If “Buy all currencies other than the dollar and soon you’ll be walking around like a big baller” or “Buy Greek puts because you know they’ll default but also buy the Euro ’cause it’s gonna catapult” don’t do it for you, feel free to suggest your own.

Article courtesy of Dealbreaker

A Secretive Banking Elite Rules Trading In Derivatives (NYT)
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan. The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential. Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk. In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks. The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.

Wall Street Sees Record Revenue In Recovery From Bailout (Bloomberg)
The five largest U.S. firms by investment-banking and trading revenue — Goldman Sachs, JPMorgan, Bank of America, Citigroup and Morgan Stanley — will likely have a better fourth quarter than the previous two periods, driven by equity underwriting and higher volume in stock and bond trading, according to data compiled by Bloomberg. Even if this quarter only matches the third, the banks’ revenue will top that of any year except 2009.

Tax Deal Is Set To Pass Senate (WSJ)
Democratic Rep. Chris Van Hollen of Maryland, a top adviser to House Speaker Nancy Pelosi, predicted Sunday that some sort of tax deal would pass in the House before the current session ends. The House is “very focused on getting a comprehensive tax compromise passed by the end of the year,” Mr. Van Hollen said in an interview. If Republicans won’t alter the estate-tax provision, he added, “then we have to go from there.”

Suicide Won’t End Madoff Lawsuits (WSJ)
In case you were wondering.

German Finance Minister: Don’t Bet Against Euro (AP)
In an interview to appear on Sunday in Bild am Sonntag newspaper, Schaeuble said leaders of all the countries that share the currency agreed — the euro worked toward their common good and a return to national money would be a mistake. “Those who bet their money against the euro will have no success… the euro will not fail,” Schaeuble said. “The euro benefits us all and we will defend it successfully.”

Julian Assange Boasted About ‘Asian Teengirl Stalkers’ In Online Dating Profile (Gawker)
So now you know.

No New Normal For 2011 In Forecasts For 11% S&P Gains (Bloomberg)
Market analysts say earnings will hit record highs, keeping valuations below historical averages at the same time government spending aids the economy. Reaching their average forecast for 2011 would give the index annualized gains of 15 percent over three years, twice the rate anticipated by PIMCO’s new normal theory that anticipates deficits and increased regulation will limit returns.

Moody’s: Spanish Banks Need More Capital (WSJ)
Moody’s Investors Service on Monday lifted its estimated loan losses for the Spanish banking system by 63% to €176 billion (232.81 billion), saying the country’s banks have only recognized half of this figure to date and would need additional capital of €17 billion to take such a hit.

Article courtesy of Dealbreaker

Take your money and go play Keno with Grandma– nothing to see here.

“Whoever bets on the collapse of the euro is wasting his money,” German Finance Minister Wolfgang Schaeuble told reporters in Brussels after a two-day meeting. “We shouldn’t make markets any more nervous. Instead, we should do everything to get markets to have a more realistic view of the situation.” [Bloomberg]

Article courtesy of Dealbreaker

If she has to, she has to.

So give it up for them says the bank’s chief economist.

Gangsters, drug dealers and money launderers appear to be playing their part in helping shore up the financial stability of the euro zone. That’s thanks to their demand, according to European authorities, for high-denomination euro bank notes, in particular the €200 and €500 bills. The European Central Bank issues these notes for a hefty profit that is welcome at a time when its response to the financial crisis has called its financial strength into question. The high-value bills are increasingly “making the euro the currency of choice for underground and black economies, and for all those who value anonymity in their financial transactions and investments,” wrote Willem Buiter, chief economist at Citigroup, in a recent research report. The business of issuing euro notes, produced at almost zero cost, is “wildly profitable” for the ECB, Mr. Buiter wrote. [WSJ]

Article courtesy of Dealbreaker

Gartner today trimmed its forecast for 2010 global IT spending to 3.9% growth, from 5.3%, mostly to reflect the devaluation of the Euro against the dollar since the start of the year.
“The European sovereign debt crisis is having an impact on the outlook for IT spending,” Gartner research VP [...]

Article courtesy of BARRONS.com: Tech Trader Daily

He added that he’s just messing, “of course,” but seriously, think about it. Dare to dream. We can do this. And then together, we will dance.

Germans should consider the following thought experiment: withdrawal from the euro. The restored Deutschemark would soar, the euro would plummet. The rest of Europe would become competitive and could grow its way out of its difficulties but Germany would find out how painful it can be to have an overvalued currency. Its trade balance would turn negative, and there would be widespread unemployment. Banks would suffer severe losses on exchange rates and require large injections of public funds. But the government would find it politically more acceptable to rescue German banks than Greece or Spain. And there would be other compensations; German pensioners could retire to Spain and live like kings, helping Spanish real estate to recover.

Germany Must Reflect On The Unthinkable [FT]

Article courtesy of Dealbreaker

In a sign that corporate tech spending is on the mend, Accenture (ACN) this afternoon reported better-than-expected results for its fiscal third quarter ended May 31. But the company’s results also show that the sharp appreciation of the dollar against the Euro is going to have an impact on tech [...]

Article courtesy of BARRONS.com: Tech Trader Daily

Priceline (PCLN) shares are sharply higher this morning after Goldman Sachs analyst Ingrid Chung upped her rating on the online travel agency’s shares to Buy from Neutral. She contends that a recent 30% decline is an over-reaction to a 10% devaluation in the Euro, which affects about half of the [...]

Article courtesy of BARRONS.com: Tech Trader Daily

We were down 4.23 percent net in May, but thank God for our short on the Euro. Still, it was an “anomaly” period. Also included: Dan Arbess’ presentation at the Ira Sohn investment conference.

Dan Arbess’ Ira Sohn Presentation

Perella Weinberg Partners Xerion Fund May 2010 Portfolio Review & Commentary

Article courtesy of Dealbreaker

Barclays Capital analyst Douglas Anmuth this morning trimmed his EPS estimates for Google (GOOG) to reflect the impact of the weakening of the Euro against the dollar, as well as the recent decision to change distribution strategy for the Nexus One smart phone.
For 2010, Anmuth now sees profits of $27.67, [...]

Article courtesy of BARRONS.com: Tech Trader Daily