EURO CRISIS
Merkel-Sarkozy Crisis Plan Shuns Steps Sought by Investors – Businessweek
Merkel and Sarkozy Recycle Old Ideas – The Source WSJ
“mad but clever idea from Gary Jenkins of Evolution Securities”
Eurobonds and the shadow of the future – alphaville FT
Analysis of the ECB’s weekly balance sheet.
Is the ECB starting to massively print money again? – economicpolicyjournal.com
“long-term investments would not be hurt, markets moving to low cost-jurisdictions not probable”
Merkel and Sarkozy are right about a Tobin tax – The Great Debate / Reuters
Nomura, Numis Securities comment the suggested Financial Transaction Tax. Expect details after a month and implementation in 2013. Oh yeah, and it would be “customer pays”. Risk to banks: lower volumes, end of high-frequency. Of course, U.K. would not join any of that nonsense, and all continental trading would simply move to London.
The Tobin Tax lives on – alphaville FT
Credit Suisse notes a recent modification in EFSF’s website that it can refund even before a euro member has submitted a support request.
Pre-funding the EFSF – alphaville FT
ECB is trying so hard to be credible and tough that everybody thinks they are mad
Especially crummy bank – Free exchange The Economist
FINANCIAL CRISIS
Competitiveness problems require deflation, which makes debt problems worse. Having your own currency helps. Debt vigilantes are not after countries with their own sovereign currencies (U.S., Japan)
Citi On The SNB Non-Intervention: Pegs Can't Fly, And Why FX Spot Market Intervention Is Not A Panacea – Zero Hedge
ZH’s take on the ECB’s liquidity provision to a bank. French? Italian?
Behind The Scenes Liquidity Scramble In Europe? One Bank Borrows $500MM In Emergency Cash From ECB – Zero Hedge
OTHER
Empires have fallen from a position of perceived strength
Could China’s Government Collapse Like the Soviet Union? - HistorySquared
Long and refreshing reading.
Warren Buffet’s hour-long interview on 16th after his “stop coddling the super-rich” Op-Ed. Main points: USA cannot go bankrupt, possibly high inflation, deficit is stimulus, rich need to pay more taxes, economy will avoid double dip, big problem in US is housing.
(youtube) Charlie Rose - An Hour with Warren Buffett – found on Pragmatic Capitalism
He’s a total BS guy,” says one. “He never pays tax because he never sells.” The manager notes that Buffett has agreed to leave his entire fortune to his foundation when he dies; this will result in no estate taxes being paid. “He’s not even charitable to our country,” the manager adds.
Hedge Fund Managers Blast 'Self-Serving' Buffett – Institutional Investor
“Current quarter earnings estimates are gamed and 12-month forward earnings estimates are getting worse over time. Use them in valuation estimates of the market at your peril.”
Understandings Earnings Estimates – The Big Picture