15th Sep Early - Rogue Squadron

Summary: Breaking news, UBS reports $2 billion loss on "rogue trader". In my opinion, losses are losses, were they authorized or not. My linkfests from yesterday were huge, here. And follow me on Twitter or email me.

News roundups:

Thursday Watch – Between The Hedges

News That Matters – The Trader

EURO CRISIS

George Soros: European Treasury is the only way to avoid a meltdown and another Great Depression

** Does the Euro Have a Future? – The New York Review of Books

“In my opinion, I think the EMU will continue to kick the can until they are forced to break out a bazooka of some sort. This means they either implement Eurobonds, Euro TARP or some other measure that leads in the direction of effective fiscal transfers and fiscal union.”

** Macro Minute – Euro update – Pragmatic Capitalism

“the lack of foresight among Europe's politicians that has gotten the euro zone into this mess will persist, placing the European financial system in danger. And then, as Courtis says, there would be nowhere to hide.”

** French Bank Downgrade: Are euro zone bonds the new subprime? – The Curious Capitalist / TIME

Policy of secrecy lessens trust, increases moral hazard

**Anne Siebert: The damaged ECB legitimacy – voxeu.org

The current eurocrisis was not a surprise – it was discussed by British politicians already in 1990

Maggie Thatcher, Hard ECUs, and the Eurozone shambles – A Fistful of Euros

Shadow banking trouble, European banks signing private repo agreements with U.S. banks

US banks privately lending billions to support European lenders – International Financing Review

They have already bought the periphery. They are not stupid and for throwing good money after bad, they want things – namely, WTO membership.

China states price for Italian rescue – The Telegraph

Merkozy & Papandreou talk, repeat earlier promises – alphaville / FT

TRADE IDEAS

Delivering Alpha conference, some outtakes:

Hedge Fund Best Ideas: Kyle Bass, Dan Loeb, Leon Cooperman, Phil Falcone – market folly

Paul Touradji & Jeff Scott on Commodities – market folly

China: Bubble or Bonanza? Xerion Fund's Dan Arbess Versus Kynikos' Jim Chanos – market folly

Bill Ackman's Latest Investment: Long the Hong Kong Dollar – market folly

Jim Chanos: "Long Corruption and Short Property in China" – market folly

OTHER

Very good research from MSCI-Barra

** More Similarities To 2007/8 Quant Crash – Zero Hedge

Full research piece from Zacks Investment Research

Earnings expectations are starting to fall – Pragmatic Capitalism

Europeans Reignite Fusion Energy Project – technology review