Estimated -0.5% effect on GDP. At current growth levels, not nice.
Previously on MoreLiver’s:
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap – Global
Macro Trading
The Closer – alphaville
/ FT
Tomorrow’s Tape: Incomes and Spending, and Sentiment –
WSJ
European Summary – ZH
US: Stocks Plunge To Red As 'All-Time High' Hopes Fade
– ZH
US
Sequester Triggered After Senate Rejects Two Proposals
EUROPE
Monti
warned that because economies take a long time to grow after implementing tough
austerity and economic reform measures, public opinion quickly turns against
the policies and the result is “the coming up of political forces that, of
course, oppose the right policies”
The Utter Fragility Of The Eurozone: Even
Democracy Is A Threat
– Testosterone
Pit
They all
document with their own words just how fragile the Eurozone has become. Every
little thing can break it apart. Democracy itself, instead of being a
fundamental strength, is seen as a threat: if the “wrong” party or an
anti-establishment populist or an anti-austerity billionaire gains the most
votes in one country, the entire 17-nation construct might break apart.
Italian election may have a silver lining – presseurop
Berlin and its allies can no longer count on loyal
supporters in Italy, or in Spain where the entire political system
is hanging by a thread, and run the risk of having no voice in those countries.
The dialectic of austerity and contrasting predictions as to the future of the
European Union should now be aired in public for the benefit of Europe’s
citizens…This is probably the last chance to save the facade of European
consensus, before it crumbles and falls, taking the entire building with it.
The income
account continues to show the effects of all that repatriation of government
debt that was sponsored by the ECB's 3-year LTRO programs.
Speech Yves Mersch: The European banking union
– first steps on a long march – ECB
UNITED STATES
SEQUESTER
Sequester 101 – MarketBeat
/ WSJ
The Sequester: Bring On the Pain – MarketBeat
/ WSJ
Republicans want to make the sequester better.
Why won’t Obama let them? – Wonkblog
/ WP
Wall Street on sequestration: Meh – Wonkblog
/ WP
Sequester Fester, No Cliff – Marc to
Market
ASIA
The Pope of Japanese Finance – Project
Syndicate
While the
world focuses on the gathering of cardinals in Rome to choose a successor to Pope
Benedict XVI, a similar conclave is underway in Tokyo to choose the Bank of Japan’s (BOJ)
next governor. And, as with the deliberations at the Vatican, politics, not doctrinal debate, is
underpinning the decision-making process in Japan.
OTHER
*Ten QE Questions – Project
Syndicate
Nouriel
Roubini: Most observers regard unconventional monetary policies such as
quantitative easing as necessary to jump-start growth in today’s anemic
economies. But questions about the effectiveness and risks of such policies
have begun to multiply as well.
Risk On, Risk Off Index – The Big
Picture
Plotting
High Beta, High Yield and Emerging Markets versus Consumer Staples, Health Care
and Low Beta names. When risk appetites are higher, it is reflected in the
ratio moving higher.
EMEA Weekly – Danske
Bank (pdf)
Commodities Update: Oil set for better flow – Danske
Bank (pdf)