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Sunday, May 18

18th May - W/E: Geithner, Markets & Economics



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TIMOTHY GEITHNER
Geithner Confirms Mafia-Linked Berlusconi's Forced Ouster, But Says US Did Not "Have Blood On Our Hands"ZH

Lunch with the FT: Tim GeithnerFT
Over Indian food in New York, the former US Treasury secretary talks to Martin Wolf about future risks, crisis management, mistakes and misperceptions

Timothy Geithner InterviewVOX

Tim Geithner's Lack Of Nerve Drove Me From The New York FedBI
When I heard that Timothy Geithner was putting out his memoir “Stress Test,” I couldn’t help but to think back to the first time I interacted with him.

Tim Geithner: More Banker Than the BankersNew Republic
The Former Treasury Secretary's Unintentionally Revealing Interviews

This man made millions suffer: Tim Geithner’s sorry legacy on housingSalon
Forget the book tour designed to polish his legacy. Tim Geithner's record on housing will forever live in infamy

Out of Office, Geithner’s View on U.S. Exposure to the Euro Crisis ShiftsWSJ
Now out of public office, Mr. Geithner himself paints a far more dire picture in his new book “Stress Test” than the one he described as a U.S. official. The renewed turmoil in Europe threatened the U.S. financial system, Geithner wrote.

Tim Geithner on Charlie RoseGlobal Macro Monitor

The Ultimate "Two Wrongs Don't Make A Right" Interview: Cramer & GeithnerZH

The Paradox of Financial CrisesWSJ
Timothy Geithner: Aggressive government intervention will lead to a stronger financial system less dependent on the taxpayer.


MARKETS
The Trade of the Century: When George Soros Broke the British PoundPriceonomics

Up 75% In 31 Months Without A 10% DrawdownThe Fat Pitch

Chart WatchGlobal Macro Monitor

Can Investors Profit using Academic Research?dshort
http://advisorperspectives.com/newsletters14/Does_Academic_Research_Have_Any_Value.php

Citi On Bubbles, Broken Feedback Loops, & Bricks-On-ElasticZH

Reasons for the Bond RallyThe Reformed Broker

6 reasons treasury yields should be higherSober Look

Volatility breakout?Humble Student

Algorithms Beat Intuition – the Evidence is EverywhereTurnkey Analyst

ECONOMICS
  EUROPE
How the euro changed international debt flowsvoxeu.org
Large flows of bank lending from core countries in the Eurozone to the periphery lead to large financial imbalances. This column explains what motivated such financial flows. With the advent of the Eurozone, banks in core countries gained relative advantage in lending to the periphery, making such lending very attractive. They also served as intermediaries for financial flows from outside the Eurozone to the periphery. Now – five years since the start of the euro crisis – Eurozone financial markets remain segmented.

Stiglitz Against Austerity: For the Consolidation of EuropeAll About Alpha
Stiglitz seems to think the euro can be saved, but that the “structure” of Europe as a political entity has to change. His ideas for a reformed structure sound a lot like a consolidation of Europe into a single nation state.

  MONETARY POLICY
Which Flavor of QE?Macroblog
A drawback, in my view, of general discussions about the wisdom and effectiveness of large-scale asset purchase programs is that these policies come in many flavors. My belief, in fact, is that the Fed versions of QE1, QE2, and QE3 can be thought of as three quite different programs, useful to address three quite distinct challenges.

The exit from non-conventional monetary policy: what challenges?BIS
WP No 448. Monetary policies pursued in response to the financial crisis have shown that changes in central bank balance sheets have major macroeconomic consequences.The New Classical Macroeconomics, which gained increasing sway from the late-1980s, had led to an exclusive focus on the policy rate and a neglect of balance sheet effects.

Unbalanced in BaselKrugman / NYT
The BIS has spent almost the whole period since the financial crisis struck calling for tighter money. Oddly, however, it keeps changing its justifications for that call.

Inflation Targets ReconsideredKrugman
The 2-percent inflation target: financial crisis taught us economies are more likely to hit zero-bound than previously thought, and economic costs of that constraint are higher than previously taught. Solution is a higher inflation target.

  OTHER
Global Flows and Global GrowthProject Syndicate
Cross-border flows are claiming a growing share of global economic activity. But neither the extent of the global economy’s interconnectedness nor the changing composition of interconnections among countries and within sectors is well understood.

The odds you’ll join the ranks of the long-term unemployedWaPo

The Inequality PuzzleDemocracy Journal
Lawrence H. Summers: Thomas Piketty’s tour de force analysis doesn’t get everything right, but it’s certainly gotten us pondering the right questions.

Economists used to be the priests of free marketsQuartz
Now they’re just a bunch of engineers

Why Do Economists Still Disagree Over Government Spending Multipliers?The Big Picture