Previously
on MoreLiver’s:
31.8. US Close: Bernanke's Apology (comments on Fed)
31.8. Best of August most read pieces + all my ’views’
31.8. EU Open
EUROPE
Credit Suisse: Analysing the ECB scenarios – ZH
Our central scenario is the Compromise Scenario
where the ECB cuts the Repo Rate to 50bp, keeps the Deposit Rate at 0% and
revises the collateral framework. We expect little new material information on
the front end SMP bond buying program. To us, this will underwhelm market expectations
and will lead to a modest rally in core markets.
Whatever route it takes, Europe in the coming
years will have to address the weak representation of the common interest – or
else admit that no such common interest can justify remaining on the path of
integration.
[Opinion] A fig leaf of continental proportions – euobserver
Efforts to solve the eurozone crisis EU leaders
are missing the wood for the trees. Instead real emphasis must be put in
constructing the foundations of a new political union, writes Petros Fassoulas
The French government suddenly announced the
nationalization of troubled mortgage lender Credit Immobilier de France, which
is also the country's second lagrest mortgage specialist after an attempt to
find a buyer for the company failed.
Bankia Gets 'Pre-Bailout' Bailout
"Immediately" As Bad Loans Jump 44% - ZH
Bankia, el banco malo – alphaville
/ FT
European
risks, aging mentioned, structural reforms suggested. (full pdf)
EUROPE: ECONOMICS
The optimal size of the European Stability
Mechanism: A cost-benefit analysis – CB
of Netherlands (pdf)
The use of the Eurosystem's monetary policy instruments
and operational framework since 2009 – ECB (pdf)
EUROPE: BANKING UNION
In the Picture: European banking union – The
World / FT
very good
rounup summarizing (and linking) tons of material
Banking union to put 6,000 banks under ECB
supervision – euobserver
The ECB will have the "ultimate
decision-making authority" on supervising 6,000 euro-area banks, a
commission spokesman has said. But Germany would like less banks included in the new system.
Governance of bank supervision is central to
its success – bruegel
The Commission should carefully consider
whether a different governance of banking supervision in the euro area might be
warranted. A small, yet heterogeneous committee, able to take swift decisions
based on a wide variety of views, appears central to effective bank
supervision.
Brussels Pushes for Another "All Powerful" Banking Committee, Headed
by ECB, In Spite of Objections by ECB and Germany – Mish’s
To become law, all 27 nations must agree.
Barroso hopes for a summit before the end of the year. In addition to unanimous
approval for such a position, I would point out that ceding power to Brussels is a change so
sweeping that Germany would require a national referendum, just as with the eurobonds idea.
CHINA
JAPAN
It's becoming clear that at this stage (similar
to the case in the US), the central bank
can do little to improve growth in any material way. Raising bank excess
reserves further via QE is simply not going to solve the structural issues
faced by Japan.
Nice long
article with links. Good for reading later, too.