Today’s Headlines – Between The Hedges
FX options 19th Sep 12:30 GMT
Vols, Risk Reversals & Pin Risk – tradingfloor.com
Credit market overview with good charts and comments
Credit Markets - Controlled demolition – Macronomics
EURO CRISIS
While the fiscal position of many countries was ok before crisis, end result was still fiscal trouble. Risks and sustainability are not captured by simple measures like budget deficits.
** Is the eurozone crisis a sovereign fiscal crisis? – Marginal Revolution
Required: credible solution to Europe ’s debt crisis and recapitalization of banks
** German Banks Need Recapitalization of 127 Billion: Report - EconoMonitor
USD basis swap prices already back to levels before Thursday’s annoucement
Dollar funding costs rise as central banks’ plan seen inadequate – Pragmatic Capitalism
Not BNP, so either SocGen or Credit Agricole.
No public announcements, decision on payment of next tranche moved to 3rd Oct. Actually, there was an announcement that the talks went great and everything is ok, but nothing..
** Greece: Conference Call with EU and IMF has started – Calculated Risk
Default coming, two official denials: “never believe anything until it’s officially denied”
“100% chance of default”
** Preparing for a Greek Default – The Burning Platform
Nouriel Roubini, headline says it all.
Greece Should Default and Abandon the Euro – EconoMonitor
Coup is a possibility, but not very probable.
Greece: Don’t Discount the Role of the Military – The Source / WSJ
19th Sep speech on Greece
FOMC
Markets are pricing in further easing, so policy scope is limited.
What’s a Fed to do on Wednesday? – Pragmatic Capitalism
Recent speech by Richard Fisher, President of Dallas Fed
(pdf) Of moose and men – BIS
OTHER
Show this to the cultists complaining how banks create money from thin air.
Fractional reserve banking – MacroMania
Video interview and transcribed text