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Thursday, June 6

6th Jun - US Close: Don't Draghi and Drive



Quote of the Day: So the ECB is going down the 1990’s BoJ route. They are talking about price stability with Unemployment at 12.2% and rising. – Global Macro Trading


Previously on MoreLiver’s:

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Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
Europe: Bonds Plunge Most In 3 Months, Stocks Slump – ZH
US: Massive 3:30 PM Ramp Puts Silver Lining On Unprecedented FX Fireworks – ZH

EUROPE
EU-China trade war: Europeans, comply or else...Presseurop
China Daily, Beijing – Following the European Commission decision to tax imports of Chinese solar panels, Beijing has decided to launch a probe on European wine imports. And if the 27 do not get the message, other retaliatory measures will follow, warns the Chinese official newspaper.

  ECB
Mr. Draghi and the Key ECB Takeaways (So Far)WSJ

ECB afterthoughts: Tighter than expectedTradingFloor
The ECB left interest rates unchanged, as was expected, but the press conference was even more hawkish than predicted. The EURUSD looks like it has still further upside potential.

ECB comment: Short action: “yes”, long words: “well… not much”Nordea

Flash Comment - ECB meeting: Draghi warns politiciansDanske Bank (pdf)

Key points from the ECB press conferenceMoney Supply / FT

Recap: ECB Cuts Growth OutlookWSJ

Waiting for the recoveryFree exchange / The Economist

Draghi SaysMarc to Market

Eurosystem staff macroeconomic projections for the euro areaECB (pdf)

Press conference Mario Draghi: Introductory statement to the press conferenceECB

  IMF & GREECE
Draghi on the IMF and Greece: Hindsight’s a wonderful thingMacroScope / Reuters
The corollary of Draghi’s view is that it becomes difficult to ever admit to making a mistake.

Olli Rehn should resign for crimes against Greece and against economicsThe Telegraph
Nobody has resigned, or missed a day’s pay, or faced any kind of censure from an elected body, despite the withering indictment just issued by the IMF. Worse yet, the basic conceptual policy errors that led to this tragic episode have not been fully corrected.

UNITED STATES
Fed’s Plosser Calls for Too-Big-to-Fail Banks to Hold More CapitalWSJ
A U.S. central bank official repeated his dissatisfaction with current efforts to reduce the risk of too-big-to-fail banks, and said he instead wants these mega financial firms to hold higher levels of capital as a way of protecting the economy.

Dodd-Frank isn't close to implemented Wonkblog / WP

5 Things to Know Ahead of Jobs ReportWSJ

How Many Jobs Does It Take to Bring Down Unemployment?WSJ

Forward Markets: Macro Strategy ReviewThe Big Picture

  FED
Quantitative Quicksand Project Syndicate
The US Federal Reserve's expansionary monetary policy has failed to bolster demand and employment growth, while embedding inflation in America's future. Moreover, it has distracted attention from the real problems facing the US economy, which monetary policy is powerless to solve.

Inflation, not jobs, may hold key to Fed exitMacroScope / Reuters

Fed's Q1 Flow of Funds: Household Mortgage Debt down $1.3 Trillion from Peak, Record Household Net WorthCalculated Risk

OTHER
The dark side of homeownershipReuters
Owning your home, long a pillar of the American dream, could actually be bad for the economy. In a new paper, economists Andrew Oswald, of the University of Warwick, and David Blanchflower, at Dartmouth, found that rates of high homeownership lead to higher rates of unemployment in both the United States and Europe.

EMEA WeeklyDanske Bank (pdf)

FINNISH
EU-komissio kiistää jyrkästi IMF:n Kreikka-moitteetHS

Lehti: IMF vähätteli Kreikan säästöjen tuhojaHS

Kreikan velkasaneerauksen ehto: optio-oikeus Kreikan kaasuvaroihinVesa Kanniainen, Tuomas Malinen / US Puheenvuoro

EK ja nollasopimuksetValtteri Aaltonen / US Puheenvuoro
Tilapäistyövoima hoituu kuitenkin aivan yhtä hyvin tarvittaessa töihin kutsuttavien sopimuksilla. Nämäpä sopimukset eivät vaan Elinkeinoelämän keskusliitolle riitä, koska jo voimassa oleva laki rajaa niitten käyttöä juuri tilapäiseen työvoimantarpeeseen ja tosiassa EK:n tähtäimessä on ihan muu kuin tilapäinen työ.