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sâmbătă, 14 ianuarie 2012

SEOptimise

A Collection of 47 Helpful Google Search Operator Queries

Posted: 13 Jan 2012 06:19 AM PST

To be honest, from my school days of using Google right up to today, the search engine giant has not once stopped impressing me. From its algorithmic updates for a better user experience to its cloud based computing services, Google has captured my life and sadly, probably my soul.

Today I will be sharing with you a collection of my favourite Google search operator queries, not only to help open your mind to the powers of Google being much more than a search engine, but also to show you that knowing some of these queries will help you become better in the art of SEO.

6 Starter Operator Search Operator Queries

These queries are particularly helpful because they’re generally quick and easy short cuts in narrowing your search results:

Query	What does it mean?
"best practice seo"	Searches for this exact phrase within “”
mobile -phone	Inclusion of – means searches for the word mobile but nothing following after phone
seo ~glossary	Brings up a glossary of information regarding that word
define:seo	Definition of that word or phrase
OR / \|	Returns search queries with one of the given terms
related:	Helps list web pages related to the URL

5 Basic Mathematics Search Operator Queries

Google search provides users with the ability to calculate simple maths without the need for your calculator:

Query	What does it mean?
+ / – / * //	Simple mathematics rules
% of	Percentage of a number
^ / **	Raise to the power of a number
square root of number	Find the square root of a number
reciprocal of (number)	Find the reciprocal value of a number

4 Advanced Mathematics Search Operator Queries

Surprisingly, Google does not stop at the most simple of mathematics and is there for the more complicated algorithmic-based equations:

Query	What does it mean?
sin, cos, tan	You’re able to use the trigonometric functions within a search
ln(number)	Utilises the natural logarithm of the number
log(number)	Utilises the base 10 logarithm
number!	Returns a factorial number

7 Converting Tool Search Operator Queries

Google offers users the ability in search to convert various units:

Query	An example, search in Google:
Currency converter	36 yuan to dollars
Data converter	Convert 81 Mb to Gb
Distance converter	68m to cm
Speed converter	38mph in kph
Temperature converter	18 Celsius in Fahrenheit
Time converter	89 days in minutes
Weight converter	8 stones in kg

7 Everyday Helpful Search Operator Queries

I find these operator queries particularly useful everyday, and maybe you will too:

Query	What does it mean?	An example, search in Google:
file:	Results show various file type extensions	file:linkbuilding.pdf
movie:	Results show movies in your local area	movie:oxford
weather:	Current weather forecast of that area	weather:oxford
time:	Local time in that country	time:china
sunrise:	Sunrise in that area	sunrise:oxford
map:	Map of that area	map:oxford
safesearch:	Search without any adult content	safesearch: sex education

2 Google News Search Operator Queries

These search operator queries are restricted to only Google News – very useful when you want to find news from a particular country or source-specific articles:

Query	What does it mean?	An example, search in Google news:
location:	Discover news posts from a location	Location:china
source:	Discover news posts from a source	Source:search engine land

4 Blog Search Operator Queries

When searching for particular blog-related links, these operator queries can help you search by author, post type and blog title:

Query	What does it mean?	An example, search in Google:
inpostauthor:	Search for this specific author	inpostauthor:”kevin gibbons”
inblogtitle:	Search for this specific blog title	inblogtitle:seoptimise
inpostitle:	Search for posts with these titles	inpostitle: on page optimisation
blogurl:	Search for blogs under a specific URL	blogurl:seoptimise.com

12 SEO Operator Queries

As an SEO practitioner, one of my most powerful search tools has to be Google itself. Just knowing these search operator queries exist is only quarter of the battle. But understanding how they work and best practices is where you can excel:

Query	What does it mean?
site:URL	Search only one site or domain
site:URL (image search)	Shows results for images on that website
allintitle:	All search results must appear in the title of the page
intitle:	The following keywords must appear in the title of the page
allintext:	The following must appear within the text page
intext:	The search term has to appear in the title of the page
allinurl:	The search term appears in the URL
allinanchor:	The following search terms must all appear in anchor text links with the page
inanchor:	All the following search terms all must appear in anchor text links with the page
cache:	Displays Google's cached version of a webpage
info:	Provides information on that specific page
link:	Finds the pages that link to that URL

Top Tip to Remember: In Google search you are not restricted to just one query per search. For example, you could have multiple queries in one search – e.g. site:seoptimise.com “web trends” -ppc

Thanks for reading this and please do share some of your favourite search operator queries!

