2nd Sep Late - G.I. Joke

Summary: The Greek and Italian situation is getting completely out of hands, it is now a "G.I. Joke". The troika of eurocrats and IMF were called back from Greece, the independent auditor of Greek budget austerity was fired, Berlusconi is a complete joke, Italy has cancelled the most important austerity measures. Banking system in Europe in the same sorry state and nothing done. The situation is not much rosier outside the euro area. Global recession is practically confirmed, but not officially. The banking system in U.S.is about to face the hatred of the government. Very good links today, don't miss the Goldman Sach's research note. 

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EURO CRISIS

The Economic Consequences of Greece – Morgan Stanley

Summary of the above + scribd link to full paper with charts at Zero Hedge

Greek bailout mission to come back for second try – euobserver.com

Brussels tight-lipped on fresh austerity demands amid row with Athens – euobserver.com

Greek execution risk, and the bond swap – alphaville FT

EU commission lacks faith in Italy crisis response – euobserver.com

Greece Has Its Fill of Austerity – The Source WSJ

Italy Backs Down on Austerity Measures; Bank of Italy Warns Tax Hikes Needed; German Central Bank Complains EU Treaty "Completely Gutted" – Mish’s

Berlusconi Risks Drawing Italy Back Into the Mire – CNBC

Berlusconi vows to leave 'shitty' Italy in conversation recorded by police – The Telegraph

Couple arrested on charges of extorting Italian premier Berlusconi – Deutsche Welle

Short list of some key issues, nothing new but good to check you remember all the pieces

Remember European Problems? They're Baaaack – Zero Hedge

FINANCIAL CRISIS

Goldman Sachs released a special report two weeks back to its best clients. Here’s a copy.

Goldman’s doom-mongering eye-bleeding slide deck – alphaville FT

Just what the financial sector needs: the government is coming after the banks after all. Links to major articles on Friday covering the events and discussion.

US government attempts bank raid – alphaville FT

Response to a recent academic paper.

Financial Complexity, Part 1 – The Aleph Blog

Stiglitz’s power point presentation at the Nobelist meet in Lindau one week ago

Crisis, Contagion and the need for a New Paradigm – the trader

True unemployment around 16.2%: “Things are much worse than the reported numbers would have you believe. Moreover, the unemployment rate is barely better than it was a year ago. It would actually be worse than a year ago were it not for people dropping out of the labor force.”

Zero Jobs Growth, Unemployment Rate Flat at 9.1%; Charts, Graphs, Details – Mish’s

OTHER

One-Month Individual Stock Return Reversals and Industry Return Momentum – SSRN

Working paper on debt levels. Debt is good up to a level, after that it’s bad.

The real effects of debt – BIS

Update from the task force. Principles for designing and implementing regulatory measures

Shadow Banking - progress and next steps – Financial Stability Board

Rennaissance Technologies is simply the best money manager ever.

The Super-Elusive RenTech Is Up Over 25% YTD – Business Insider

Renaissance Defies August Doldrums - DealBook

The Mystery Behind Jim Simons’ Amazing August Returns – Insider Monkey

DIVERSION

Forecasting forecasts by companies that are trying to forecast consumer behavior, to help consumers get better deals. Confused? Read this.

And now, the gadget forecast – Babbage / The Economist

Physicists & economists, influence & responsibility – Emanuel Derman / Reuters

SEC Is Going To Take Your High Frequency Trading Algorithm, Run It On A Commodore 64, See If It Crashes The Market - Dealbreaker

Review of F.S. Michael’s book.

Monoculture: How Our Era’s Dominant Story Shapes Our Lives – brain pickings

Speculation how the Google/Motorola’s droid phone will be

Lord of the Droids – technologyreview.com

The Black Hole of 9/11 – Foreign Policy

Einstein the Realist – Project Syndicate

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