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Friday, October 7

7th Oct - Failure is not an option

 
After today’s earlier guest post, here comes the first linkfest for today. Steve Jobs updated, follow me on Twitter and Facebook, or email me. Buy Aaron Brown's book – until someone of you buys the book and I can confirm it on Amazon, I will keep pushing the message. There is nowhere to hide, no excuses will suffice. To the right a week-old video on Greece by Stratfor,

Markets Live – alphaville FT
Debt crisis: live – The Telegraph
Eurozone crisis: live blog – FT
Debt crisis Live BlogThe Source / WSJ


News: Today's Headlines (Thu evening) – Between The Hedges
News: Friday Watch (Fri morning) – Between The Hedges
News: News That Matters (Fri morning) – The Trader
FX options: Vols, Risk Reversals & Pin Risk – tradingfloor


 
EURO CRISIS
Portfolio: Dexia Bank's Collapse and the European Financial Crisis – STRATFOR
Dexia is a good lesson. “Dexia, however, is not a normal consumer or business bank. Instead, much of its business comes from supplying credit to various parts of the Belgian state apparatus…

The 4 Trillion-Euro FantasyEconomix / NYT
Boone & Johnson: Huge financial packages not enough. Policies needed to stop the accumulation of debt and periphery must be made competitive with lower real wages.

Europe: Can You Say ‘Bailout’?The Daily Capitalist
“There is pressure on the ECB to not bail these banks out by buying their unsecured debt so they are mortgaging off their assets to cover their shortfalls. They bought $460 billion of bank debt during the original crisis in 2009. And guess what these banks did with the money? They bought Greek, Spanish, and Portuguese sovereign debt!”

Accounting for sovereign stressalphaville / FT
EBA has basically announced that they will not do the stress tests properly.

BNP Paribas, Société Générale and Commerzbank – a Greek tragedy?tradingfloor.com
EBA estimates 200bn capital shortfall in European banking system, and EBA’s estimates should be taken as very conservative.

Europe’s Banking Problem – The Big Picture
Excessive leverage and dependence on wholesale funding in one simple chart

Is Europe primed for chaos, as it was in July 1914? – Fabius Maximus
“If Europe crashes and burns (economically, not physically), future experts will see it as inevitable.”

Euro Rumormill Disintegration Begins As Reality Returns: France, Germany Fail To Reach Agreement On EFSFZH


GREECE
Warning: Greece Can Break Glass and Leave the Eurozone naked capitalism
Eurocrats generally refuse to consider someone leaving EZ because of costs of exiting, treaties prohibiting it and the operational mess. Analysis: costs of exit vs. austerity, treaties meant to be broken, conversion not hard – so Greece might very well leave.

The Greek Syndrome: A Prelude to Revolution? – EconoMonitor
Poland’s ex finmin and deputy PM condemns austerity and the European policy on Greece.

CHINA
Is Chinese Yuan Really A One-Way Upward Bet?Also Sprach Analyst
“You cannot have all of the three (fixed exchange rate, absence of capital controls, independent monetary policy) at the same time, but China is trying, leading to trade and capital acc surplus, leading to too much money.”

China's Investment ConundrumEconompicdata

More on Chinese InvestmentEconompicdata
 
#OWS
OWS keeps a wary distance from the Democratic Party – WP
What OWS Wants: Parsing the Unofficial Demands List – The Curious Capitalist / TIME
WWII Vet to OWS: “I Am So Proud Of All You People” – Washington’s Blog
Libertarian Wall Street Protesters Demand End to the Fed – Washington’s Blog
What the Wall Street Protesters Want: An Economic Commentary on the “Contract for the American Dream.” – EconoMonitor
 
DIVERSION
The End of the FutureNational Review
Peter Thiel: “Modern Western civilization stands on the twin plinths of science and technology.” Has the speed of sci/tech development decelerated, and is it why we are over-leveraged and thus nowhere?

Hiding Gold in All the Unusual PlacesBB
The reasons to buy gold often lead to not trusting anything or anyone.