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Saturday, May 11

11th May - Weekender: Linkfest





Previously on MoreLiver’s:

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EUROPE
Brussels blog round-up for 4 – 10 May – Europp / LSE
“Herman’s Egg”, Iceland’s strategic relevance, and reflections on Europe Day.

Spain is officially insolvent: get your money out while you still can – The Telegraph
The latest IMF Fiscal Monitor, published last month, comes about as close to declaring Spain insolvent as you are ever likely to see in official analysis of this sort.

Going global: Germany is slowly shifting its trade away from the EU – Open Europe
(or why German growth alone cannot save the eurozone periphery)

'Can't Call That Savings': German Central Bank Head Blasts France – Spiegel
German central bank head Jens Weidmann has strongly criticized French efforts to reduce its budget deficit, just days after the European Union granted Paris more time to meet EU requirements. He warns that French delays could damage the credibility of euro-zone rules.

Netherlands: 2013 Article IV Consultation -- Public Information Notice – IMF
Netherlands: 2013 Article IV Consultation – IMF

Europe: Good-Bye Austerity – BCA Research

Charlemagne: Enter Herr Präsident Schulz – The Economist
The head of the European Parliament wants the top job in Brussels

The IMF in Britain – The Economist
Toothless truth tellers: Chancellor likely to ignore IMF’s advice


UNITED STATES
When Will The Divergence Between PCE and CPI Matter? – Tim Duy’s Fed Watch
I suspect that at this point the Fed tends to think the costs of additional action still outweigh the benefits, and thus below-target inflation only induces pressure to maintain the current pace of QE longer than they currently anticipate rather than increase the pace of purchases.

Stability through instability – Free exchange / The Economist
This spring, the economics commentariat is discussing the relationship between monetary policy and financial stability. The concern that loose monetary policy might lead to financial excess is not a new one

*No Lehman Moments as Biggest Banks Deemed Too Big to Fail – BB
 “Because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes,” Obama said on July 15, 2010. “There will be no more taxpayer-funded bailouts -- period.” Investors, it turns out, don’t believe that,

The Multiplier in Action – Econbrowser

  MARKETS
Bernanke, Blower of Bubbles? – Krugman / NYT
All in all, the case for significant bubbles in stocks or, especially, bonds is weak. And that conclusion matters for policy as well as investment.

Weekend Sentiment Summary – The Short Side of the Long

Guidance Spread Negative But Inching Higher – Bespoke

Updated Q1 Earnings Season EPS and Revenue Beat Rates – Bespoke

  FED
Monitoring the Financial System - Ben Bernanke – FED
Bernanke Warns of Continued Financial Vulnerabilities – WSJ
Bernanke: "Monitoring the Financial System" – Calculated Risk
Bernanke warns on excessive risk – FT
The Unapologetic Regulator – CFR

Economists: Fed Will Taper Bond Purchases This Year – WSJ

The Hilsenrath "Tapering" Article Is Out – ZH

Previewing The Market's "Taper" Tantrum – ZH

Fed Maps Exit From Stimulus – WSJ
Timing of Wind-Down Is Uncertain, but Focus Is on Managing Unpredictable Market Expectations


ASIA
Investment and consumption – mpettis

Credit Shock Dead Ahead – ZH
China money formation soars to 2-year high as delinquent loans surge by 29%

China Poised For Surprise Rebound – Asia Confidential
Abundant liquidity to kick in * Other reasons for short-term uptick * Still a troubling long-term picture * Investment implications

Japan and the curious incident of the dog in the night-time – alphaville / FT
UBS’s Donovan’s point is that Y100 and above might not have the effect everyone hopes it will on Japanese exports, and through them, the economy.


OTHER
Balancing the Technocrats – Project Syndicate
Electoral cycles are such that monetary policy, banking, and many other areas must be regulated by those with professional competence and a much longer time horizon than that of politicians. But, if technocrats are allowed to determine long-term policy and set objectives, democracy itself is in serious jeopardy.

Buttonwood: Age shall weary them – The Economist
http://www.economist.com/news/finance-and-economics/21577414-productivity-challenge-rich-worlds-demography-age-shall-weary-them

Canada’s new central-bank governor – The Economist

The world economy: Shaken, not stirred – The Economist

Securities lending: Spring break – The Economist

Economics: Horror story – The Economist

Regulation: The bite is worse than the bark – The Economist

A pro-growth economic plan – voxeu.org
The world economy seems to be acting in unexpected ways. This column argues that austerity and quantitative easing do not seem to be working out as advertised. There is an urgent need to review the effectiveness of alternative macroeconomic policy approaches, and prepare an internationally agreed pro-growth plan to reflate distressed economies. The outlines of one such plan are presented.

Why Sovereigns Default on Local Currency Debt – PragCap
I’ve had a number of emails and comments this morning on this report from Fitch titled “The money printing myth – why sovereigns default on local currency debt”.  So here’s my view on their paper.
http://pragcap.com/why-sovereigns-default-on-local-currency-debt

Reasons for the latest US dollar rally – Sober Look

Sheedy on NGDP targeting and debt contracts – Mainly Macro

Weekend Reads for Financial Advisors – CFA Institute
Emotional Finance and Chaos Theory

What has"econophysics" achieved? – The Physics of Finance

  G-7
G-7 Focus on Bank-Rule Overhaul to Reduce Stability Risks – BB
Moving toward revamping banking rules and ensuring that any lender on the brink of failure can be shut down without threatening financial stability.

G7 to press on with bank reforms, Japan escapes censure – Reuters
Agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.

G-7 Vows to Avoid Currency Manipulation – WSJ

G7: US warns Japan to stick to rules on currency – The Telegraph
Japan is pushing the boundaries of international agreements to avoid competitve currency devaluations, the US Treasury Secretary has warned, as the International Monetary Fund said unprecedented monetary easing could lead to a "serious boom and bust".

  BLOOMBERG
Bloomberg CEO says client data access for reporters a mistake – Reuters
After reports that users of the company's financial terminals were investigating potential leaks of confidential information, Bloomberg LP CEO Daniel Doctoroff said that the company had made a "mistake" by giving journalists access to data on clients' terminal usage.

How to snoop on your customers, the Bloomberg way – alphaville / FT

Privacy Breach on Bloomberg’s Data Terminals – DealBook / NYT
Bloomberg News confirmed that reporters for its news service used the the company’s terminals to monitor subscribers’ usage.

OFF-TOPIC
What does nearly every genius have in common when it comes to work habits? – Bakadesuyo

Carbon dioxide passes symbolic mark – BBC

Science fiction novels for economists – Noahpinion

The Life of Richard Feynman – Farnam Street