Italian's Job: Premier Talks Tough in Bid to Save Euro – WSJ.com

Only the ECB has the necessary firepower to move the market. Senior German officials say the ECB’s help is what [Italian premier Mario] Monti has really been after all along. The Italian leader is convinced that the June 28 summit provided political cover for the ECB to take bold action, in the knowledge that euro-zone governments—including Germany—won’t oppose it.

“I have no doubt that the night before the disintegration of the euro, the ECB will do whatever is necessary to save it,” Mr. Monti says. “The question is: Do we need to get to the night before?”

via Italian’s Job: Premier Talks Tough in Bid to Save Euro – WSJ.com.

The Olympic spirit

Who said this about the Olympics?

The sportive, knightly battle awakens the best human characteristics. It doesn’t separate, but unites the combatants in understanding and respect. It also helps to connect the countries in the spirit of peace. That’s why the Olympic Flame should never die.

None other than that icon of world peace, Adolf Hitler. The next two scheduled games, 1940 and 1944, were cancelled while he extended the “spirit of peace” around the globe.

The Nazis hijacked the 1936 Olympic Games as a massive PR exercise. The torch relay doesn’t date back to ancient Greece at all. It originates from Nazi pageantry — introduced by them in 1936 in an attempt to draw a connection between ancient Greek civilization and the Third Reich. The 1936 medal count illustrates their success in whipping up nationalistic fervor.

1936 Olympics Medal Count

Source: Wikipedia

Other countries have since attempted to emulate the Nazi feat, pouring millions of dollars into sports development in the hope of improving their medal tally. The medal count, given such prominence by international media, goes against the spirit of the ancient Olympiads, whose focus was on athletes competing against other athletes. Countries competing against each other evokes the exact opposite of the spirit of peace.

In addition, we have commercial sponsors attempting to align themselves with the Olympic Games. Will Anderson, host of Gruen Sweat, a four-part ABC series, sums this up:

The London 2012 Olympics — where the world’s most competitive brands come together to fight for glory and gold — mostly gold …… The orgy of selling starts before the games even begin.

The spirit of the games was expressed by Pierre de Coubertin, founder of the modern Olympics:

The most important thing in the Olympic Games is not winning but taking part;
the essential thing in life is not conquering but fighting well.

To find the true spirit of the Olympics, look no further than the athletes. Not the medal count or the sponsors.

In every act observe the things which come first and those which follow….
If you do not, at first you will approach it with alacrity….
but afterward you will be ashamed.
A man wishes to conquer the Olympic games….
But observe the things which come first and the things which follow….
You must do everything according to the rule:
eat according to strict orders,
abstain from delicacies,
exercise yourself at appointed times, in heat and cold,
you must not drink cold water,
nor wine as you choose….
And sometimes you will strain the hand,
put the ankle out of joint,
swallow much dust,
sometimes be flogged,
and after all this be defeated.
When you have considered all this,
if you still choose, go to the contest.
If you do not — you will behave like children,
who at one time play as wrestlers, another time as flute players….
but with your whole soul you will be nothing at all.

~ Greek sage and Stoic philosopher Epictetus (AD 55 – AD 135)

Olympic highlights: Oscar Pistorius runs second in Mens 400m heat

South African athlete Oscar Pistorius, who had both of his legs amputated below the knee when he was a child, became the first double-amputee to compete in the Summer Olympics. Running in the first heat for the Men’s 400 meters, he finished second, advancing to the semifinals. Unfortunately he failed to make the final, but his effort is truly inspiring.

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Olympic highlights: Ye Shiwen wins gold in 400m IM

China’s 16 year-old Ye Shiwen swims an amazingly fast final 50 meters to beat Australia’s Alicia Coutts in the Women’s 400m Individual Medley.

