Bespoke looks at world markets and anemic bounce

thanks to Bespoke who have a short article explaining the chart.

The Final Solution For CDS?

A fascinating article from The International Risk Analyst. Thanks to Fullermoney for pointing out this article and how scary this could be. I have traded derivatives for over 20 years and CDS are the scariest thing I have seen. No one in his right mind should make a habit of selling these things.
This article is very interesting and discusses a possible looming implosion in the CDS market triggered in Europe. Plus I love this quote:

"I believe that banking institutions are more dangerous than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."

Thomas Jefferson
Letter to the Secretary of the Treasury Albert Gallatin
(1802)

BCA: European Inflation Peaking?

From the Bank Credit Analyst: Euro Area Inflation Is Peaking

In a recently published Special Report we conclude that concerns about an upward spiral in consumer price inflation within the euro area are premature.

Economist: European Bond Spreads Widen

From The Economist:

The interest-rate spread between Germany's government bonds and those of other euro-area countries has widened sharply. The shift is most marked for countries with shaky public finances: Italy's public debt was 105% of its GDP last year; the ratio in Greece was 93%. Both countries are set to run budget deficits of 2-3% of GDP this year.

G7 and IMF should be Pay to Play

Developing countries like China, India, and Brazil want more say in the IMF according to quotes from this weekends G7 meetings.
Reuters:

WASHINGTON (Reuters) - Global finance chiefs on Saturday made progress on reforms that would give emerging economies a greater say in the International Monetary Fund and expressed confidence they could seal a deal next year. Under a plan backed by the IMF's policy committee, fast-growing emerging market nations would get more voting power in the global lender, which has long been dominated by rich developed countries.

Sydney Morning Herald:

Developing countries also took the opportunity to push for a greater say in the voting power of institutions like the IMF. Brazil warned bluntly that under-represented countries were likely to "go their own way" unless they get a greater stake.

Sounds like Brazil is getting a little uppity considering all the money they have taken from the IMF in the past. My suggestion is when the developing nations are paying their share of the fund thay can have a little more say. Or maybe it would be better to let them all go their own way. we haven't had to lend much money to Japan or France lately and so the US contribution to the IMF could be kept right at home. In fact, I would support the same policy at the UN (Useless Nations)