*Image credit: niknack on Flickr.

30 SEO Resolutions for 2012

Posted: 13 Jan 2012 06:05 AM PST

Like most people, SEO practitioners reflect on the past year and attempt to improve their skills in the new year.

If you haven't made up your mind what exactly you want to change in the coming year, check out these suggestions for 30 SEO resolutions for 2012 that draw on modern industry best practices and growing trends.

Content Creation

I will create less shallow content and more quality “one of a kind” pieces of content.
I will create more content using multiple rich media such as images, audio, videos and the like.
I will write shorter, more readable postings instead of long, hard to read ones that nobody can follow.
I will create more content on site and waste less time on third party sites that require me to give away "User Generated Content".
I will provide less average sales copy and create more outstanding content for inbound marketing purposes.

Link Building

I will perform fewer tedious tasks such as contacting unwitting webmaster about link exchanges and provide more appealing incentives for people to link to me voluntarily.
I will go after more citations and fewer links to get traction on local search and Google Places instead of just the organic index that gets less exposure.
I will make sure my old inbound links are still there and also fix 404 errors on my own site.
I will link out more, not only to get noticed and more links back, but to reach out honestly to like-minded industry professionals – after all, we don't compete most of time.
I won't sneak in "free links" anymore on unsuspecting sites that would not voluntarily link to me.

Social Media

I will market less and contribute more in order to become a valuable contributor to social media.
I will get organised while social networking and not just waste time drifting from update to update on Facebook, Twitter or Google+.
I will follow fewer hypes and not just jump in on every social site that web celebrities want me to. I will go where the real value is.
I won't just share links all the time on social sites but instead use them in a balanced way, adding networking and conversation to my daily habits.
I will schedule times for my social media activity instead of just dropping in and getting distracted all the time during work hours.

Blogging

I will blog more regularly instead of just updating my social media profiles on third party sites.
I will guest blog on other blogs, both the already important ones and the not yet very well known.
I will focus my blog writing on the desired outcome – not just blog for the page views and social shares.
I will socialise with other bloggers both online and in real life to establish lasting relationships.
I won't check web analytics daily or more often and obsess about metrics that only make sense to check in the long term or every other week.

Tools

I will use fewer tools and more techniques. SEO and SMO are still about how you use them, not how many tools you use.
I will use the tools I prefer more in-depth instead of just scratching the surface of the features.
I will take more time for social media analytics and monitoring and find out what real humans say about me, my contributions and why.
I will not trust tools with everything and make sure to cross check data and compare with other outcomes.
I will recommend only the tools I truly use, not the ones I'm an affiliate of.

SEO

I will perform more SEO tests and publish the results to the benefit of the SEO community, no matter how vague the outcomes are.
I will provide more advice to educate the clients and their teams and make them more self-sufficient.
I will share my techniques, tools and case studies, not just to show off but to get recognition from the SEO community.
I will rant and complain less about Google, other SEOs and bloggers and instead keep on improving my own arsenal.
I will build a recognisable brand instead of just relying on generic rankings on Google.

These resolutions are written in the first person to make it easier for you to identify with them and to apply them yourself. They are not necessarily my personal resolutions.

On a side note: this is my last post on SEOptimise after more than four years. I hope you liked my posts. If you did, you can keep on reading my own blog over at SEO 2.0.

The SEOptimise team will take care of this blog completely from now on, so there won’t be any shortage of posts.

* Creative Common image by Aftab Uzzaman.

Seth's Blog : Declaring victory

Declaring victory

Whenever you start a project, you should have a plan for finishing it.

One outcome is to declare victory, to find that moment when you have satisfied your objectives and reached a goal.

The other outcome, which feels like a downer but is almost as good, is to declare failure, to realize that you've run out of useful string and it's time to move on. I think the intentional act of declaring becomes an essential moment of learning, a spot in time where you consider inputs and outputs and adjust your strategy for next time.

If you are unable to declare, then you're going to slog, and instead of starting new projects based on what you've learned, you'll merely end up trapped. I'm not suggesting that you flit. A project might last a decade or a generation, but if it is to be a project, it must have an end.

One of the challenges of an open-ended war or the Occupy movement is that they are projects where failure or victory wasn't understood at the beginning. While you may be tempted to be situational about this, to know it when you see it, to decide as you go, it's far more powerful and effective to define victory or failure in advance.

Declare one or the other, but declare.