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Olympic highlights: Michael Phelps wins his 17th gold medal in the 100 Butterfly

Michael Phelps wins his 17th and penultimate gold medal in the 100 Butterfly:

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SY8vwJ-v-Kim0A2TcY99bVy-vu0L_GuFt3lygxu10pMW6_jlwrY-WnohMaKWViLVJoAA93YX7pwhr_NbcULcLVCqFP8VJ-LWZV5lzHGvWASkM7MCvenFncCltJi8JCG9Xedk0JMJReCkrkw5PNp0Nku1yjlS9C5wDZJk3kxOgEy9PDJrOxTqcYFJ3gzqm-9S03_t-R4O8_Y7YO09DNn5jzeuyH4Xdy_3Dj-e_MI9ERb1HjhZEawJomAWmznVn8XXh6ViF0tdheIAkK6SObdHC43KaZ-tUQ_nbZc_3FYOxPgm-HCLLVPxI1KFkreE4XZURg3uD5x9Gr6zzFRl-OS6SGkNvA6iKK4co-D1jAXAidjRqMhNPvtq1g1QdYpyDrBpbJAEc8DABpEEMHWeV_4H9QCNnHLOKCzbPOUH0120m0YKpIf2oAbXl8NwG7m6rTwzFKzvhmKUAEY6lqtlq97wWVCmQFsLftpJ7iluFbO9mSpbyjKDmUPzWdMo91_7D36xRy-LCYrQO14bzTXIPgtr6qt_LmIjFJborMKNfDdM6mu4-cUWPVbHDHZbH8mWmH-XXFDyJvFvl6cg6mCIlUDlr5-5VHDflWaNbcgI2qz1bV3j3fOjyBpdG-Oex_V47TcgU9Dp2A7lqsGUYcOwA5scyeI4WulCOVNcBDsxYJkS6voBsPd57P_k7Oak7wNLbqq6CtyTwd1E6TchENpPHshBEbqKRXhaoCYM8BSiXCywdoikX3R5zlZm1vzJwaY2sNLjAjj_w87GmIFRrIjqc7CmNqHzG00B2ky0ejfWUGGNX7D9y1bkxYVdrvFpb-wk1p7kehpxJBFgz_c2y7eZazkOryKQCZ6pEZ1yW3g_GOBdMYgkwgoqScHnVZBfD74-zazj4KYFg8YFvOXViy8Rcb3B1pixA7WSpVpESIC3a9AEACwvp1C4KXYG8nwE3gZBEbWKXw6rjwOVL7xOqJtiiN3zTGR0LNFGJAX6ipHag-jU87pva_aF58HcVEyCR-5zwvw98-S7wg9Bah1yxp1os4uYKPFj6vT2Eaw5mWvr4JU4DOv40z0hg9x55UFVdGi3f14VSyk9GKXQ4381H5OL3lnMAz3T3enEHsGH6a2HYj6KzibMYxxlM0zy4_qqpHqqDy0v_Y8jKx9YfqSYTNcFumf1McKN8Kh4YqGVR8hNme7Chn3KiZ8yU9_yyiJizIWVWXY703VkYypIQVVhQDMmNHugajkjiwWAbp9WMZ3eaLLiQnX22_y30VoYV2ymN58RxKmJF3SsTGEBmkGdX3sWEMkvdWj4Iu9J6UZZE2NFDaEO5l_grDW_TGAEvTqc8gcxcNpCNRJ9HdUJpggj6G8Db2mmX5-4a0ht8bf_S9zIWnqRENLhycoj6yQdhqPY7OIvw0fvfjNPJagVzHSs-32A13BwTzb-pvwZ56eafj7bGlZHOM69XVb7rc2BDxlpN08f_rEs10J0O2SV6fPRKKGWfvI1dd3dOt-GiHXVmNW1nQ5bV_dhrqDL846pf4XXck_jqdAvbzTFTQl8QH8J14Jp0wOfx-6512dgTThwGsyDDrutuw_iaqyY-Y8vgAK_FoIsr-1PjASqEmwZ0Q3cb_Be1eYmJZ1lvRMhDi15YQXSAPsf3hPsVPHaKtOexdTYKdTAXdzVwDiCD87GxiKPcZcmL9y1Lnny0B-dzACs0ZV4tuxcRG_BDal_oSMe79YpFQfsHUq1xnWX-ZAih_ZI1T5