Archive - Dec 10, 2012 - Blog entry
The Socialist Heart Of France Spits Out Its First Victim
Submitted by testosteronepit on 12/10/2012 22:06 -0500Nationalizations and protectionism have run into a buzz saw.
The US's "EU Style" Negotiations Will Take Us Right Over the Cliff
Submitted by Phoenix Capital Research on 12/10/2012 19:56 -0500
US leaders see that this strategy has worked for EU leaders (those who went along with it are still in office, those who didn’t have been kicked out). And so they are now adopting a similar strategy with discussions on the fiscal cliff.
IN CoMMeMoRaTioN oF a NoBeL FaRCE...
Submitted by williambanzai7 on 12/10/2012 15:19 -0500The Nobel Peace Prize, a must have accoutrement for statist propagandists...
THe PHYSiCaL IMPoSSiBiLiTY oF CoNViCTioN IN THe MiND OF a HeDGeFuND MaNaGeR...
Submitted by williambanzai7 on 12/10/2012 13:34 -0500Stephen A. Cohen: Life imitating shark?
10 Dec 2012 – “ Uh...Uh - Bingo Bongo ” (Adriano Celentano, 1982)
Submitted by AVFMS on 12/10/2012 11:58 -0500Surprisingly stable Risk. BTPs shot down in style. Italy? Down. Chinese data? Partially weak. Japan? In recession. French data? Weak. German data? Strong. Wow! Better have Friday’s PMI numbers really good. Analysts having to reinvent themselves once more as political experts to glare into a smoky crystal ball… Italian contagion contained, for now. Uh…Uh…!
"Uh...Uh - Bingo Bongo " (Bunds 1,30% unch; Spain 5,54% +9; Stoxx 2598 +0,0%; EUR 1,293 -20)
Shifting Trade Patterns will Reduce Target2 Imbalances
Submitted by Marc To Market on 12/10/2012 11:03 -0500The Target2 imbalances caused much consternation earlier this year as some economists focused on them as either signs that a transfer union was a fact on the ground, or alternatively, as a sign of the pending costs to Germany, which German politicians fail to acknowledge.
This Great Graphic comes from the Brussels Blog at the London School of Economics, who in turn got it from Place De Luxembourg
Much ink has been spilled trying to decipher the true meaning, but we know that the Target2 imbalances are nothing more or less than a reflection of the intra-euro area current account imbalances. Before the crisis those imbalances were financed largely by the private sector. That was part of the financial integration process whereby creditors would recycle their surpluses by primarily buying bond in the debt countries.
End of the World? Hear the 2012 Prophecy … Direct from the Mouths of the Mayan Priests
Submitted by George Washington on 12/10/2012 10:32 -0500Many Kids and Suicidal Teens are Terrified of the Bogus 2012 Hype. This Post Is a Public Service Announcement to Set the Record Straight ...
Bad Choices
Submitted by Bruce Krasting on 12/10/2012 09:13 -0500If two people are dying from liver disease, one 25, the other 65, and there’s only one liver available for transplant, the old one dies.
Two Economic Developments Every Investor Needs to Be Aware Of
Submitted by Phoenix Capital Research on 12/10/2012 09:05 -0500
We now have something of a capital freeze occurring in the US at the very same time that the primary pillar of EU stability (Germany) will very likely begin to pull back from providing additional aid (case in point, Greece is still waiting on receiving proposed aid from six months ago).
FX Themes and Drivers
Submitted by Marc To Market on 12/10/2012 07:01 -0500News of greater political uncertainty in Italy and poor European data is spurring risk-off moves, with the dollar and yen firmer, emerging market currencies mostly softer, global equity markets lower and core bonds a bit firmer.
Following much weaker than expected German industrial production figures last week has been followed in kind by disappointing French and Italian output figures today. Italy reported a 1.1% decline. The consensus was for a 0.2% decline and the Sept series was revised lower. French output fell 0.7%. The consensus was for a 0.3% increase. Yet it is really the Italian political scene that is the key driver today with the benchmark 10-year yield up more than 30 bp, dragging up peripheral yields generally. Italian shares have been particularly hard hit and a couple of banks were limit down and stopped trading.
This week is the last before the holiday mood sets in. We identify ten considerations that will drive the capital markets.
