9th Sep Late - Greece finally bust?

Summary: Greece is widely rumored to go bust this weekend. Unless G7 can come up with something, which is highly unlikely, Greece will probably be sacrificed, but the real question is will the rot stop there. Probably a full-blown banking crisis in core and periphery and further damage in the rest of the PIIGS-countries would follow.

SocGen speculates that aggressive money printing via debt monetization by ECB would be next step, as that would solve the immediate problems. Can they change ECB mandate that quickly? Basically this is the reason for the euro’s sell-off during the last two days. First euro crisis links are must-reads, and there are some interesting links to recent research. 9/11-links and crisis-calendar updated.Follow me on Twitter!

Quote of the day: “Because after the FX wars come the trade wars, and after the trade wars come the shooting wars.” – Tyler Durden on Zero Hedge

SocGen suspects money printing is the next step

** ECBCTRL+P: The Next Steps In The European Implosion – Zero Hedge

Link to couple of days old research piece “Concerted Easing?`” from Morgan Stanley

** G7 Considers Issuing Communique: Global Easing Imminent After All? – Zero Hedge

** Euro Crashing: Greek Default To Come? – Also Sprach Analyst

Market Chatter Of Greek Default Over The Weekend – Zero Hedge

** As Greece Denies, Germany Begins Greek Default Preparations – Zero Hedge

All Is Up To the Greeks Now – The Source WSJ

D-Day For Greece And Another Eurocalypse Report From Goldman Sends Europe Tumbling Once Again – Zero Hedge

On Sounding Like A Broken European Record – Zero Hedge

It's Official: Stark Is Gone – Zero Hedge

Exclusive: Stark to leave ECB over bond-buying – Reuters

European Liquidity At Worst Level In Years – Zero Hedge

Extortion and prostitutes

Berlusconi faces new scandal as Italy crisis mounts – Reuters

Spain’s Next PM Bares His Soul, Ahead of General Elections – The Source WSJ

Europe on the Verge of a Political Breakdown – Project Syndicate

OTHER

He wants to be the Peter Lynch of hedge funds

Fired by Goldman Scaramucci Now Schmoozes – BB

The Swiss take fright at the strength of their currency—and set an unfortunate example

Exchange-rate targets: Francly wrong – The Economist

Intro and link to U.K. Government Office of Science’s working paper

** The Future of Computer Trading in Financial Markets – The Trader

Attention Human Trader, You Are No Longer Needed – Themis Trading

Correlations, Correlations Everywhere – The Source WSJ

** Momentum – SSRN

STRR is pervasive and much greater than previously documented, provides alpha  and driven by sentiment on short side and liquidity shocks on long side

** (pdf) Decomposing Short-Term Return Reversal – N.Y. FED

Banks were happy to pay premium to pass the TBTF-threshold, and nonbanks to become part of TBTF banks, extending TBTF subsidy beyond banks.

(pdf) How Much Did Banks Pay to Become Too-Big-to-Fail and to Become Systemically Important? – Philly Fed

Saving Imbalances and the Euro Area Sovereign Debt Crisis – N.Y. Fed

DIVERSION

How AT&T conquered the 20th century – arstechnica.com

Great photos.

Portraits of Workspaces – brain pickings

http://www.brainpickings.org/index.php/2011/09/09/portraits-of-workspaces/

** Redirect: A New Way to Think About Psychological Change – brain pickings

Readers have never had it so good. But publishers need to adapt better to the digital world

Disappearing ink: the transformation of the book industry – The Economist