_RWyquee7Ses457FBUKVA40iWP1jSvK0jTjdLbXw8b8E3EwucKvF3TPssA91aoJyMn4y2GK8qf5vVl2hcoHIC_3FokqkdNiyS_gHf37Tk2678nai1MhUm5WxnQa1Zb-128JzqcykX6g6vO9oOVCOqT67sSKKRyxq3zBWZYyek7f_xc5xMOWoY6Mw82sKCXVEeCDVdyl4JUj3-BMgCzoLdQDj1yV1KbGWf1nJhXNldEkk4yKb8-uiFX3e-0MSEMvRhCJx92x-gT22UhFhfe6cga7YYackH6AClpUwmIM0BC-A2iw5s3pOLB8Fg7LdVqTBEUcCH-QFblamlSM_5wvhPCGaGcLcKcQnOoA0mIUlqEQLtH80M5maG_wvLaw459gbnihMMkchRa8tBj30_p5l9sq0pfVvfbWQkRE6ls7XgFOrEFe-OI6i3f0WQMlhEb8TFhV3-hT6ot_UMBS6cjmB3j8ZyiZAZhcLtOgwG_63a_2rAyc8kLf0gyhU3ztkXgYTtGTOiU_hkAMW3Fhso5y1A39StD9LKG0BR3Mft75ziORwyjekHDlNvYzR_FbdbIh8NmJbEE3e2H0q0ODFdwM_B5w-MuSElImRo_F9X0FXoFq8820eOM4EWejB7Gd6xjqBznrO1S_ffPJnCadttxlUffrNciYiv4VdwuOJjORXoIF4VFsjaBXqTGXas1C-WD5naSWK02z9QlvE7zfMOe8XsO97nMg4d-THazUo6HX9Z1EB6Eo88g1xP2wzKJHziI5lUXfPQGH16TNRshjlfipjAkJX0Vju2jJa0proi3OODrHewk8tL5–vSzKCgco1udT8xXEF-bR–JvwiytFbxGq0SZ6kYe5EKlnHOphMK4BxPz2sOOpIDbmn7RFSOUAHyW6QJP9SGtGr5lJtg_9cayvrWOAc6hYKjEB5uDPnkDgrHFhdM4jNmqcJBrLy84WbKxONiaauu7ktB_YcBreHasx4hZADxrwCYOVCSQatZRX4emtHR7AGjCHkrLr2jmYq1VcM5M0MOz9kNsu7jxt3Jn9JnDkrAGav1kG0L7fTVbEGhLNQGcvhYwpQP8veUqB9RRJz0W40jz9yJWEZGdPtPKnlASA_a7CIn6PR35VopX1YPFV1AK392EAOQRIR-uTq0tRMKuRXYaNPWPMhrG2imxyhvaf4oUrmYT0DLzcYWDerZWZpEH1pUynfUyOImyMnN0zbvLjjaehbRidEKCnhRO0yQvY3SDB_TcCCi3iDWTejv75ul0ZWHgr6qbJBDFrVZAL3VMLp6sfNSfYRSWf6HEc5LLlAspGCLEGdgYFc9YrzoBdVCaNfaFTrxJiJBF0i_sw4vWtFhAFaqWkN3Yvgdvh_nwkUmqoQdNbYuA3fdmosBX-VZyAmOkR-QAK5R1XtoM7uUTgIYRoUR_e_SybC0v
6gmZly0IEvUOq7pZPBuHNX3AMoSroNjiV7v-PLcfROenLJa6l-28YpPfKjouD9JN2–vDyWQb3YYnThQJ7mj_j4w7-1t6YRWHsNybtvSU-hx-bZOlERCgbzP2KSlMqOkqIfJ-Tb7QfyJqXDTsqM9zDPjsEnFmuVFYpoTuVDD5n_dpBQSmrmKwAathYvrdacDyn4fU8LY1QPjIP1y_K9-AsjEL4hwPxpv4u60ZUVlIN847dQlXXDNFLvxnwcv0LXgK8teaUbZ4X_ulLQ8s47dpMXNYn36YEfHZgCYe_EFdNb4S8CJxAl_Bsc7E6zKuaun0cA_jvatfzTWI0n3T8ArFMJqV2khyguxP7aSHNoUVtr76Q2zfHowS6LSOGZo1VlLFviVmKvlpef6WRY8S5oSu0VS_uEe8WbmcEBQEs6Y6Sw**%26docUrl%3Dhttp%253A%2F%2Fwww.businessinsider.com%2Fmichael-phelps-wins-gold-in-100m-butterfly-at-olympics-video-2012-8%26loadStartTime%3D1344116260554]

