markets On The Seasons – Zero Hedge
EU budget in works: Poland wants "bold" budget 2014 to 2020 to boost growth
Poland keen for EU to spend its way back to growth – euobserver.com
FINANCIAL CRISIS
Nothing was done during the bull market. ”There are no good solutions now. Bail out this, bail out that. Eventually there will be a fail of some sort. I just don’t know what, when or how.”
Missed Opportunities – The Aleph Blog
Repo markets going silent
If the Zero Hedge’s version is not suitable for your sense of self, FT’s take on GS research note:
Goldman’s Q(E3)&A – alphaville FT
Just because I’m a fan of the Saturday Night Live sketch ‘more cowbell’
No More Cowbell – Advisor Perspectives
Economist from Dutch central bank: moral hazard ahoy.
EMERGING
After the rumors, confirmation of the ExxonMobil & Rosneft co-op.
Rosneft: a new bride at the altar – beyondbrics FT
Morgan Stanley calculates the external funding needs over the coming years and compares them to current FX reserves. Many other countries look dangerous as well.
Turkey Most Vulnerable to Sudden Stop – History Squared
OTHER
Myron Scholes video presentation, recommended.
Quantitative Finance and the Intermediation Process – Lindau meet of Nobel laureates
Joseph Stiglitz video lecture: macro models, monetary authorities, market liberals have failed. Capital controls would lessen contagion risks and thus lower volatility
Imagining an Economics that Works – Lindau meet of Nobel laureates
NBIM Financial Research Conference’s opening speech by central bank governor
On the risk aversion of Nobel Committee, future of econ etc.
Nobel conclusions – Economics Intelligence
DIVERSION
A Curated Linkfest For The Smartest People On The Web – Simoleon Sense
Why the Next Steve Jobs Will be in Energy, Not Computers – MIT Technology Review
Confessions of a Former Apple Fan – Spiegel
The Limits of Engineering – of two minds
An essay from Der Spiegel translated. Arab Spring’s European version coming?