Quick Housekeeping Note

As readers may have noticed, Zero Hedge has had intermittent traffic spikes over the past several hours, causing occasional downtime. In order to reduce database loads, we have temporarily taken off anonymous comment entry, until the traffic and database queries normalize. Registered comments are fully enabled.

Capital Flows Over Trade Flows, Or Is Speculation The Primary Driver Behind The Euro's Move?

While the cynics tell us that the foreign exchange market is an ugly contest, with the best currency being the least ugly. None are beautiful. That seemed to be a fair description during the crisis, but it is less apt now. Instead, it seems that the race in the foreign exchange market is who can close the output gap fastest. The economic contraction created a large gap between actual output and potential GDP. As the gap is closed, real interest rates will likely rise and may help boost earnings. Those countries that grow relatively faster should have relatively stronger currencies. - Brown Brothers

Dutch Finance Minister: "Could Be Some Greek Support, But No Bailout"

Hey y'all. Some more headlines on that completely resolved (thanks Mario Draghi) Greek situation.

11:53 03/15 DUTCH FINMIN: NO BAILOUT FOR GREECE
11:55 03/15 DUTCH FINMIN:COULD BE SOME GREECE SUPPORT, BUT NOT BAILOUT
11:57 03/15 DUTCH FINMIN: ANY GREEK AID WOULD HAVE STRICT CONDITIONALITY
11:57 03/15 DUTCH FINMIN:WON'T SPECULATE ON WHETHER GREEK DECISION TONIGHT
11:56 03/15 DUTCH FINMIN: LOAN GURANTEES, BILATERAL LOANS UNDER DISCUSSION

Former President Of Just Failed Park Avenue Bank Arrested On Bank Bribery, Embezzlement And Fraud Charges

A former president of a privately-held New York bank, Park Avenue Bank, was arrested Monday on charges including bank bribery, embezzlement and fraud, a federal prosecutor said.
A source familiar with the case identified the banker as Charles Antonucci, who was president of the bank from June 2004 to October 2009.
On Friday, state regulators closed Park Avenue Bank, which had assets of $520.1 million and deposits of $494.5 million at the end of 2009, according to the Federal Deposit Insurance Corp.
The charges against the former bank president include self-dealing, bank bribery, embezzlement and fraud on the New York state banking department, FDIC and the Troubled Asset Relief Program (TARP), the statement by Manhattan U.S. Attorney Preet Bharara said.
His office said U.S. officials were to disclose more details at a press conference at 1 p.m. (1700 GMT) on Monday.
In November the bank applied for a bailout of less than $12 million under the TARP program but withdrew its application over concerns about restrictions on banks that receive taxpayer money, bank chairman Donald Glascoff said on March 10.

Morning Musings From Art Cashin

The game is on the table. We’ll watch to see if the bulls can break out from the January levels and excite sideline money. Or, will the bears have a goal-line stand and force a double top. Friday did not give us a clear answer. Stay tuned! - Art Cashin

Selling Of Treasuries Continues By China And Japan As UK, Oil Exporter, Hedge Fund Holdings Jump

The first just released TIC data, post the latest major annual revision, indicates that the two biggest holders of US Treasury securities continue to pare their holdings. We will present a more granular look shortly as the revision has made all historical numbers irrelevant, however the consolidated picture demonstrates that China sold $6 billion in USTs going into January, with Japan paring just slightly, at $1 billion. This was more than compensated by accumulation by the three other major players: the UK, Oil Exporter countries, and Caribbean banking centers, a proxy for hedge funds, whose holdings grew by a substantial $28 billion, $11 billion and $15 billion, respectively. The UK, which is most certainly a proxy for China, has seen its holdings grow by $100 billion in 4 months, from $106 billion in October to $206 billion most recently.