Phelps ends his Olympic career with 22 medals, 18 of them gold.

Electronic Trading Glitches Shake Market Confidence

Stock markets are impacted by distortions arising from high-frequency trading algorithms as this article by SUZANNE MCGEE discusses. We really need to consider the benefits versus the costs of HFT. Benefits of HFT liquidity are vastly overstated: what use is an umbrella if withdrawn at the first sign of rain? The costs are far more than the additional +/- $2.5 billion — profits from HFT trading — that institutional and private investors pay for stocks each year. By far the greatest cost is the damage done to market efficiency and to investor trust. An efficient market requires accurate communication of pricing information to market participants. My belief is that HFT distorts this function. And the only reason it is encouraged by exchanges is the huge profits they make from it.

Even if Knight’s [Knight Capital] losses are as large as $300 million, that’s a drop in the bucket when set beside the $862 billion that was temporarily wiped off the value of the U.S. stock market in 2010. High-frequency trading systems and the algorithms they use, these advocates argue, add liquidity to the market, which is a Good Thing.

Well, not really. Not it results in a major crisis of the kind we saw two years ago and a slew of smaller trading anomalies, day after day, week after week, month after month on top of that. Less than two weeks ago for instance, traders reported seeing a bizarre “sawtooth” pattern of trading in a handful of large-cap stocks, including Coca-Cola KO and Apple AAPL. Their prices swung higher and lower with an uncanny degree of synchronicity, zooming higher every hour on the half-hour, and lower once more thirty minutes later. More algorithms, traders muttered gloomily to one another.

via Electronic Trading Glitches Shake Market Confidence.

Forex: Euro, Pound Sterling, Canadian Loonie, Australian Dollar, South African Rand and Japanese Yen

The Euro retreated from resistance at $1.24 to test support at $1.22. Downward breakout would test the 2010 low of $1.19. Declining 63-day Twiggs Momentum continues to indicate a strong down-trend.

Euro/USD

* Target calculation: 1.23 – ( 1.27 – 1.23 ) = 1.19

Pound Sterling broke short-term support at €1.27 against the Euro, warning of a correction to €1.25. Respect of support at €1.25, however, would suggest a healthy up-trend.

Pound Sterling/Euro

Canada’s Loonie is testing parity against the greenback. Breakout would advance to $1.02. Recovery of 63-day Twiggs Momentum above zero would indicate a primary up-trend, while a break above $1.02 would confirm.

Canadian Loonie/Aussie Dollar

The Aussie Dollar retreated from resistance at $1.05*. Reversal below $1.045 would test the rising trendline but penetration below $1.03 is unlikely. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend.

Aussie Dollar/USD

* Target calculation: 1.05 + ( 1.05 – 1.02 ) = 1.08

The Aussie Dollar respected support at R8.50 South African Rand before rallying to R8.75. Breakout is likely and would offer a target of R9.00*.

Aussie Dollar/South African Rand

* Target calculation: 8.75 + ( 8.75 – 8.50 ) = 9.00

The Australian Dollar is consolidating mid-range (between ¥72 and ¥90) against the Japanese Yen.  Breakout above ¥82.50 is likely and would test the upper range border, while reversal below ¥79.50 would test primary support. Recovery of 63-Day Twiggs Momentum above zero would strengthen the bull signal.

Aussie Dollar/Japanese Yen

Poles Apart – NYTimes.com

I enjoyed this comment on the NYtimes website by A Man from Poland in response to Paul Krugman’s criticism of Mitt Romney lavishing praise on the Polish economy. Especially because Krugman concludes: “Doesn’t anyone tell Romney to do his homework?”

Mr Krugman,

I see that you don’t know too much about situation in Poland.

Of course I agree that currency depreciation was one of main reasons of Poland’s relative resilience in the crisis.

But there were second very important reason – income tax cuts in 2008.

In 2008, the first time from 10 years we had income tax cut in Poland.

Till 2007 we had 19%, 30% and 40% progressive income tax rates. In 2008 19% tax rate was decreased to 18%, 30% was decreased to 18% and 40% tax rate (for the richest taxpayers) was reduced to 32%. So, we changed 19%-30%-40% progressive system into less progressive, lower income tax system 18%-32%.

In 2008 there was also social security tax reduction which additionally decreased labour cost in Poland.

So, thanks to income tax cuts and social security tax cuts we have maintained (roughly) employment rate and consumption level in Poland and it was second important reason of quite good situation in Poland.

via Poles Apart – NYTimes.com.