6th Sep Late - Cuckoo!

Summary: Wow – Swiss franc. Decision announced by the German court on the constitutionality tomorrow morning. Italians were quick to realize their ponzi scheme is currently not working without ECB’s help and announced new austerity plans – amid rioting and distrust that they really make the fiscal cuts this time.

Views: In today’s earlier post, I recommended to buy EURUSD at-the-market ( 1.4090), target 1.4400, stop 1.3950, and tweeted later to take profit on half at 1.4215. Keeping this now as it is, though the stop level is awkwardly close (now 1.4015, low 1.3972)

EURO CRISIS

“With which countries do core voters sufficiently identify themselves as to make a large, ongoing commitment acceptable? Answer that, and you probably have a good idea how this mess will end.”

Insiders and outsiders – Free exchange / The Economist

Economic Crossroads of Immense Consequences: Will Governments and Central Bankers Bail Out Bondholders and Banks (again), or the Public at Large? – Mish’s

FT does not agree with UBS’s gloomy report on EZ breakup cost

Who is the doomiest of all? – alphaville FT

Three simple charts.

Why this Focus on Italy? – the trader

Italy Announces Austerity Plan 2.0 As Local Protests Spread, Turn Violent – Zero Hedge

Decision on Wednesday European morning. I saw 10:00 a.m., German time?

Court to Give Bundestag Bigger Say in Bailouts – Spiegel

The design is crucial, otherwise some countries become dependent on handouts.

Designing a Transfer Union to Save the Euro – Spiegel

Good roundup of eurocrats’ statements on Monday

Merkel: Countries will not be kicked out of eurozone – euobserver.com

SWISS FRANC

First announcement:

The Swiss National Bank is pegging it – alphaville FT

SNB Move Leaves Markets Short of Safe Havens – The Source WSJ

Read this. Very good points from someone who has seen a lot of FX in his life.

On the Swiss Move – Bruce Krasting

“EUR spread over CHF is now the new benchmark of Euro blow-up risk and EURCHF volatility is the market perception of the SNB failing.”
Swiss Jeez – Macro Man

Super QE, or beggar-thy-neighbour – Buttonwood / The Economist

The Swiss Choose Inflation – The Source WSJ

How much does the SNB have to buy foreign currency to keep the 1.20?

The SNB’s $1 Trillion Worry List – The Source WSJ

SNB euroquake, the analyst reaction – part one – alphaville FT

SNB euroquake, the analysts react – part two – alphaville FT

DIVERSION

A trading psychology article that actually makes sense.

Are Traders Dumber than Drooling Dogs? – The Psy-Fi Blog

Has a youtube link to a hilarious venture capitalist rap

I’m a VC – Infectious Greed