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Thursday, July 12

12th Jul - US Close: Finnish line

Should Finland accept more economic responsibilities, if it would bring stability to the eurozone? That was the question the country’s national broadcasting company polled recently. Given that the question was loaded (if it would bring…), results were strictly against further commitments. This is something that even the euro-crazy Social Democrats and National Coalition parties currently sitting in the government can hardly ignore much longer. YES 22%, NO 66%, DON’T KNOW 12%.

Markets – Between The Hedges
The Closer – alphaville / FT
Market Commentary – A View From My Screens
Tyler’s European Summary – ZH
  Europe's Equities Catch-Down To Credit
Tyler’s US Summary – ZH
  Dow Down Six-In-A-Row As QE-On Hopes Fade Into Close

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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EURO CRISIS
Are Current Account Imbalances to blame for the euro disaster Economonitor
…the combination of a current account deficit plus a budget surplus meant that Goldilocks was going to get murdered by the necessary balancing item—an unprecedented sustained private sector deficit… Any EMU nation can be blown up by its banks even while running a current account surplus.

Six Observations about the Euro Marc to Market
Bearish on the euro

Italian banks: Heading for a Spanish scenario? Saxo Bank
Let me first explain the dynamics of a bank’s value by repeating one of the most important investment theses: Buying banks is about being long credit and leveraged 10-20 times.

Dummies Guide To Europe's Ever-Increasing Jumble Of Acronyms ZH
Acronym dictionary from Goldman Sachs.

Euro snakes and ladders The Economist
Europe’s leaders climb slowly upward, but all too often are then dragged back down

UK promises thorough analysis of EU by 2014 euobserver
The UK government has announced it will prepare a wide-ranging study of the EU so that any future statements about 'meddlesome' Brussels may be backed up by hard evidence.

FED / QE
QE3, the market functioning fear factor alphaville / FT
Bernanke back in June: …each of these nonstandard programs does have various costs and risks associated with it with respect to market functioning, with respect to financial stability, with respect to the exit process…

Monetary policy: QE sera, sera Free exchange / The Economist
In the bitterest of ironies, Mr Bernanke is giving America a Japanese recovery. He is doing so, seemingly, because pushing inflation temporarily above an arbitrary target is an unthinkable prospect, even though doing so would almost certainly, by his own convincing argument, have a huge impact on America's enormously costly unemployment problem.

QE, or not QE?The Economist
An assessment of the most controversial weapon in the central banker’s armoury


The Fed's Harmful Monetary Policy Reason
From a long-term perspective, the Federal Reserve is doing more harm than good right now to economic stability.

OTHER
Negative Interest Rates and the Currency War Marc to Market
Some observers have suggested this is a new front in the currency wars. While recognizing the competition between countries, this formulation seems to be an over-generalization. There seems to be at least three different reasons that have driven rates so low.

Macro Stocktaking Unearths 10 Questions Macro Man

For Stocks, a Big Line in the Sand MarketBeat / WSJ
Macro, earnings bad, but not bad enough for QE, and market sitting at technical levels.

US long term bond yields decline even further Kiron Sarkar / The Big Picture
Big market and news roundup.

This is the “China” you don’t want to invest in ASA

IN FINNISH
Hieman rahan arvosta – mistä fiat-raha saa arvonsa Tyhmyri

Euroalueen pankkipuutarhassa kilisee Sami Miettinen / US Puheenvuoro

Valtaosa suomalaisista: Ei lisäapua kriisimaille - enemmistö uskoo euron murtumiseen – YLE

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