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| M/O is the demographics ratio of middle-aged/old |
SUMMARY: The European interbank crisis dominates the discussion. First three Euro Crisis-links are absolutely must-reads.
Quote of the Day, on the possibility of FED opening massive swap lines with European central banks: “If I’m wrong, and we get nothing, the European funding markets are going to collapse next week. It will be very difficult to reverse the damage that this will cause. All the central bankers know this. They know that there is not much time left to act. They can’t wait another two weeks.” – Bruce Krasting
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| More old people, more sellers, less buyers |
Joke of the Day (Markets are Wrong!): SocGen has set aside €170 million for Rothschild to buy and sell, to “stabilize and support” SG’s stock price: Societe Generale Signs Liquidity Contract With Rothschild - WSJ
EUROCRISIS
Article goes further to discuss implications of swap lines importance and even possibly FED’s coming actions in the area.
FX swap lines to the rescue? – alphaville FT
Slides from a recent BloombergBRIEF
7 Charts Showing The Lock Out Of European Capital Markets And The Surge In Counterparty Risk – Zero Hedge
"The next move by the Fed is to massively open up the dollar swap lines with European central banks”
On EU banks, Solvency or Liquidity? - Or BOTH? – Bruce Krasting
Whether the government broke the law with last year's bailouts of debt-stricken euro zone countries.
Lines are cracking behind the bailouts:
The Greek collateral grab — a credit event after all? – alphaville FT
Collateral (credibility) damage – alphaville FT
Moody's warns bailout package for Greece could unravel over demands for loan collaterals:
Ratings agency says EU bailout deal faces fresh risks – euobserver.com
Without getting growth up, the debt crisis cannot be solved.
The only way to fix the euro zone is… – The Curious Capitalist / TIME
Italy: Is there a way out of the woods? – euobserver.com
FINANCIAL CRISIS
What the options are, what they mean and would they work
A look inside the FED’s limited toolkit – Pragmatic Capitalism
FED paper on demographics: 15 years of bear coming. Today’s graphs are from here
SG Equity Derivative’s global equity index vol report is interesting reading
Volatility – the trader
U.S. Review and Preview & LatAm Abundance Shaken – Morgan Stanley
Mainland Chinese have been partly to blame on the run-up in house prices. Now they have stopped buying.
Australian Housing Market Starts to Turn – HistorySquared
Citi: given growth expectations, stocks are globally cheap – but expectations might change
Closer to profits recession, global edition – alphaville FT
OPERATORS: MOSTLY BANK OF AMERICA
Bank of America: Could it Need $200 Billion in Capital? – MarketBeat WSJ
1Y CDS above 5Y CDS
Bank of America, inverted – alphaville FT
Why is Bank of America’s Stock Cratering Yet Again? It’s the Extend and Pretend Endgame – naked capitalism
Here's Why Bank Of America's Stock Is Collapsing Again – Business Insider
Good morning Bank of America – alphaville FT
DIVERSION
The Misconception: You celebrate diversity and respect others’ points of view. The Truth: You are driven to create and form groups and then believe others are wrong just because they are others.
The Illusion of Asymmetric Insight – You are not so smart
Dread Risk: Investing Outside the Goldfish Bowl – The Psy-Fi Blog