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Tuesday, May 8

8th May - US Open: Greece, Facebook, Flash Crash

Here are the regular US open links + select article links: Greece seems to be the most pressing issue, and seems we are back in the good old risk on/risk off-pattern. You can get update notifications by following ‘MoreLiver’ on Twitter or Facebook.

Daily US Opening News And Market Re-Cap: May 8 – RanSquawk / ZH
Frontrunning: May 8 – ZH
The Lunch Wrap – alphaville / FT
EM New York headlines – beyondbrics / FT
Daily Press Summary – Open Europe
  New Greek elections loom as coalition talks falter within hours; Necessary bailout funding in jeopardy

Overnight Sentiment: Straws Cracking – Bank of America / ZH
Morning MarketBeat: Don’t Yawn on GreeceMarketBeat / WSJ
Broker Note Briefing: Tuesday – WSJ
Morning Take-Out – DealBook / NYT
AM Dear Dairy: Honeymoon Over – Macro and Cheese
Uncertainty High, Dollar Firm – Marc to Market
The T Report: What do Natural Gas and Equities Have in Common? – TF Market Advisors

Pre-market Commentary – Marketwatch
Pre-Market Trading – CNNMoney          
Pre-Market – NASDAQ
US Equity Preview – Bloomberg
Earnings & Events – The Street
MarketCurrents – Seeking Alpha

Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank

Germany’s reaction to the newly elected French Presidentbruegel
How did the German press and blogosphere react to the results of the French election?

Blowback from Sarkozy’s Election Finance ShenanigansTestosterone Pit
Only Jacque Chirac, after he lost his immunity, was rapped mildly and symbolically on his aging knuckles when, on December 15, 2011, a court found him guilty of diverting public funds and abusing public confidence. He walked away with a two-year suspended sentence. So Sarkozy too might escape unscathed. But French reporters will continue to dog him. And voters have expressed their opinion—perhaps hoping that presidential history would, this time, not repeat itself.

Are there any alternatives to austerity? Six ideas for fixing EuropeWonkblog / WP
1) More inflation from the ECB 2) More stimulus from euro zone countries that are in sound budget shape 3) Open the bailout fund for bigger countries 4) Eurobonds 5) More fiscal integration 6) Countries could just start leaving the euro zone

Unless the EU adopts a growth compact soon...Re-Define
Without a growth compact, the social and employment crises in Europe will only get worse. With it, we have a fighting chance to emerge stronger.

David Rosenberg's Take On EuropeZH
This is quite a potent brew — financial insolvency, economic fragility and political instability… In sum, this is not the backdrop for sustained risk-on investment behavior… If we did a further overlay with respect to the most attractive "real yield" characteristics — low inflation and attractive coupons along with strong national balance sheets — we would find
Norway, Australia and Switzerland leading the ack.

Francois Hollande has ten weeks to avert a French bond crisisThe Telegraph
There will be no speculative attack against French bonds on Monday morning because François Hollande has been elected president, the first socialist to take the Élysée since the Mitterrand debacle of 1981.

Spain to Spend €7bn-€10bn (It Doesn't Have), Bailing Out Bankia, the Nation's 3rd Largest Bank; Liar, Liar Pants on FireMish’s
The only way Spain will not need a bailout is if it tells the Troika to go to hell, defaults on foreign-held bond, then exits the eurozone. Moreover, that is exactly what Spain should do, right now. Spain will eventually exit the eurozone anyway, so the sooner the better.

European Spreadwatch Alert As Italian Bank Borrowings From ECB Rise To New RecordZH

The beginning of the end game in Greece?Open Europe
Greece’s future will not be decided in the next few days but the coming weeks and months could well settle its place in the eurozone once and for all. This election may not provide many answers, as we expected, but it could mark the beginning of the end game in Greece.

More Greek elections?MacroScope / Reuters
So new elections next month are likely which leaves a very compressed timeframe and who knows what political landscape will result second time around. The EU/IMF/ECB troika is supposed to return in June and can’t negotiate on the next bailout tranche if there is no government. In any case, Athens is supposed to find 11 billion euros of extra cuts as part of the aid programme and none of the parties are in a position to do that as things stand.

The Greek crisis will fast expose Mr HollandeGideon Rachman / FT
The Greek problem is now so acute that it cannot be “fixed” through a few cleverly-drafted clauses, added to an EU treaty. It demands real, crunchy and dangerous decisions. Specifically, will
Greece press ahead and make further billions of euros worth of budget cuts, within months, as demanded by its most recent bailout deal? If Greece refuses to do this, then the IMF has made clear that it will not authorise the release of the next tranche in aid to Greece.

First coalition attempt fails in Greeceeuobserver

Two Years After The Flash Crash, Are Markets Any Safer?Forbes
…a cataclysmic plunge that seemed to defy all reason and pulled back the curtain on high-frequency trading for millions of investors who had no idea that computer-driven strategies account for the lion’s share of daily market volume.

The Flash Crash, Two Years OnNew York FED blog
What Caused the “Flash Crash”? - Trying to Make Sense of the Crash

“Where is Everybody?” The Reformed Broker
Allow me to be of assistance as to why there's no recovery in stock trading like there was after past recessions and crashes: They sold us out.  The NYSE and Nasdaq decided to go for-profit under the auspices of raising the money necessary to compete with foreign exchanges and other upstart trading pools. 

The Maturation of the Billionaire Boy-ManNew York Magazine
Incredibly, Mark Zuckerberg has grown up to become an ace CEO—one whose way of thinking might drive Wall Street nuts.

Facebook at 99 Times Profit Exceeds 99% of S&P 500 IndexBB
Facebook Inc. is betting its growth prospects will persuade investors to pay 99 times earnings for its initial public offering, a higher multiple than 99 percent of companies in the Standard & Poor’s 500 Index.

I Went to the Facebook Roadshow and I All I Got Was a BrownieTIME
The Facebook roadshow — the ritualistic presentation to potential institutional investors, a customary prelude to any initial public offering — came to New York City today, and with an impressive posse of security. “I’ve never seen anything like this — even at the White House,” one investor emailed from inside the ballroom.

“Wah, Zuckerberg is Snubbing Us, Waaaaahhh” The Reformed Broker
Wall Street crybabies need to STFU about the whole "Zuckerberg is snubbing us" thing.  Of course he is.  Because he doesn't need you, dawg.  You are an inconvenience, a necessary evil on his way to where he's headed.  An irritating little tax he has to pay, in both time and a little bit of money.

Weekly Market Commentary: Unbalanced RiskHussman Funds
With regard to current conditions, there is an absence of redeeming instances where things worked out well, coupled with an abundance of starkly negative market outcomes that have accompanied similar conditions.

Fortune 500Chart Porn
The 2012 Fortune 500 is out (which basically rates companies by revenue). I like this presentation of sales vs profits

US and Europe’s employment recovery: The Missing Enginesbruegel
Dave Altig from the Atlanta Fed recently compared sectoral employment growth in the US during two recoveries: the 2001 dot-com recession and the 2007 financial crisis.