• Email to a friend •

Mish's Global Economic Trend Analysis

Retail Investors Shun Speculation and Stuff Money under the Mattress; Is this a Contrary Indicator?
Ceridian Fuel Index Positive for Third Month but "Too Small to Make Up for Lost Ground Last Six Months"
EU Iran Oil Embargo Likely Delayed Six Months; Obama Sends Teams of Consultants Worldwide Hoping to "Manage Supply and Demand of Oil"; Phased In Oil Shock
Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent
Greece Bank Creditor Group Says Talks ‘Paused for Reflection’; S&P to Cut Some Euro Zone Countries on Friday; Euro Sinks to New Low for the Move
ECB Says Credit Crunch Averted; Yet ECB Overnight Deposits Again Hit Record High; Skyrocketing ECB Balance Sheet

Retail Investors Shun Speculation and Stuff Money under the Mattress; Is this a Contrary Indicator?

Posted: 13 Jan 2012 05:35 PM PST

Madeline Schnapp at TrimTabs writes via email ...

TrimTabs flow research shows that retail investors are stuffing money into the mattress. So tell me again how all this money printing by the Fed has helped retail investors?

Best,
Madeline

Via Press TrimTabs says "Retail Investors Shun Speculation and Stuff Money under the Mattress".

Sausalito, CA – January 13, 2012 – TrimTabs Investment Research said today that in the first 11 months of 2011, investors poured eight times more money into checking and savings accounts as they did into stock and bond mutual funds and exchange-traded funds.

"The Fed is doing almost everything in its power to entice investors to speculate in overpriced asset markets," said TrimTabs Executive Vice President David Santschi. "But retail investors aren't taking the bait."

In a research note, TrimTabs explained that $889 billion poured into checking and savings accounts in the first 11 months of 2011 (complete data for December 2011 is not available). This inflow was more than eight times greater than the $109 billion that flowed into stock and bond mutual funds and ETFs.

"It's remarkable that inflows into checking and savings accounts outstripped inflows into stock and bond mutual funds and ETFs in each of the first 11 months of 2011," said Santschi.

Santschi added that in the latest three months from September 2011 through November 2011, the $139 billion inflow into checking and savings accounts was almost 13 times higher than the $11 billion inflow into stock and bond mutual funds and ETFs.

"Most portfolio managers desperately want to believe the economy will improve so they can pocket bigger bonus checks for 2012 than they'll be taking home for 2011," said Santschi. "But the economy isn't likely to get off to the races as long as investors are stuffing most of their money under the mattress."

Money Under the Mattress Video

Link if video does not play: Santschi's Daily Edge 1/12/2012: The Real Money Goes under the Mattress

Is this a Contrary Indicator?

Retail investors are frequently a contrary indicator. Is that the case here or is this simply reality setting in? Another option is boomers out of work via retirement (forced or voluntary) need to tap into their savings to live or to maintain lifestyle.

My guess is retiring boomer demographics is clearly in play here, and a combination of related ideas are the driving force behind what TrimTabs reports.

Retail investors finally realize things are not as good as portrayed by government and mainstream media
Retail investors believe things are not going to get better soon
Volatility is unnerving
Some boomers are tapping savings to maintain lifestyle
Some are tapping savings because they are out of a job and have to

Simply put, retail investors have given up and are not coming back. Some can't because they have no job. Others won't because they have had enough.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Ceridian Fuel Index Positive for Third Month but "Too Small to Make Up for Lost Ground Last Six Months"

Posted: 13 Jan 2012 10:38 AM PST

Inquiring minds are digging into the Ceridian-UCLA Pulse of Commerce Fuel Index for December 2011 report released today.

The Ceridian-UCLA Pulse of Commerce Index® (PCI®), issued today by the UCLA Anderson School of Management and Ceridian Corporation, rose 0.2 percent in December following the 0.1 percent increase in November and the 1.1 percent increase in October. Unfortunately, the combined effect of the three consecutive positive months was not enough to offset the weakness of trucking last summer and the PCI in December 2011 is 1.2 percent below its June 2011 level and 0.7 percent below its level a year ago in December 2010.

With all three months of the fourth quarter now available, we are able to make an informed assessment of the likely rate of growth of fourth quarter GDP. The fourth quarter PCI was up over the third quarter; but only by 0.5 percent at an annualized rate. The good news here is that this positive 0.5 percent growth of rate for the PCI in the fourth quarter was much better than the third quarter, which suffered a decline at an annualized rate of 4.2 percent.

