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| Artist: Javier Peñalba Cerrill |
– MoreLiver
Recap (17-Nov) – Global Macro Trading
Morning Briefing (18-Nov) – BNY Mellon
With the end of the week approaching, it is worth pulling together a few key developments in the Eurozone crisis.
Danske Daily (18-Nov) – Danske Bank (pdf)
FX option vols – Saxo
Markets Live – alphaville FT
Debt crisis: live – The Telegraph
EZ crisis Live blog – The World / FT
Playing Chicken With The ECB: The Market Has Issued A Boycott On Draghi Until He Prints – ZH
BoA: We are all waiting for the catalyst to a better or worse market - to us this means that the markets are now waiting for the ECB to step in… While the relevant time horizon is highly uncertain it feels more like a matter of two weeks than two months.
The Eurozone Crisis: How Banks and Sovereigns Came to be Joined at the Hip – IMF
Following the onset of the Subprime crisis in July 2007, spreads rose but mainly due to common global factors. The rescue of Bear Stearns in March 2008 marked the start of a distinctively European banking crisis. During this key phase, sovereign spreads tended to rise with the growing demand for support by weakening domestic financial sectors, especially in countries with lower growth prospects and higher debt burdens. As the constraint of continued fiscal commitments became clearer, and coinciding with the nationalization of Anglo Irish in January 2009, the separation between the sovereign and the financial sector disappeared.
Following the onset of the Subprime crisis in July 2007, spreads rose but mainly due to common global factors. The rescue of Bear Stearns in March 2008 marked the start of a distinctively European banking crisis. During this key phase, sovereign spreads tended to rise with the growing demand for support by weakening domestic financial sectors, especially in countries with lower growth prospects and higher debt burdens. As the constraint of continued fiscal commitments became clearer, and coinciding with the nationalization of Anglo Irish in January 2009, the separation between the sovereign and the financial sector disappeared.
Germany has drawn up secret plans to prevent a British referendum on the overhaul of the European Union amid concerns it could derail the eurozone rescue package, leaked documents obtained by The Daily Telegraph disclose.
European Bailout Fund For Greek Money Laundering And Fraud – Testosteronepit
http://www.testosteronepit.com/home/2011/11/17/european-bailout-fund-for-greek-money-laundering-and-fraud.html
Payback Time - The Coming Decade Of Deleveraging – ZH
Citi’s research note: debt needs to fall, asset prices likely to go with it, fixed returns beat uncertain ones, deleveraging is more difficult than you think.
New York Fed Swap Lines With Europe Increase By $390MM, Rise To $2.248BN – ZH
European banks need rescue funding from the Fed via ECB, as they are unable to access USD Libor at a far lower rate.
European banks need rescue funding from the Fed via ECB, as they are unable to access USD Libor at a far lower rate.
Monetization-Europe’s last option? – The Trader
Stratfor: But despite myriad disadvantages, monetization may well be emerging as the only tool that can preserve the euro, albeit in an increasingly damaging and distorted form.
The national election may turn over Spain's government, but the remedy on the way -- fiscal austerity as pushed by Berlin and the European Central Bank -- will only make Madrid's problems worse. Cutting will not save the euro.
Words of a Euro Doomsayer Have New Resonance – NYT
Bernard Connolly: The current policy of lending plus austerity will lead to social unrest and one should not forget that of the four countries we are talking about, all have had civil wars, fascist dictatorships and revolutions. That is history. And that is the future if this malignant lunacy of monetary union is pursued and crushes these countries into the ground.
The threat to use the printing press – Hans-Werner Sinn / voxeu.org
The first major crisis in the era of independent central banks is severely testing that independence – nowhere more so than the Eurozone. This column argues that the ECB is monetising the sovereign debt – a view widely held in Germany. It argues that the ECB is the Eurozone’s economic government with the power to enforce comprehensive rescue measures, up to and including a fiscal transfer union.
As the eurozone's biggest economy, it was Germany's job to stabilize the system when the first signs of financial trouble appeared. Instead, it did precisely the opposite. Whether the euro survives depends on Frankfurt finally assuming its role as leader.