Italy is definitely getting more
attention now…meanwhile, Cyprus is about to request a bailout, and Greece is again running out of money. It will be a fun summer. For the latest on "Bailando", see the updated Spanish
Bailout: The Collection.
News
Roundup – Between The Hedges
Markets –
Between The Hedges
Recap –
Global Macro Trading
The Closer
– alphaville / FT
Market
Commentary – A
View from My Screens
Tyler’s European Summary – ZH
Tyler’s US Summary – ZH
Market
Shrugs Off Dimon Premium As Treasuries Lead Risk Lower
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EURO CRISIS
The Greek Election is Irrelevant but FROB Isn’t
– TF
Market Advisors
Does the Greek Election Still Matter? - Evidence
suggests FROB is a major shift in the EU attitude - Italy is NOT borrowing at
6% to lend to Spain at 3% - Contingent Liabilities - JPM and the Whale Tale
The Absolute Moron’s Guide to the Euro
Crisis –New York Magazine
Central bankers vs. politicians: High-stakes
chicken? – MacroScope
/ Reuters
More to the point, if the FED or the ECB step up, yet again, to
protect their economies from the global slowdown, will it take U.S., German,
Spanish, Italian, Greek and other governments off the hook?
Commentary: The crisis could go from ‘Spanic’
to ‘Quitaly’ to ‘Fixit’
EURO CRISIS: BANKING UNION
Banking union in the Eurozone and the EU – voxeu.org
Is Europe ready for a banking union? This column argues that the current debate
is missing several key points. Chief among these is that much of what is needed
for Europe’s financial system is already feasible within the existing set up.
Hans-Werner Sinn: In blatant violation of the Maastricht Treaty, the European
Commission has come forward with one bailout plan after another for Europe’s distressed economies. Now it
wants to socialize not only government debt by introducing Eurobonds, but also
banking debt by proclaiming a “banking union.”
EURO CRISIS: GERMANY
Bond Market Debate du Jour: Whither Bunds or
Wither Bunds? – MarketBeat
/ WSJ
Pimco bond guru Bill Gross wrote: “German Bunds
join the maelstrom. Very few scenarios in which they do well. Only German exit
favors Bunds.”
slide in German bunds continued into a second
day and, worryingly, it was driven in part by worries about contagion after Spain’s poorly-received 100
billion euro bank bailout.
Hans-Werner
Sinn: It is unfair for critics to ask Germany to bear even more risk. Should Greece, Ireland, Italy, Portugal and Spain go bankrupt and repay nothing, while the euro survives, Germany would lose $899 billion. Should the euro fail, Germany would lose over $1.35 trillion, more than 40 percent of its G.D.P.
EURO CRISIS: GREECE
With Greece Back Down To Just €2
Billion In Cash, Zeit Suggests A Third Greek Bailout May Be Coming – ZH
EURO CRISIS: CYPRUS
A bailout, quick! – presseurop
It's been in the air for weeks — Nicosia is preparing to apply
for €3bn to €4bn in emergency funding from the EU in order to recapitalise its
struggling banks, highly exposed to Greek debt. But time is running out, writes
the English-language Cyprus Mail.
EURO CRISIS: ITALY
Italian Paradox: Italy is Borrowing money at
4-5% to Lend to Spain at 3%; Official Denials From Italy That Italy is Next – Mish’s
In retrospect the word "paradox" is
wrong. Ponzi scheme is more like it, and the scheme is ultimately backstopped
by Germany.
Austria's finance minister set off a row when she suggested Italy may need support.
Italian Bonds Back In The Crosshairs – ZH
After a few days in a row of Italian bank stock
halts, the implicit LTRO-driven relationship between banks and sovereign is
snapping 10Y yields above their Aug 2011 crisis peaks - at almost 5 month
highs.
Italian press gets behind Monti amid bailout
rumours – presseurop
Rumours that Italy, in the wake of Spain, may demand financial
assistance from the EU have been vigorously denied, in particular by the head
of government.
OTHER
Peak oil and price incentives – EconMatters
Here I describe some interesting new research
on modifying Hubbert's model of peak oil to take into account the incentives
for additional production that higher oil prices would be expected to bring.
Meine Damen und Herren – the government
guarantees – alphaville
/ FT
new OECD report estimating the value of
implicit sovereign guarantees for reducing the cost of bank debt…