19th Sep - Monday Blues

Summary: nothing new, this week’s main events FOMC (two days, announcement on Wednesday, not expecting much, but something), IMF meeting, continued Greek struggle. UBS rogue trader updated. Leave a comment, follow me on Twitter or email me. 

News roundup: Monday Watch – Between The Hedges

FX OTC options 19^th Sep 07:00 GMT

Vols, Risk Reversals & Pin Risk – tradingfloor.com

** Key Events In The Coming Week – ZH

EURO CRISIS

Excellent roundup and commentary of the blogs and news

** Fed decision Wednesday a sideshow to Europe – Humble Student of The Markets

“(Geithner) is an example, right up there with George W. Bush, of the privileged American elite who "fail upwards" throughout a career.”

** "Deficit Attention Disorder" – London banker

Good background reading – history,

** European Markets A Local’s Perspective – Macrostory

Excellent roundup of views and news from Stock World Weekly newsletter

** Kabuki Theater Economy – ZH

First the original, then ZH’s copy

Euro zone debt crisis in graphics – Reuters

Interactive Infographic Of The Doomed European Financial System – ZH

European repo council survey: EU-originated government bond-backed repo at a record low, trend towards USD funding last year waning in preference for JPY funding, overall lengthening in the duration of repos too.

European repo turns to Japan – alphaville / FT

(pdf) Saving Imbalances and the Euro Area Sovereign Debt Crisis – N.Y. FED

Euro banks

The graph in the article is good.

European banks face major reckoning – WP

Frankfurter Allgemeine: "German Banks Need $175 Billion More In Capital" – ZH

Former UK PM Brown Comes Clean On 'Grossly Under-Capitalized' European Banks – ZH

Greece

Greek commentarty after UBS.

** Because they Aarrgh – Macro Man

Greek Theatre. Tragedy Or Comedy? – ZH

“Things appear to be coming to a head in Greece.”

Blackmailed and humiliated – Buttonwood’s / The Economist

DSK Says Greece Is Done – ZH

FINANCIAL CRISIS

** Income Inequality Produces Indebtedness and Global Imbalances – naked capitalism

Most vulnerable: small reserves vs. foreign short-term debt was vulnerable

The 2008-2009 Global Financial Crisis: Lessons for Country Vulnerability – EconoMonitor

Traces back recent turbulence in financial markets to weaker growth expectations

Press release on Sep 2011 Quarterly Review – BIS

BIS Quarterly Review, September 2011 – BIS

direct link to pdf

FOMC

Richard Alford, former NY Fed economist: Fed will almost certainly take stimulative steps, but not much, and not mucheffect should be expected.

The (Re)Education of Ben Bernanke and the FOMC – naked capitalism

Links to six recent articles

** Debating Central Bank Policy – The Capital Spectator

Rearranging the Deck Chairs – Tim Duy’s Fed Watch

FOMC Preview – Calculated Risk

CHINA

Evans-Pritchard: “carefully-managed soft landing is turning harder by the day, threatening to deflate the torrid credit bubble of the past three years.”

China risks hard landing as global woes spread – The Telegraph

Summary of the above article

China Hard Landing  – HistorySquared

Week-old article outlining Lombard Street’s view

China's "hard landing" underway, says economist – Fundweb

Commentary: Shadow banking sparks new worries  – Marketwatch

China Home Prices Rise, Challenge Curbs – BB

Local Government Debt Is China’s Subprime – BB

Home Prices Rise in All 70 Monitored China Cities;Local Governments Rely on Ponzi Land Sales to Pay Mounting Debt;Tightening Concerns Hit China Stocks – Mish’s

DIVERSION

Linkfest For The Smartest People On The Web – Simoleon Sense

How valuable chess pieces really are

The Evaluation of Material Imbalances – Larry Kaufman