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“A historic press conference is about to unfold, in which the current ECB president, in a state of complete denial about the imminent implosion of his continent, will mumble for 45 minutes one last time and attempt to preserve his "legacy" after which he will hand over the "printer" briefcase and secret codes to none other than Goldman's Mario Draghi. And Goldman, as is well known to Zero Hedge readers, is certainly not nearly as shy as ole' Tricky to print when needed. Expect some vague promises of more liquidity, possibly the reopening of a 1 or 2 year repo line in which the ECB will accept even more used banana peels and sexual prophylactics in exchange for euros, and an overall deflationary bias. It doesn't matter. It is too late. More importantly, today's "shot rules" are a shot of Jager every time the words "price stabeeleetee" are uttered.” – Zero Hedge
Boring day - notice the Breakinviews' EZ bank stress test calculator , pictured above and workable link here. A bit cheeky, since normally these stress tests take weeks and months to prepare. Basically they just took the figures from the previous EBA stress test introduced sovereign haircuts on top. Probably took one guy eight hours to finish. Take that, you stupid EBA!. I updated the Steve Jobs-post. Leave a comment, follow me on Twitter and Facebook, or email me. Buy Aaron Brown's book – and buy another as a gift to me.
I would like to thank Kari "The Street", Pauli "The Spread", "Wolfgod" and Samuel "The Athlete's Foot" for their feedback, much appreciated. Special thanks for guest posts to Macronomics and The Trader and for linking to this site to Simoleon Sense.
News: Today's Headlines (Thu evening) – Between The Hedges
FX options: Vols, Risk Reversals & Pin Risk – tradingfloor
Debt crisis: live – The Telegraph
Eurozone crisis: live blog – FT
Debt crisis Live Blog – The Source / WSJ
This does not fit anywhere, but because it's good it's here.
EURO CRISIS
Is There A Table Limit? – ZH
Peter Tchir: “Stop the madness. Let Greece default. Let Portugal and Ireland negotiate real haircuts on their debt. Let some weak banks (even large weak banks) fail. Then provide support. Support the best of the rest. Provide infusions. Create new institutions where necessary. Stocks will be lower, but a floor can be provided.”
Early Talk of “Nuclear Option,” Unlimited Sovereign Bond Purchases by the ECB – HistorySquared
“Politicians will be left with money printing. No votes are needed. No public support is needed. No debate is needed. Like magic, it goes away. Or rather, the problems created ; the financial repression, the inflation tax, and the transfer of wealth from citizens to banks are hidden from public view.”
BRICS to the Rescue – EconoMonitor
Michael Pettis is on fire: “If Europeans do not want to fund credit-impaired European governments, they should not ask foreigners to do so. Slower growth and foreign debt will not help resolve the problem of insolvency.”
Who Is Mario Draghi? – The Capital Spectator
Not much is known about the policy stance of Trichet’s follower.
FINANCIALS
ECB’s latest lending survey shows banks’ funding access got into trouble on Q3, but we kind of knew that already. Two good charts.
Dexia still bringing stress to a town near you – alphaville / FT
Goldman predicts a fire sale of USD assets by French banks – alphaville / FT
The develeraging needs cause the banks to sell good, liquid assets for an ok price. Dollar-assets will come to the market.
Spanish Banking Bailout Mimics Irish Problems – The Source / WSJ
Spanish bank failures are not the problem. What is really scary is the state recapitalizing the banks and ending in a similar black hole than Ireland.
QE
BoE News Release – BoE
QE. Next it will be nationalization – Fintag’s Newsletter
And the answer is...more QE – Buttonwood / Economist
Knee Jerk Responses To BOE "Aggressive" QE Expansion – ZH
Why sterling just got splattered – alphaville / FT
OTHER
The Shiller P/E Ratio – Turnkey Analyst
To Samuel: Stocks seem expensive, stocks relative to bonds seem cheap, thus bonds are expensive.
There has been talk of raising the EURCHF floor, but is the gamble worth it for SnB?
Cheat Sheet: Details of the Long-Awaited Volcker Rule – American Banker
Volcker Rule To End With “P.S. Please Don’t Blow Yourself Up” – Dealbreaker
FT’s comments on the research I first pointed yesterday.
Soros Loses Challenge to Insider Trading Conviction – DealBook NYT
#OWS
Unsavvy People – Krugman / NYT
At first everyone was dismissive of the OWS demonstrations – but they are right.
A Suggested Theme for the Occupation of Wall Street – EconoMonitor
Occupy Wall Street — What's It Really Like? – CNBC