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Wednesday, June 20

20th Jun - US Close: Mini-Twist

Bernanke just extended the twist. My view: 1) saving ammo for the coming euroshow 2) with limited ammo a threat is more credible than the action 3) understands deleveraging is a slow process. See my long post Announcement Games...  from last night and today’s earlier US Open - Waiting for 'The Beard' for more articles and my comments. The FED Watch has been updated with “after”-comments.

Markets – Between The Hedges
The Closer – alphaville / FT
Market Commentary – A View From My Screens
Tyler’s European Summary – ZH
  QE-Off, Reality-On But Merkel/Van Rompuy Save The Day (For Now)
Tyler's US Summary ZH

  Commodities Crumble As Stocks Only Stumble

Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

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Some light in the fogbruegel
The two main players, Germany and France, differ in that the second can accept further EU federalism only if it (first) sees effective crisis resolution instruments in place, while the first is prepared to accept the latter only after having secured the former. While this conundrum would lend itself to a very natural solution (do both at the same time, and quickly!) it also risks generating dangerous “chicken games”

Europe in 1931Econbrowser
the financial problems were a combination of a banking crisis-- I'm not sure the bank will give me back my marks-- and a currency crisis-- I'm not sure that, if I get my marks out of the account, they will still be worth as much.

Finland Throw A Wrench In Europe's RumormillZH
Finland will demand collateral for its share of emergency loans to shore up the Spanish banking system should the money come from the euro-region’s temporary bailout fund

Farage On Barroso: "He's A Deluded Communist Idiot"ZH

A Euroblather ArbitrageDealbreaker
Some of this is driven by legal possibilities, and much is driven by the difference between sovereign and bank bailouts – after all, you can take equity in JPMorgan, but you can’t really take equity in Greece.

Financial crisis is boom time for mafiaeuobserver
Italy's anti-mafia prosecutor Pietro Grasso drew attention to one of the lesser known aspects of the crisis at a hearing in the European Parliament's new anti-mafia committee on Tuesday (19 June). He told press: "The current economic crisis is making criminal groups even more powerful because they've got liquid cash, they've got ready money ... and not just in Europe, but in other countries where there are fragile economies and they can influence politicians."

Consensual Failure.Macro Man
As it is we are left hoping that Europe swiftly moves from consensus policy to a coalition, with strong delegated responsibility, as the hope of the European Parliament ever being able to make a useful decision seems as remote as the chances of a Greek taking personal responsibility.

Of trillions and trilemmasalphaville / FT
elected governments will attempt to intervene in the interests of stability generally and to protect their taxpayers specifically. They may not succeed, but it is their right and duty to try. Needless to say, your well timed trading strategies will not be allowed to get in the way. Short-selling bans in Europe and bond purchase penalties in Brazil are a foretaste of the future.

Generation €uro Award CeremonyECB
ECB gets down with the kidsMacroScope / Reuters

Learn These Words: ‘Pari-Passu’MarketBeat / WSJ
'The US Is Hypocritical when It Lectures Europe'Spiegel
The closing group photos from the G-20 meeting in Mexico show the world's top leaders smiling in a show of unity. But German observers say the happy family shots belie the serious problems the world economy faces -- and the mudslinging that went on during the summit. 

Another European Rumor Infests StocksMarketBeat / WSJ
Some journalists don’t have quite the level of standards that they should.

And Now We Ramp On This Latest Non-NewsZH
“Merkel says bond purchasing by bailout fund a possibility”. Uhm... that whole point of the bailout fund (ESM/EFSF) is to BUY BONDS.

LCH Hikes Italian Bond MarginsZH

Seniority in Spain, encorealphaville / FT

Europe's New, New MathMark Grant / ZH
If you stand far enough back you can visualize what is going on; “look at our firewall and do not pay attention to the countries which are having severe economic declines”…Bank debt, regional debt and whatever fancy schemes are proposed; Spain is going to have to be bailed out because they can no longer afford to pay their bills.

Scarcity amid plenty, oil editionalphaville / FT

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