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Tuesday, February 28

28th Feb - Que Sera, Sera...

BofA:s Greek tree from ZeroHedge

I had a larger post last night LTRO, Oil and Magic with tons of good reads and pretty pictures. Please consider this post as a morning brief and update. The LTRO: The Ultimate Collection and the Calendar have been updated. I am on Twitter, Facebook, email and paper.li


News roundup – Between The Hedges
News roundup – The Trader
Emerging London Headlines – beyondbrics / FT
Press digests by Reuters: FT, WSJ, NYT

  -S&P declares Greece in selective default, oil prices retreat, US data later
Morning Briefing – BNY Mellon
  -LTRO II is to be welcomed, but a means to an end and certainly not without risk.
Market Preview – Saxo Bank

Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
Tracking Europe’s Debt Crisis – NYT

EURO CRISIS
Sarkozy Breaks Campaign Pledge, Says Treaty Too Complicated For A VoteMish’s
Sarkozy says "I can't see how you'd formulate a clear question.” Mish Attempt to Formulate Clear Question For Voters: 1) Punch Yes to Approve Treaty 2) Punch No to Disapprove Treaty

Waiting for LTRO: A Play in Two Acts Macro and Cheese
My best guess is that the size of the operation surprises to the upside, but following an initial push up, the market stalls and either declines, or fizzles out into unchanged territory.  After that, the onus is on the bulls.  The market has come awfully far on the back of EUR 200 billion in net LTRO I loans.  Without a barnburning second act, beware of flying tomatoes.

The Final Final Greek PSI Decision TreeZH
BofA’s version. For the “classic”
BNP, see this

S&P statement on GreeceMacroscope / Reuters

Consequences Of The “SD” Rating For Greece By S&PTF Market Advisors
Probably none. In a normal world, the ECB wouldn’t finance positions for banks that were rated D or SD.  But since the ECB is behind the whole deal and is doing everything for banks, any actual rule prohibiting that will be amended immediately if it hasn’t already been (there was a time the ECB would only fund investment grade assets). 

Press release: Eligibility of Greek bonds used as collateralECB
…temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic for use as collateral in Eurosystem monetary policy operations.

OTHER
JPM Pwns Nancy Pelosi ZH
 
JPM’s analysis: US cannot stop relying on oil imports

The Post-2009 Northern & Western European Housing BubbleBubble Bubble
Could Sweden or Finland be the scene of the next European financial crisis? It is actually far likelier than most people realize.

Ben Bernanke and the zero boundvoxeu.org
What explains Bernanke’s caution as Fed chair? This column argues that one possible factor is ‘groupthink’, where individuals go along with what they perceive as the majority view. Many of the Fed’s features – its tradition of decision-making by consensus, limited interaction with outsiders, and atmosphere of camaraderie – encourage groupthink. And Bernanke’s personality, often described as modest and unassuming, may have reinforced the effects of groupthink.

Basel regulation needs to be rethought in the age of derivativesvoxeu.org
Amid the chaos of the Eurozone crisis, the debate over how to fix the banking system has been pushed to one side. This column, the first of two, aims to bring banking regulation back to the centre of attention. It argues that the Basel III regulations currently being proposed are already desperately out of date.

Why journalists need to linkFelix Salmon / Reuters
So while sometimes the failure to link is unavoidable, I look forward to a time when journalists face much more criticism for not linking to primary documents than they do for not linking to some other news organization which got the news first.