The PCI annualized rate of growth of 0.5 percent in the fourth quarter is consistent with an estimated GDP growth of 2 percent or less. Although Wall Street economists have jacked up their "backcasts" for fourth quarter GDP growth to 3 percent or higher, the fundamentals as indicated by the fourth-quarter PCI are not so favorable.

Many of these Wall Street economists are basing their improved forecasts on expectations regarding a healthy contribution of inventories to GDP growth. The PCI does not support this view. The PCI measures inventories destined for factories, stores and homes, and the third quarter decline in the PCI correctly anticipated the large negative contribution of inventories to GDP growth. The BEA estimate of the inventory contribution to GDP growth for the third quarter has been varying around -1.5 percent as the data are revised, and is currently at -1.4 percent. That is almost as large as the estimated GDP growth of 1.8 percent. Absent that inventory negative, the rate of growth would have been 2.2 percent.

The fourth quarter PCI of plus 0.5 percent suggests only a modest positive contribution of inventories in the fourth quarter, which implies a GDP forecast that is not as optimistic as many Wall Street economists believe.

However, with real retail sales growing more rapidly than the PCI over the last two quarters, the first half of 2012 may be an inventory-rebuilding period, allowing inventories to make a substantial contribution to GDP growth. This would be very supportive of the recent improvement in the labor market, which may finally be entering a positivefeedback loop during which more jobs help create even more jobs.

Here is a video with Chief PCI® economist, Ed Leamer, on the December results.

3-Month Ceridian Index Moving Average

click on chart for sharper image

Ceridian fuel usage is diesel fuel for truckers. For Gasoline usage and petroleum usage in general, please see Year-Over-Year Gasoline and Petroleum Usage Charts; Shares Decline as Chevron Warns of Weaker 4th Quarter Earnings.

Ceridian Index vs. Retail Sales

That divergence between trucking fuel usage and retail sales is about to resolve to the downside for retail sales.

For details, please see Retail Sales Up Scant .1% in December, Core Retail Sales Decline; Chart of Retail Sales Adjusted for Population Growth and Inflation

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

EU Iran Oil Embargo Likely Delayed Six Months; Obama Sends Teams of Consultants Worldwide Hoping to "Manage Supply and Demand of Oil"; Phased In Oil Shock

Posted: 13 Jan 2012 09:48 AM PST

Under pretense of looking for other sources of oil, EU Iran Oil Embargo Over Nuclear Work Said Likely to Be Delayed Six Months

A European Union embargo on imports of Iranian (OPCRIRAN) oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies, two EU officials with knowledge of the talks said.

The embargo, which would need to be accepted by the 27- nation bloc's foreign ministers on Jan. 23, is also likely to include an exemption for Italy, so crude can be sold to pay off debts to Rome-based Eni SpA (ENI), Italy's largest oil company, according to the officials, who declined to be identified because the talks are private.

A ban on petrochemical products would start sooner, about three months after EU ministers agree to the measure, one official said yesterday. Once a decision is made, member states would be barred from concluding new oil contracts with Iran or renewing those that are due to expire, while existing deals will be terminated within six months, according to a second diplomat today. Long-term contracts constitute the bulk of Europe's purchases of Iranian oil.

Phasing in the European embargo would satisfy the concern of nations most dependent on Iranian crude, including Italy, Greece and Spain, the first EU official said. Those three nations accounted for 68.5 percent of EU imports from Iran in 2010, according to European Commission data.

As Europe weighs its embargo, President Barack Obama's administration has sent teams worldwide to consult with countries on managing the supply and demand of oil, according to an administration official who briefed reporters in Washington.

OPEC's other members would be able to make up for a drop in Iranian oil supply if the EU agrees to an embargo, said Chakib Khelil, the group's former president. Even so, prices may temporarily rally to as high as $200 a barrel on news of any such blockade, he said today in London.

"It should be possible to replace, at least, the European consumption of Iranian oil," Khelil said in an interview with Mark Barton on Bloomberg Television's "On the Move."

Obama's Arrogance Coupled With Economic Idiocy

Anone who thinks president Obama can manage the supply and demand of oil is a fool. Sending teams worldwide in an attempt to do that is not only the height of arrogance, it is economic idiocy

Phased In Oil Shock

Iran is OPEC's second largest oil producer. Bloomberg estimates that Iran pumped 3.58 million barrels of crude a day last month.

The idea that Iran's oil supply can easily be replaced is pure nonsense.

