It is the last trading day of the year and no-one will miss the 2011. On the other hand, 2011 probably has been much kinder than 2012 - but how much of the coming real-world carnage has already been priced to EUR, European bonds and CDS-prices? My guess is 2012 will be very, very bad year for people in the real world and less so to people living ahead of the curve - i.e. the markets. I plan to post a special year in review (and preview) during the weekend.
To the links:
News (Fri morning) – BTH
Daily (30-Dec) – Danske (pdf)
Briefing (30-Dec) – BNY Mellon
Preview (30-Dec) – Saxo
FX option vols – Saxo
Markets Live – alphaville / FT
Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
EURO CRISIS
Deepening Crisis Over Euro Pits Leader Against Leader – WSJ
This reconstruction, based on interviews with more than two dozen policy makers, including many leading actors, as well as examinations of key documents, reveals how Germany responded to the dangers in Italy by imposing its power on a divided euro zone.
French Unemployment Hits 12-Year High (It's Going to Get Much Worse); Sarkozy Outlines Jobs Plan (Mathematically It Can't Work); Olli Rehn to Give Keynote Speech at Eurobond Seminar – Mish’s
New Greek Government Runs Out of Steam – Spiegel
Six weeks after forming a transitional government to overcome its crisis, Greece is still failing to deliver its promised reforms. The cabinet of Prime Minister Lucas Papademos is deeply divided and has lost the public's confidence. Even the most urgent measures have ground to a halt.
Banks Bunker Hundreds of Billions in Deposits at ECB – Spiegel
Just before Christmas, the European Central Bank flooded the financial markets with 500 billion euros -- a move that may not ultimately have the desired effect of stabilizing banks.
2011 & 2012
2011 revisited: charting the year – The Economist
2011 in review...Top 10 posts – Wired and Ready
Mostly Greece.
Brace Yourself For An Eventful 2012 – MarketBeat / WSJ
OTHER
The Miracle of Solvency – Golem XIV
Deep inside every bank, dealers have been sitting, staring at their phones hoping the bank’s Risk Manager wouldn’t call them to ask what a certain trade they made this year was actually worth, what value should be booked for it and what risk weighting applied to it?
Former Deutsche Bank CEO Hilmar Kopper: 'Money Needs Laws' – Spiegel
As the former head of Deutsche Bank, Hilmar Kopper was once the most powerful banker in Germany. In an interview with SPIEGEL, the 76-year-old takes stock of his career and the current crisis shaking Europe. The three main constants he has seen in the world, he says, are "money, avarice and greed."
The government's analysis "extrapolated the bubble" – Sober Look
One can only interpret this production level above capacity as simply funded by credit, particularly real estate driven credit.
LIBOR - the rate at which banks won't lend to each other – Sober Look
The industry needs to find an alternative to LIBOR, such as term repo rates, commercial paper rates, or some other index where real transaction history is available.