Previously on MoreLiver’s:
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Daily Interest Rate Monitor – Global Macro Monitor
Recap – Global
Macro Trading
The Closer – alphaville / FT
EUROPE
Soros versus Sinn: The German Question – Project
Syndicate
What Did Draghi Say? – Marc to
Market
Part of the
expectations game requires the belief that there is more the ECB can do. Without this expectation, the effectiveness
of the current policy stance is compromised.
No Resolution on Bank Resolution – WSJ
The debate about who
should take losses when European banks fail drags on.
Keynote address by
Yves Mersch, Member of the Executive Board of the ECB, Journée Boursière, Luxembourg, 6 May 2013
The euro, monetary policy and reforms – ECB
Speech by Mario
Draghi, President of the ECB, on receiving an honorary degree in political
science, LUISS “Guido Carli” University, Rom, 6 May 2013
PIIGS
Spanish yields and the ECB’s austerity defence – alphaville
/ FT
The rally in Spanish yields probably wasn’t about the deficit reduction
itself, aggressive though it was. The more likely explanation was the
perception that the ECB is, if not happily accepting, then at least
willing to tolerate Spain’s missing its budget deficits.
An update on Slovenia – alphaville
/ FT
According to two
senior eurozone officials, concerns have focused on “non-cooperation” between Slovenia’s finance ministry and central bank, which is
responsible for supervising the financial sector. One of the officials said the
central bank was being “obstructionist” towards the new government’s clean-up
efforts.
UNITED STATES
2s-10s, the update – Mark Dow
The downdraft that
started in March presaged the April volatility. It is a tribute to market
strength that we only got volatility and not a more meaningful sell off. It is
now turning up.
You Know The Market Is Frothy When... – ZH
BofAML’s latest
investor survey: rotation is not going to happen, asset bubbles biggest
concern, credit markets overvalued. Barclays: bad macro, asset prices might
snap back to them.
Flash Crash, Three Years Later: What Have We
Learned? – WSJ
Positive Reaction to Earnings This Season – Bespoke
Corporate Profits as a Percentage of GDP Hits
All-Time High – PragCap
ASIA
It seems that China has caught a developed nations' disease in
which stimulus no longer translates into improved growth.
The people and
companies I met during my visit to China were generally optimistic on the overall
economy. However, their mind-sets turned dark, when the subject was changed to
social matters, such as corruption, income inequality, heavy social burden and
pollution. This makes me believe that China has developed to a stage where growth is no
longer enough.
OTHER
EM Preview for the Week Ahead – Marc to
Market
Welcome to the post-BRIC world – Free exchange
/ The Economist
The political economy of structural reform in
the BRIC – DB
Research
The BRIC economies,
like most other economies in the world, experienced a slowdown in 2011-12. The
bears are worrying that this slowdown might contain a significant structural
component. These concerns seem somewhat overdone.
When Deficits Become a Problem – Tim
Duy’s Fed Watch
L. Randall Wray thinks
the Paul Krugman has made the leap to MMT by acknowledging the ability of the
central bank to control interest rates.
Wray sees that Krugman was faced with an intellectual roadblock to MMT… But
I don't see anything inconsistent between the Krugman of the past and that of
today.
Naive Fiscal Cynicism – Krugman
/ NYT
What governments don't
actually do.
More on Naive Fiscal Cynicism – Mainly
Macro
Paul Krugman is
absolutely right that one of the rationales for the IMF and others framing
fiscal policy in terms of the ‘speed of consolidation’ is a belief that left to
themselves politicians will always and everywhere let debt rise.