Frontrunning: October 17

• Chinese banks fight for deposits (FT)... unlike those in the US
• Hong Kong Starts Trading Bullion in Yuan (Bloomberg)
• Can hyperinflation happen here? (Mauldin)
• G-20 Gives EU One Week to Fix Debt Crisis (Bloomberg)... make that 6 days now
• Greek PM calls for unity before reform vote (FT)
• Banks and insurers defend ‘liquidity swaps’ (FT)
• Greek debt write-down must be larger: German finance minister (Reuters)
• EU faces 20 years of rising energy bills (FT)
• Lack of ECB firepower weakens Europe’s Grand Plan (Telegraph)
• Deutsche Bank’s casinos exposure hits $4.9bn (FT)
• Beijing to Keep Yuan Stable, Premier Says (WSJ)
• U.S. Yuan Message Stronger Than Chance of Action (Bloomberg)

European economic update:

• Turkey Unemployment Rate for July 9.1% - lower than expected. Consensus 9.3%. Previous 9.2%.
• Norway Trade Balance for September NOK 34.1bn. Previous NOK 32.0bn.
• UK Rightmove House Prices For October 2.8% m/m 1.2% y/y. Previous 0.7% m/m 1.5% y/y.

Comments

[Ghordius]

I like "Lack of ECB firepower weakens Europe’s Grand Plan"

[Sudden Debt]

Oké, I'm willing to listen. What's Europe's Grand Plan?

[Ghordius]

there is no plan

don't tell anybody

all busy showing Timmy we nice little EU vassals trying hard to do his wishes

[Catullus]

Banks and insurers defend ‘liquidity swaps’ (FT)

Link broken

[Conrad Murray]

From the SHOCKED category: Fed audit due but impact likely to be muffled - http://www.reuters.com/article/2011/10/16/us-usa-fed-politics-idUSTRE79F...

[arnaud263]

the link for hyperinflation doesn't work

[kito]

go to dollarcollapse.com for the article link from the optimistic maudlin

[kito]

mauldin thinks the politicians will fix everything in 2013!!!! bwaahahahahahahahha

[Return2Sanity]

I thought the Mauldin article was great, especially his reprint of Art Cashin. While it's possible to disagree with Mauldin's conclusions, he gets kudos for hitting most of the relevant questions that need to be covered by serious contenders in the inflation/deflation debate:

• What kind of threats could result in expansive QE policies from the Fed even after they are faced with evidence of high inflation?
• What will happen when people realize that the promises that have made to them are mathematically impossible?
• Will legislation intended to undermine the independence of the Fed be successful?
• Will the deficit and debt be dealt with in a convincing manner before the bond market starts demanding a serious risk premium?

[haibop]

good points Rob Poulos

[AGoldhamster]

I think this is one of the most important weeks this year - major trend reversals to come:

http://hammystradingcorner.blogspot.com/2011/10/hammy-sticking-his-head-out-and-red.html

[Grand Supercycle]

SP500 daily chart now gives bearish signal, warning of a new leg down. Weekly chart reverts to neutral.

http://stockmarket618.wordpress.com