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EUROPE
They saved the eurozone; they just forgot to
save the people – vox
Nobody thinks the
eurozone is going to collapse anymore, and nobody thinks there will be a
worldwide banking panic. The only problem is vast swathes of the continent
remain an economic disaster area. They saved the eurozone, but not the
economies that it comprises or the people who live there.
Eurozone Fiscal Myths – Krugman
/ NYT
The euro zone: One currency, divergent
economies – The
Economist
Beware of europhoria – The
Economist
Stagnation and a
looming political backlash make optimism about the euro overdone
Ultimately, the crisis
highlighted that too much price convergence without economic convergence and
reform in the eurozone can actually be a bad thing, with resulting perverse
incentives and negative outcomes. While the price action in peripheral bonds might
not yet count as a ‘bubble’, investors and politicians would do well to
remember these lessons when interpreting the record low borrowing costs.
Expanding Influence: EU Parliament Has More
Power Than You Think – Spiegel
European voters
generally pay little attention to European Parliament, but over the years, the
body has become increasingly powerful. Already, a representative in Brussels
wields more influence than one in Berlin. And the gap is growing.
SMEs’ Access to Finance in the Euro Area: What
Helps or Hampers? – IMF
UNITED STATES
Dallas Fed’s Fisher: Low Rates Will Stay as
Long as Inflation Under 2% - WSJ
April’s jobs report
showed strong payroll growth across a variety of industries * The unemployment
rate dropped sharply, but more because of those exiting the market than to job
creation * Fourth quarter GDP came in below expectations, mainly as a result of
slower business investment and a weak external sector * Domestic consumption is
keeping pace, helping auto sales to reach prerecession levels
Macro Review: Positive But Moderate Growth – Fat
Pitch
The diminishing usefulness of the Fed Funds
rate – Sober
Look
ASIA
Shadow banking in China: Battling the darkness – The
Economist
MARKETS & ECONOMICS
The lure of shadow banking – The
Economist
Special report: International banking - Shadow
and substance – The
Economist
A non-bank by any other name – The
Economist
[video] Special report: Shadow banking – The Economist
Shadow banking
contributed to the financial crisis. But with better regulation, says our
correspondent, it could help reduce the severity of the next.
Global Macro Outlook 2014-15 – Moody’s
Role Reversal, as Advanced
Economies Emerge as Engine of Recovery
Is the Dollar at a Turning Point? – Marc
to Market
On the most basic
level, the key issue facing investors is whether the markets are at a turning
point. The dollar had looked like it was going to break down, with the euro and
sterling poised to have taken out the $1.40 and $1.70 levels respectively… Then,
the US dollar staged a strong recovery last Thursday and Friday.
Lars Kroijer on having a market edge – Abnormal
Returns
An excerpt from
Investing Demystified
Hedge funds, fortunes and merit – FT
Can't be bothered to read Piketty? Here's a
cheat's guide – The
Telegraph
What has worked in investing – Tweedy
Studies of Investment
Approaches and Characteristics Associated with Exceptional Returns
Global value chains and ‘Factory World’ – voxeu.org
Global value chains
play an important role in many nations’ globalisation and development policies.
Using a new indicator based on a global dataset – the World Input-Output
Database – this column shows that international production networks have, since
2000, spread across regional blocs faster than they have spread within them.
‘Factory World’ is still a work in progress, but the construction is progressing
rapidly
Inflation targeting vs. price-level targeting – voxeu.org
Inflation targeting
and price-level targeting have excited economists for decades. This column
reviews a survey on the merits of price-level targeting. The latter could
potentially help monetary policy deal with the zero bound on nominal interest
rates. Such beneficial effects depend on rational expectations and a New
Keynesian structure of the economy.
Fact, Fiction and Momentum Investing – SSRN
We aim to clear up
much of the confusion by documenting what we know about momentum and disproving
many of the often-repeated myths. We highlight ten myths about momentum and
refute them, using results from widely circulated academic papers and analysis
from the simplest and best publicly available data.
Momentum Has Not Been “Overgrazed”: A Visual
Overview In 10 Slides – SSRN
The return to
"momentum" does not seem to be the victim of “overgrazing”.
Conceptually, overgrazing occurs when too much capital chases too few
investment opportunities which in turn leads to low returns. The “equity risk
premium”, the “size premium” and the “value premium” seem to be getting close
to a no-man’s land of return-free risk. A high degree of belief in “the
kindness of strangers” could be driving the low equity risk premium, size
premium and value premium. A high degree of disbelief in momentum could be
driving what appears to be a trend large cap momentum excess return of about
7%.
OFF-TOPIC
The Ultimate Cheat Sheet to Become a Great
Negotiator – James
Altucher
xkcd: Randall Munroe asks “what if?” – The
Big Picture
The solutions to all our problems may be buried
in PDFs that nobody reads – WaPo
Call it Downton Abbey
syndrome: The newest trend among the world' s ultra-rich—like, royalty-grade,
private-plane-owning Scrooge McDuck rich—is to have a butler. But what type of
person would willingly give over his life to serving the outrageously moneyed?
As David Katz discovers, these are men and women with boundless grace, innate
propriety, and the wherewithal to quickly hide six hookers on a mega-yacht
What Happens When a Neurosurgeon Removes Your
Hippocampus – Wired
FINNISH
Täysimittainen
liittovaltio tai rahaliiton purkaminen – Paavo
Väyrynen / US
Poliittisesta
vastuusta – Piksu
Marko Karttusen väitöskirjan mukaan Suomen vei
EMUun hyvin pieni joukko poliitikkoja ja virkamiehiä. Omasta mielestäni Suomen
vei euroon tasan kaksi poliitikkoa, Lipponen ja Niinistö.
Negatiivisen
talletuskoron vaikutukset: Case Tanska – Nordea
Toukokuun korkokokouksen jälkeen muutimme
EKP-ennustettamme. Odotamme EKP:n nyt laskevan ohjaus- ja talletuskorkoja
kesäkuussa. Toimet painaisivat korkoja ja euroa alhaisemmalle tasolle.
Talletuskorko painuisi negatiiviseksi.
Tiedot
Irlannin toipumisesta liioiteltuja – Tyhmyri
Vientiteollisuuden työpaikat eivät ole
lisääntyneet