Previously on MoreLiver’s:
Special: Bailout of Cyprus (updated)
Roundups
News roundup – Between The
Hedges
Emerging Markets
Headlines – beyondbrics
/ FT
The March updates for
the PMI and ISM manufacturing indices are expected to bring encouraging news
for the US economic outlook. Meanwhile, US construction spending is projected to rebound
in today’s February release after a sharp decline for January.
EUROPE
The Politics of Moral Hazard – Bruegel
Jean Pisani-Ferry: The
crisis in Cyprus has shown that the true contest in Europe is less between moral hazard and financial
stability than it is between financially sensible and politically acceptable
solutions. But politics in Europe is
national, so what one parliament regards as the only possible solution another
regards as entirely unacceptable.
Why the Euro Is Doomed in 4 Steps – The
Atlantic
1. Too Tight Money 2.
Too Tight Budgets 3. Too Little Trade 4. Too Much Financial Interconnection
*Euro: Requiem or Renewal? – David Kotok
/ The Big Picture
Europe’s leaders face a fundamental question
regarding the euro. Do they want a requiem, in which case all they have to do
is keep doing what they are doing, or do they want a renewal, in which case
behavior must change credibly, immediately and decisively?
The Tequila Crisis: The Prelude to Europe’s
Economic Storm – Testosterone
Pit
"Saving" crisis countries is mostly saving your own banks.
Accounts at EU banks are 'a joke', warn
analysts – The
Independent
Poor disclosure means
depositors cannot tell if a bank is solvent, says credit ratings expert
“The Euro: Monetary Unity To Political
Disunity?” – The
Market Monetarist
Friedman’s article
“The Euro: Monetary Unity To Political Disunity?” from 1997 has turned out to
have been particularly prolific.
ECB
Blow for ECB as wider loan rates hit south – FT
Goldman Sachs’
interest rate divergence indicator shows companies in southern Europe are paying significantly higher interest rates
than northern rivals
The ECB and the Austerity Trap – Krugman
/ NYT
The EC obtuseness on
fiscal policy is derived in part from the broader European obtuseness on
monetary policy. Still, it’s quite a remarkable thing: we’re five years into
this crisis, and key European policy makers still talk as if they were unaware
of the central argument their critics have been making from day one.
FANG
Buoyed by solid
finances, roaring exports and low unemployment, Germany increasingly sees itself as the only grown-up
in Europe, responsible for bringing wayward children
into line to hold the family together.
Credit Suisse chart on
Germany
Dutch consensus for austerity starts to crack – FT
PIIGS
Italian President Giorgio Napolitano Denies He
Is Stepping Down After Phone Call From ECB President – Mish’s
The ECB clearly does
not want to take a chance that Beppe Grillio's Five Star Movement will win the
next election, so the pressure is on by the ECB for a different result.
Italian president at center of storm as
deadlock continues – Reuters
Italy's 87-year-old President Giorgio Napolitano will face the greatest test
of his career during his final weeks in office as he tries to end the standoff
preventing a new government being formed more than a month after elections.
UNITED STATES
Macro Report Economic Indicators - US economy -
March 2013 – Lighthouse
(scribd)
Something's not right about this rally – Humble
Student
ASIA
‘Historic' is an
overused word. But if the Bank of Japan meets expectations and embarks this
week on a radical policy shift to crush deflation, the meeting will go down as,
well, historic.
CHINA PMI
China March PMIs
rebound, domestic demand shines – Reuters
China Manufacturing Expands at Faster Pace, PMI Gauges Show – BB
China PMI Shows Modest Improvement – Mish’s
China PMI: on the up – beyondbrics
/ FT
OTHER
‘TEMPLATE’
GS: Visualizing 193 Years Of Currency Regimes
& Crises – ZH
Currency Wars For Dummies – ZH
Charts from Goldman
Sachs. Not only will every individual partly have to constantly monitor what
everyone else is doing, but in addition, there is a constant risk of escalation
into protectionist policies. Trade disputes are already on the rise. The number
of WTO dispute cases in 2012 was the highest in 10 years. Finally, the
extensive use of macro prudential policies and capital controls as observed in
recent years poses the longer-term risk of misallocation of resources.
‘I’ve been able to be me at Goldman’ – FT
Jim O’Neill, retiring
chairman of Goldman Sachs Asset Management and author of the “Bric” acronym,
has no idea what he will do after he clears out his office on London’s Fleet Street in a few weeks.
Cleanest Dirty Shirt Or Just The "Most
Hopeful"? – ZH
Around the world,
analysts and strategists are comfortable marking down expectations for British,
European, Asian, and Emerging Market nations but not the good ol' USofA…The
normalized forward expectations for EPS... Spot the odd one out!
IN FINNISH
Tämän
takia talletussuoja on meilläkin mielikuvakupla – Jan
Hurri / TalSa
Jos pankit joutuisivat meillä samanlaiseen
pinteeseen kuin Kyproksella, olisi talletusten turva yhtä heikko kuin
saarivaltion pankeissa. Rahat jäisivät nostamatta ja jumiin ties kuinka
pitkäksi ajaksi, vaikka talletussuoja on paperilla vuoren varma. Suoja kestää
pikkukupruja mutta ei kansallista pankkikriisiä. Samoin talletuksista vain
murto-osa on mahdollista nostaa kahisevaksi.
Kyproksen
kriisin pelottavat opetukset – Tyhmyri
Jumala suojelkoon pienten maiden kansalaisia
Emme
olisi mitään ilman EU:ta – HS
Kataisen
EU-visio vaatii eniten Suomelta – HS
Suomen
täytyy valita oma tiensä EU:ssa – HS
Yhdentymisen
ydin on politiikka, ei talous – HS
Euroopan
rauhalla on vakava uhkakuva – HS