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Tuesday, May 28

28th May - US Close




Previously on MoreLiver’s:

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Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
Europe: Is This Why Europe Is Rallying So Hard? – ZH
US: 20 Out Of 20 "Tuesdays" For The Dow; Worst Day In Bonds For 19 Months – ZH

EUROPE
European Developments Ahead of the Annual Review of EU Budget RulesMarc to Market
In its annual review of compliance with its budget rules, the EC is likely to do four things. 1) end the excessive deficit procedure against Italy 2) grant an extension to Spain, France and the Netherlands in reaching the deficit targets. 3) France, Spain and Belgium will likely be criticized and urged to taking stronger strides 4) discuss the EU proposal to enhance corporate tax reporting

Under the EU’s proposed Financial Transactions Tax, non-participating member states may bear the burden of deeper tax integration without reaping the benefitsEuropp / LSE

Why Nonsensical Spanish Data Is About To Make Even Less SenseZH
Michael Cembalest, JPMorgan: Another Spanish Madriddle - should Spanish GDP data be taken at face value?

Markit Resumes Greek CDS QuotesWSJ

  GERMANY
Procyclical Policy for GermanyKrugman / NYT
Strange arguments against fiscal expansion.

Germany must lead by example on fixing its banksBruegel

Why a German exit from the euro zone would be disastrous – even for GermanyMacroScope / Reuters

Safety first – where Germans put their moneyNordea (pdf)
Germans are cautious (not only) when it comes to allocating their savings: 41% of financial wealth is held in usually low yielding bank accounts and in cash. Another 30% are claims on insurance companies. These numbers have been quite stable over time. Less than 20% of the wealth is directly invested into securities; and if so, many savers prefer mutual fund shares over single stocks or bonds. As only 11% of households own equities, they don’t feel much “wealth effects” when equity markets move strongly. That helps to explain why private consumption is quite stable both in good times and bad.

UNITED STATES
Presenting The Full Impact Of Stock Buybacks On S&P 500 "Earnings"ZH
Of the change in S&P TTM operating earnings between Q3 2011 and the just completed Q1 2013, a stunning 60% or $2.20, of all "gains" of $3.70 have been the result of buybacks.

Too-Big-to-Fail Myths, Goldman Sachs EditionView / BB
The largest U.S. banks keep rolling out new arguments to counter the growing impression -- among lawmakers especially -- that they present an unacceptable threat to the economy.

Case-Shiller: Comp 20 House Prices increased 10.9% year-over-year in March – Calculated Risk
Dallas and Richmond Fed: Regional Manufacturing Activity mixed in May – Calculated Risk
Real House Prices, Price-to-Rent Ratio, City Prices relative to 2000 – Calculated Risk
Case Shiller, no one could be iller – The Reformed Broker
It’s a REIT Bonanza Out There: Equity Volumes at Record Rates – WSJ
Existing Home Inventory is up 16.4% year-to-date on May-27 – Calculated Risk

Rally monkey peeks out of his box, wonders if it’s safe to come out – alphaville / FT
Consumer Confidence Makes New Bull Market High – Bespoke

OTHER
How can we spot a boom?Worthwhile
I used to think that if inflation was rising (or above target), we were probably in a boom, and if inflation were falling (or below target) we were probably in a recession. Now I'm not so sure about that, because the last recession sure looked like a recession, but inflation wasn't giving its usual signature.

FINNISH
Skinnari: Hyvä veli -verkostot tärväävät Suomen vientiäHS
Työttömyyden kasvu, viennin takkuaminen ja Suomen kustannuskilpailukyvyn heikentyminen nousivat keskiöön, kun eduskunta keskusteli vuoden ensimmäisestä lisätalousarviosta tiistaina.

Valtavirran ja vallan virran keskustelua valtavirtataloustieteestäAkateeminen Talousblogi