Phasing in an embargo is the same as phasing in higher prices smack in the midst of an already guaranteed monster European recession.

Given that US Defense Secretary Admits "Iran Not Trying to Develop Nuclear Weapon" this move by the US and Europe is not only economic suicide, it is an illegal act of war as well.

Can China Benefit From Obama's Move?

Superficially, the only possible beneficiary to Obama's and the EU's economic warfare is China.

For details, please see China Snubs Geithner on Iran Oil; China Gets Cheaper Iran Oil as U.S. Pays Tab for Hormuz Patrols; Retired Admiral Warns "US Policy Benefits the Chinese"

However, it's important to understand that Chinese "benefit" is an illusion, in isolation.

In aggregate, oil-dependent countries including China cannot conceivably benefit from an oil shock or higher oil prices because global trade will collapse. OPEC exporters may temporarily benefit from higher prices but the expense will be falling usage and a strengthening worldwide recession.

If one wonders why Iran may want nuclear weapons, the US and EU have certainly given Iran sufficient reasons.

How to Stop the Madness

This proposed embargo is economic idiocy as well as an act of war by the US and EU on Iran.

Once again I point out that President Obama has continued the inane policies of President Bush. Newt Gingrich and Mitt Romney would do the same.

If one wishes to end the economic and war-mongering madness, there is only one electable choice: Ron Paul.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent

Posted: 13 Jan 2012 08:49 AM PST

In conjunction with a "Pause for Reflection" and stalled talks by Greece Bank Creditor Group over the benefits of further "voluntary" cuts on Greek debt, yield on 1-year Greek bonds soared over 400%.

A hard default appears imminent.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Greece Bank Creditor Group Says Talks ‘Paused for Reflection’; S&P to Cut Some Euro Zone Countries on Friday; Euro Sinks to New Low for the Move

Posted: 13 Jan 2012 08:10 AM PST

Less than a day ago ECB president Mario Draghi was bragging "Credit Crunch Averted" noting the Euro's first weekly gain in five-weeks. Unfortunately for Draghi, there was still one day left in the week.

Greece Bank Creditor Group Says Talks 'Paused for Reflection'

Bloomberg reports Greece Bank Creditor Group Says Talks 'Paused for Reflection'

Talks between Greece and its creditor banks were put on hold after negotiations in Athens failed to yield an agreement.

A proposal put forward by the steering committee representing financial firms has "not produced a constructive consolidated response by all parties," the Institute of International Finance said in an e-mailed statement today. "Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach."

The IIF's Charles Dallara and Jean Lemierre had met for a second day in Athens with Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos, aiming for a deal in the euro area's first large restructuring. The committee had offered a 50 percent nominal reduction of Greece's sovereign bonds in private investors' hands and as much as 100 billion ($127 billion) of debt forgiveness, the IIF said.

Greece hasn't yet decided whether to submit legislation that could force holders of the nation's debt to take part in a bond swap, according to a government spokesman who said his earlier remarks on the matter were misinterpreted.

European Debt Downgrades

Reuters reports S&P to Cut Some Euro Zone Countries on Friday

Standard & Poor's is set to downgrade the credit ratings of several euro zone countries later on Friday, but not those of Germany and the Netherlands, a senior euro zone government source said.

Another source confirmed "several" countries would be hit.

French TV, citing a government source, said France's credit rating would be downgraded and another source said Slovakia, the euro zone's second poorest country currently rated A+ by S&P, would suffer the same fate.

Euro Sinks to New Low for the Move

On some combination of the above news, the Euro reversed strong gains, falling to a new low for the move, down to 1.2627 from a high of 1.2884. That is a very big intraday currency swing of 2.57 cents vs. the US dollar.

Euro 15 Minute Chart

Creditors "Paused for Reflection, so should Mario Draghi.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

ECB Says Credit Crunch Averted; Yet ECB Overnight Deposits Again Hit Record High; Skyrocketing ECB Balance Sheet

Posted: 13 Jan 2012 01:45 AM PST

Following a relatively tiny two-day rally in the Euro the ECB blows its horn with a statement Credit Crunch Averted

The euro rose, extending its first weekly gain versus the dollar in six weeks, as Italian bonds advanced and after European Central Bank President Mario Draghi said policy makers have averted a credit shortage.

The 17-nation currency climbed against all but two of its 16 major counterparts as Spanish debt also rallied as Italy prepared to sell notes today. The Dollar Index (SPX) dropped for a second day before a U.S. report forecast to show consumer confidence improved this month, reducing demand for the U.S. currency as a haven.

