Interesting rumors that ECB is planning to ease its collateral requirements to include credit portfolios specificaly to target the negative lending growth in PIIGS.
Previously on MoreLiver’s:
Special: Bailout of Cyprus (updated)
Roundups &
Commentary
News – Between
The Hedges
Markets – Between The Hedges
Daily Interest Rate Monitor – Global Macro Monitor
Recap – Global Macro Trading
The Closer – alphaville / FT
Tomorrow’s Tape: Central Bankers Everywhere – WSJ
Europe: Stocks Plunge, Catch Down To Credit – ZH
US: Stocks Slump Most In 6 Weeks; Bonds Best Close Of Year – ZH
Morning Briefing
(Asia) – BNY Mellon
EUROPE
Jan-Werner Mueller: In
recent years, the EU – or, more accurately, the powerful countries of northern
Europe – has been subjecting its weaker members to social and political “stress
tests," with varying results. Now, Europe's leaders must move beyond
austerity, and recognize that some countries need to renegotiate basic social
contracts.
Anders Aslund: The
costs of changing the rules from country to country are becoming excessive.
Markets do not know what to expect next. Politically, the effect of this
confusion of rules is likely to be even worse. The crisis is not over. Slovenia
will need a bank restructuring, and several IMF programs are ongoing. It is
time to settle for the rules outlined above and stick to them for all
countries.
Philipp Hildebrand: But
even though those reforms are the solution to many of Europe’s challenges, they
do not seem to be the focus of European debate. Rather, the debate revolves
largely around austerity
The IMF Shouldn’t Abandon Austerity – View
/ BB
Anders Aslund: For years, the IMF helped to ensure global financial stability. Lately it has changed its mind on what used to be a core principle -- and, strangely enough, it appears to have done so on the basis of a single far-from-convincing working paper.
Anders Aslund: For years, the IMF helped to ensure global financial stability. Lately it has changed its mind on what used to be a core principle -- and, strangely enough, it appears to have done so on the basis of a single far-from-convincing working paper.
Putin Offers 3-Month Offshore-Tax-Cheat
'Amnesty': "There Can Be No Untouchables" – ZH
Investigators from Germany’s central bank are scheduled to fly to New York next week as part of an inquiry into
allegations that misvaluing credit derivatives allowed Deutsche to hide up to
$12bn in losses, helping it avoid a government bailout
A Line Of Demarcation Through The Eurozone Is
Taking Shape – Testosterone
Pit
As opposed to the mere
hiccups of Cyprus or Greece. More banks and more countries will require bailouts—Slovenia, Spain, Italy, and Malta are on the list. And no one wants to see France on that list. Even Italy is too large to get bailed out by other
countries—though it’s rich enough to bail itself out, à la Cyprus
ECB
ECB Prepares To Subsidize Small/Medium
Businesses Next – ZH
The ECB is considering
ways to lower the interest rate burden for small-to-medium sized businesses in
the Eurozone's struggling periphery, German weekly Die Zeit reported Wednesday.
ECB Policy for a Fragmented Financial Market – Macro
and Markets / CFR
…the first best policy
response is a measure targeted directly at the market imperfection that
threatens fianncial stability, which in this case is the financial
intermediation channel in the periphery.
The question is then how best to create incentives for banks to lend to
these firms.
Firefighting in the euro zone – MacroScope
/ Reuters
What they have done is
they have solved a crisis by pumping in liquidity and then as soon as the
crisis is over they have taken the money out again. They are just firefighting.
PIIGS
Ireland:
Letter of Intent, Memorandum of Economic and Financial Policies, and Technical
Memorandum of Understanding – IMF
Italian Sovereign Spreads: Their Determinants
and Pass-through to Bank Funding Costs and Lending Conditions – IMF
UNITED STATES
Long-Term Sector Charts – Bespoke
ISM Non-Manufacturing Index
Service Sector
Expansion Slows – WSJ
Slower expansion in
March – Calculated
Risk
Weaker Than Expected –
Bespoke
Joins All Other
Economic Misses, Prints At Lowest Since August, Biggest Miss In A Year – ZH
Companies hire fewer
in March, service sector growth slows – Reuters
ASIA
Yen Shorts Getting Squeezed Ahead of BOJ
Announcement – WSJ
BITCOIN
The Bitcoin Bubble and the Future of Currency – Felix Salmon / medium
Bitcoin: Virtual currency gets boost from
eurozone troubles – euobserver
The eurozone crisis
and its latest Cyprus episode has led to a boost in the value of an
internet-based currency known as bitcoin, with Finns now the largest per capita
users.
When memory becomes money; the story of Bitcoin
so far – alphaville
/ FT
Here's a simple, 60-second primer on Bitcoin – Wonkblog
/ WP
OTHER
Investment Outlook April 2013: A Man in the
Mirror – PIMCO
Or read FT
alphaville’s summary.
Bungled bailout heralds shift in attitudes – John Kay
The belief that the
right response to the failures of Basel I and II is a more elaborate version of the
same global regime is a triumph of hope over experience.
IN FINNISH
EU-veronmaksajan
suojasta tabu – Risto
Pennanen / TalSa
Talletussuojaan kajoaminen on herättänyt
yllättävää kohinaa aikana, jolloin veronmaksajan taskuille mennään
sumeleimatta.