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Wednesday, July 17

17th Jul - EU Open: Ben's testimony today

Funny – just as the IMF has stated that the Commission is not fact-based, highly political, cannot admit its policy errors and that the IMF will not participate in lousy, stupid, untenable bailouts in the future, the Commission is quick to state that the IMF should leave the Troika. The Commission sounds like the girls I used to go out with – quick to end a relationship when they sense that the other is about to leave.

Of course, the Reding’s argument of lack of democratic oversight is ridiculous – the Commission is not answerable to anyone in practice. Her suggestion would only lead to a further increase of Brussels’ powers, and more policy errors based on the narrow interest and political bickering.

Meanwhile, there have been comments that the Troika should really be abolished – and the IMF should take the whole Europe under its program.

Previously on MoreLiver’s:

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News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT
Asia Morning MoneyBeat: Nibbling on Apps, Waiting for Main Course – WSJ
Europe Morning MoneyBeat: Caution Ahead of Bernanke, BOE MinutesWSJ

3 Numbers To Watch: UK labour, US housing starts, US 10-yr noteTradingFloor
The UK labour market report, followed by US Housing Starts and Congressional testimony by Fed Chairman Ben Bernanke, are among the highlights in today’s scheduled economic news.

Market Preview: Bernanke’s Congressional testimony in spotlightTradingFloor
European markets are expected to open mostly flat Wednesday. Investors keenly await the US Fed Chairman, Ben Bernanke’s testimony before Congress later today for hints on the timing of QE3 tapering.

Danske DailyDanske Bank (pdf)

Market comment – Bye, bye, IMFNordea
Core bond yields edge lower ahead of Bernanke – equities under modest pressure * Fresh inflation data not easing the disinflation concerns of some Fed members * Strong momentum continues on the US housing market * EU planning to kick the IMF out of Europe? * Bond bulls likely to be disappointed by Bernanke’s message * BoE minutes and US housing market data also followed

Poliittiset riskit ravistelevat europeriferiaa * Markkinat odottavat Bernanken lausuntoa


EU commissioner calls for troika to be abolishedReuters
EU Justice Commissioner Viviane Reding called on Tuesday for the "troika" of the European Commission, the European Central Bank and the International Monetary Fund (IMF) to be dissolved.

Italian PM warns of 'huge risk' that Britain leaves EUReuters
Italy's prime minister said on Tuesday that there was a "huge risk" that Britain would leave the European Union in the next few years and he urged other countries to work to reduce the prospect of an exit.

Some on Fed Want Thresholds Turned Into TriggersWSJ

The Fed Is The Problem, Not The Solution: The Complete Walk-ThroughZH

Just Four China ChartsZH

Frantic Rule-Writing Won’t Avert New Banking CrisisView / BB
The gain in safety from all this is likely to be small -- too small, probably, even to offset the danger created since the crash by greater concentration in the finance industry. Once the residual fear from the last crisis fades and the appetite for risk revives, financial systems might be more at risk than before, not less.

The market is not the best place to set a fair price for assets FT
John Kay: At Enron and in the banks, assets were marked to values set by biased traders