Happy Fridays. Today's market advice: remember Eddie Murphy in the movie Trading Places? See the video for golden market advice. Holiday reading-post coming soon.
Take it easy! - MoreLiver
Recap (22-Dec) – GMT
Global Call (22-Dec) – DJ FX Trader
Morning Briefing (23-Dec) – BNY Mellon
Danske Daily (23-Dec) – Danske Bank (pdf)
Market Preview (23-Dec) – Saxo Bank
Thinking About the Euro in 2012 – PIIE
During 2012, the euro area is likely to see a new and considerably more credible set of fiscal rules and budget oversight regulation. This has been a clear and understandable demand from the ECB and Germany. But while the new fiscal compact will undoubtedly help stabilize the euro area, it must not serve as the end of the institutional reforms needed by the region.
This failure, which has come after just over a dozen years since the euro was introduced, in 1999, was not an accident or the result of bureaucratic mismanagement but rather the inevitable consequence of imposing a single currency on a very heterogeneous group of countries
The Fed vs The ECB - Presenting "The Correlation Of 2012" – ZH
SocGen: In our view therefore, any increase in ECB bond buying is likely to come in the form of greater longevity rather than an increase in size, although the ECB may not acknowledge this explicitly.Strategic Briefing: The ECB Lends After All – The Capital Spectator
Summaries and links to eight articles analyzing the LTRO to death.
Q&A: The ECB’s three-year loans – alphaville / FT
Basically a ‘LTRO for Dummies’.
Basically a ‘LTRO for Dummies’.
ECB Bazooka is a fizzer – Macrobusiness
The outstanding question is exactly what the banks will do with this additional funds, on top of their other capital that is now available due to the lessening of the reserve requirements. If we see an additional €200bn turn up in the ECB deposit facility tonight then it is most likely that the banks have no interest in re-cycling that money through their sovereigns and the new year’s sovereign bond market is probably going to be ugly.
The eurozone crisis is not about market discipline – Dean Baker / Aljazeera
The crisis should be recognised for what it really is: a class war waged on workers in Europe. The people who gave us the eurozone crisis are working around the clock to redefine it in order to profit politically. Their editorials - run as news stories in media outlets everywhere - claim that the euro crisis is a story of profligate governments being reined in by the bond market. This is what is known in economics as a "lie".
Spanish Implosion Coming Up; Deficit Up, Receipts Down, a Need to Cut 40 Billion in Expenses from 90 Billion; Spain's "Hidden Deficit" – Mish’s
Are western central banks having an existential crisis? – alphaville / FT
World running out of super-safe assets started already in the mid 2000s – Greenspan could not understand why long-term bond yields were not responding to Fed rate hikes.