Here are
the evening links for the day.
News –
Between The Hedges
Markets –
Between The Hedges
Recap – Global
Macro Trading
The Closer
– alphaville
/ FT
Market
Commentary – A
View from My Screens
Asian
Morning Briefing – BNY Mellon
Tyler’s US Summary – ZH
As
Reality Recedes, Rumor Rampage Returns... Redux
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EURO CRISIS
Paul Krugman on Euro Rescue Efforts 'Right Now,
We Need Expansion' –
Spiegel
Nobel Prize-winning economist Paul Krugman
argues that this is not the time to worry about debt and inflation. To save the
euro zone, he argues that the ECB should loosen monetary policy and the German
government should abandon austerity.
Before Germany’s banks pulled back their funds, they stood to lose a ton of money if Greece left the euro. Now
any losses will be shared with the taxpayers of the entire euro area --
particularly France, whose banks still have a lot of outstanding loans to Greece. Perhaps this is what
some German officials mean when they say that the euro area is better prepared
for a Greek exit.
Euro zone may struggle with its own Lost Decade – MacroScope
/ Reuters
People are talking that due to the lack of loss recognition, Europe is going to have a Japanese-style 'lost decade'.
SocGen’s Marcussen Says Euro Bonds No Immediate
Answer – BB (mp3)
EURO CRISIS: ECB
Euro Spikes On JPM Prediction Of 1-Year LTRO, ECB Rate
Cut – ZH
JPM: We suspect the ECB's first response will be in terms of new liquidity measures. The committment to supply unlimited liquidity at the regular refis (1-week, 1-month and 3-month) expires in mid-July and an extension of this should be announced at the June meeting… Of course, should stresses build in financial markets, the ECB would respond much more aggressively. In that case further 3-year LTROs and a reactivation of the SMP would come back into play, and further interest rate changes could not be ruled out either.
JPM: We suspect the ECB's first response will be in terms of new liquidity measures. The committment to supply unlimited liquidity at the regular refis (1-week, 1-month and 3-month) expires in mid-July and an extension of this should be announced at the June meeting… Of course, should stresses build in financial markets, the ECB would respond much more aggressively. In that case further 3-year LTROs and a reactivation of the SMP would come back into play, and further interest rate changes could not be ruled out either.
Presenting The Complete Fed/ECB Response Menu – ZH
JPM’s short lists of the potential policy
responses from the ECB and the FED
An ECB perspective on key issues of the crisis – ECB
Jörg
Asmussen, Member of the Executive Board of the ECB 24 May 2012
Mario
Draghi, President of the ECB 24 May 2012
EURO CRISIS: PIIGS
Euro Zone Developing Grexit Contingency Plan – Spiegel
With Greeks heading to the polls once again in
June, finance ministries in euro-zone member states are preparing for the
worst. Several media outlets are reporting that contingency plans are being
developed to prepare for a Greek exit from the common currency zone.
The PSI "Panacea": A Greek Asset
Neutron Bomb – ZH
Greek bonds trading below 12% of par, stocks down.
Greek bonds trading below 12% of par, stocks down.
Spain Plans to Merge All Nationalized Banks
Into Gigantic Bad Bank – Mish’s
Allegedly the merger of three cesspools into a
bigger, deeper cesspool will make the water drinkable. I have news for Luis de
Guindos: It won't.
Spanish Prime Minister Mariano Rajoy early on
Thursday called on the ECB to help lower his country's borrowing costs as a
matter of urgency… According to the country's central bank,
some €31 billion were withdrawn from Spanish banks in March alone.
HSBC’s View On The Big Four Emerging Markets – Forbes
EMEA Weekly, Week 22 – Danske
Bank (pdf)