Draghi said the central bank's massive injection of cash into the financial system last month is beginning to flow through into credit markets. "There are tentative signs of stabilization of economic activity," he said in Frankfurt after the ECB's policy meeting yesterday. Policy makers kept the benchmark rate at a record low of 1 percent after two straight quarter-point reductions.

Draghi's Statement in Perspective

After a 5-week decline, some snapback in the Euro is to be expected. The impetus is just as likely to be the action by the ECB to hold interest rates at 1% as anything else.

Actually, given extreme bearish sentiment on the Euro, no reason at all is needed for a euro relief rally.

For a look at sentiment including charts of record-high short interest on Euro futures, please see Euro Suffers Longest Losing Streak Since 2010; Record High Speculative Short Positions; Big Specs vs. Currency Movements; Not Timing Devices written January 8.

ECB Overnight Deposits Again Hit Record High

As for the idea a "credit crunch has been averted", please consider the Wall Street Journal report for January 13 that says ECB Overnight Deposits Again Hit Record High

Euro-zone banks' overnight deposits with the European Central Bank hit yet another all-time high Thursday, likely reflecting continued funding pressures in the banking sector as well as the approaching end of the reserve period.

Banks deposited €489.906 billion ($627.77 billion), the central bank said Friday, up from €470.632 billion Wednesday.

The daily deposits have been extremely high since banks in December tapped the ECB for its first-ever three-year loan. ECB President Mario Draghi Thursday said the extra long-term facility has been successful at preventing a serious credit contraction in the banking sector. The ECB launched the operation to address the fact more than €200 billion in bank loans was coming due in the first quarter, Mr. Draghi added.

Some analysts attribute that the ever-increasing deposits to the fact that banks are hoarding their excess funds—a good deal of which originate from the three-year ECB loan—by channeling them back to the central bank.

However, Mr. Draghi dismissed that idea at his press conference Thursday. He said the banks drawing on the ECB's refinancing operation are "by and large" different from those banks that have been depositing their funds with the ECB overnight.

European Banks Hoarding Cash

European banks aren't lending now, nor will they lend any time soon as discussed in German Economy Contracts in 4th Quarter; Spain's Industrial Output Plunges 7%; UK Trade Deficit Widens; European Banks Wisely Hoard Cash

Skyrocketing ECB Balance Sheet

The reason for debt rally is not that a credit crunch has been avoided, but rather, the ECB has become the lender of only resort, bloating its balance sheet to record levels.

Please consider Swelling ECB Balance Sheet Brings Relief, Poses Risk For Euro

The European Central Bank's increasingly swollen balance sheet has helped calm volatile markets, but some believe it could itself become a problem and bring more volatility to the 17-nation currency bloc.

Nearly a year's worth of anticrisis lending measures have sent the ECB's books to a record EUR2.73 trillion, some 29% of the euro zone's gross domestic product. This expansion, capturing both the collateral pledged by banks receiving funds from the central bank and the sovereign bonds it has purchased for its own account, has been welcomed by bond investors, who see it as a stabilizing force. But the excess liquidity bodes for a weaker euro, and has some wondering if the ECB's own solvency could eventually be in peril.

Many investors are concerned that a default in the Hellenic republic could ricochet across the 17-nation currency bloc. That could renew an assault on other euro-zone bond markets that are already distressed.

More worrisome are relaxed collateral rules. When the ECB introduced a three-year tender last month at generous 1% interest rates, more than 500 banks gorged themselves on a record EUR489 billion of the central bank's cash. Some commentators worry that a worsening of peripheral bond markets could endanger securities pledged by the banks, posing a considerable solvency threat to the central bank.

"The quality of the balance sheet deteriorates as it expands, which is doubly problematic," said Michael Woolfolk, senior currency strategist at BNY Mellon in New York.

European banks are dumping sovereign debt at record levels on the ECB. Germany and France are on the hook. 10-year Italian bonds are down substantially, but the rate is still 6.5% with the ECB the buyer of only resort.

Good luck with that policy as Europe heads into a massive recession.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

sâmbătă, 14 ianuarie 2012

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Seth's Blog : Declaring victory

Declaring victory

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Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis

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sâmbătă, 14 ianuarie 2012

SEOptimise

SEOptimise

Seth's Blog : Declaring victory

Declaring victory

More Recent Articles

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis

Pagini

Persoane interesate

Arhivă blog

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