ECB- and FED specials
posted.
Previously on MoreLiver’s:
Current Specials:
Special:
Reinhart & Rogoff Debacle (updated)
Roundups &
Commentary
Frontrunning – ZH
Overnight: "Buy In May, And Buy Every Day" – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Daily press summary – Open Europe
Morning MoneyBeat: Market’s Eyeing 1700, Not 1600, for S&P 500 – WSJ
Sterling is King for the Day –
Marc
to Market
Morning Briefing
(EU/US): Carrie – BNY
Mellon
The environment today is markedly different
from the one
eleven years ago that
sparked a flood of Japanese money into overseas markets.
EUROPE
ECB Preview: Rate cut and unconventional
measures? – TradingFloor
Juhani Huopainen: Consensus
is split on the ECB cutting the refi rate from 0.75 to 0.5 percent. It is
possible but would have limited effect on the credit crunch, unless it signals
that something else is coming - and soon. Look for
opportunities to short the EURUSD.
EU-based credit rating agency buried – euobserver
Plans to launch an
independent European credit agency have fallen apart after it failed to attract
investors.
PIIGS
It’s never fun being the little guy – alphaville
/ FT
Just as your risk of a
dodgy bailout is determined by your size so too, perchance, is your risk of an
odd ratings action. On Tuesday Slovenia’s credit rating was junked by Moody’s, forcing
it to call off a planned US dollar debt sale.
Italian PM launches opening salvo against
austerity – Open
Europe
…but where will the
cash come from?
Cypriot parliament narrowly approves bailout – Open
Europe
…deal but plenty of
hurdles yet to overcome
UNITED STATES
Dovish Fed Could Help Dollar Recover – WSJ
That’s because it
could benefit from rising fears about global growth thanks to its haven status.
ASIA
Where the Chinese credit is going – alphaville
/ FT
The question of the
country’s recent surging credit growth. The significance of the debt-to-GDP
ratio can be argued over, and it’s impossible to say at what level it might
become a big problem.
OTHER
Investment Outlook May
2013: There Will Be Haircuts – PIMCO
Yet if there are no
spending cuts or asset price write-offs, then it’s hard to see how deficits and
outstanding debt as a percentage of GDP can ever be reduced…These haircuts are
hidden forms of taxes that reduce an investor’s purchasing power as manipulated
interest rates lag inflation. In the process, governments and their central
banks theoretically reduce real debt levels as well as the excessive liabilities
of levered corporations and households. But they represent a hidden wealth
transfer that belies the vaunted phrase “good as money.”
Negative divergences – Humble
Student
I am seeing more
negative divergences that create more concerns for the bull case. The recent
rally, which has been led by the golds and deep cyclicals, have all the
appearances of a dead cat bounce rather than the start of a sustainable
advance.
FINNISH
”Uusliberalismin
kiroaminen ei vie eteenpäin” – Kansan
Uutiset
Jorma Mäntylän mukaan vasemmistolaista
politiikkaa pitäisi rakentaa poimien liberalismin aateperinnöstä
edistyksellinen ja käyttökelpoinen ja omaksua se. Sivuun pitää työntää
nykykapitalismiin soveltumaton.
Pohjoismaisen
hyvinvointimallin hintalappu Euroopan tasolla – Henri
Myllyniemi / US Puheenvuoro
Suomella on sangen poikkeuksellinen asema
eurovaltioiden saralla. Suomella on toki julkista velkaa (valtio ja kunnat),
mutta valtiovelan määrä on pienempi kuin Suomen tekemien sijoitusten määrä.
Suomen nettopositio on velan suhteen negatiivinen... Asemaamme voidaan toki
muuttaa liittovaltioitumalla euromaiden kesken.