luni, 29 august 2011

SEOmoz Daily SEO Blog

SEOmoz Daily SEO Blog


An SEO's Guide to RegEx

Posted: 28 Aug 2011 02:02 PM PDT

Posted by robmillard

RegEx is not necessarily as complicated as it first seems. What looks like an assorted mess of random characters can be over facing, but in reality it only takes a little reading to be able to use some basic Regular Expressions in your day to day work.
 
For example, you could be using the filter box at the bottom of your Google Analytics keyword report to find keywords containing your brand, such as Distilled. If you want to include both capitalised and non-capitalised versions, you could use the Regular Expression [Dd]istilled. Pretty simple, right?
 
Hang on though… some of you might be asking, what the hell is RegEx? That’s a good point. RegEx (short for Regular Expressions) is a means of matching strings (essentially pieces of text). You create an expression which is a combination of characters and metacharacters and a string will be matched against it.
 
So in the example of the keyword report above, your Regular Expression is applied to each keyword and if it matches it’s included in the report. If it doesn’t match, it’s discarded.
 
RegEx has many uses aside from Google Analytics too such as form validation or URL rewrite rules.  Hopefully this post will give you an understanding of the basics and some ideas for where you might be able to use it.
 

Characters & Metacharacters

I mentioned that Regular Expressions are made up of characters and metacharacters. A character, to clarify, is any letter, number, symbol, punctuation mark, or space. In RegEx, their meaning is literal – the letter A matches the letter A, the number 32 matches 32, and distilled matches distilled (but not Distilled - characters in RegEx are case sensitive).
 
Metacharacters, however, are not treated literally. Below I’ll go through each of the metacharacters used in RegEx and explain their special meanings.
 
If you want to test them out as we go along, I’d recommend opening up Google Analytics and using the filter box at the bottom of your reports. Alternatively you could use http://RegExpal.com/ and make up your own data set.
 

Dot .

A dot matches any single character. That is to say, any single letter, number, symbol or space. For example, the Regular Expression .ead matches the strings read, bead, xead, 3ead, and !ead amongst many others. It’s worth noting that ead would not be matched as the . requires that a character is present.
 
 

Backslash \

From time to time you’ll find that a character that you want to match is a metacharacter.  For example, if you’re trying to match an IP address such as 172.16.254.1, you will find that your RegEx matches 172.16.254.1 but also any string such as 1721161254.1 because the dots can represent any character.
 
Preceding a metacharacter with a backslash indicates that it should be treated as a character and taken literally.  In the example above, you should use 172\.16\.254\.1
 
The question mark is often found in dynamic URLs such as /category.php?catid=23.  If you’re trying to track this page as part of your conversion funnel, you may experience problems as question marks, as we’ll see later, are metacharacters.  The solution is simple: /category.php\?catid=23
 
 

Square Brackets []

Square brackets can be used to define a set of characters – any one of the characters within the brackets can be matched.  We saw them in the example I used in the introduction - [Dd]istilled can be used to match both distilled and Distilled.  
 
You can also use a range, defined with a hyphen.  [0-9] matches any single number for example, or [a-z] matches any lower case letter of the alphabet.  It’s also possible to combine ranges, such as [A-Fa-f] would match any letter between a and f in either lower or upper case.  Ranges are often combined with repetition which we’ll touch on next.
 
Specifically in character sets, you can use the caret ^ to negate matches.  For example [^0-9] matches anything but the characters in the range.
 
 

Repetition ? + * {}

The question mark, plus symbol, asterisk, and braces all allow you to specify how many times the previous character or metacharacter ought to occur.
 
The question mark is used to denote that either zero or one of the previous character should be matched.  This means that an expression such as abc? would match both ab and abc, but not abcd or abcc etc.
 
The plus symbol shows that either one or more of the previous character is to be matched.  For example, abc+ would match abc, abcc, and anything like abccccccc.  It would not, however, match ab as the character has to be present.
 
The asterisk is an amalgamation of the two – it matches either zero, one or more of the preceding character.  An example you say?  Oh go on then!  abc* matches ab, abc, abcc, and anything beyond that such as abccccccc.
 
Finally, braces can be used to define a specific number or range of repetitions.  [0-9]{2} would match any 2 digit number for example, and [a-z]{4,6} would match and combination of lower case letters between 4 and 6 characters long.
 
 

Grouping () |

Parentheses allow you to group characters together.  I may, for example, want to filter the keyword report for searches containing my name, and I want to pick up both rob millard and robert millard.  I could do this by using rob(ert)? millard – the question mark and parentheses mean that either zero or one of ert can be matched.
 
In addition, you can use the pipe to represent OR.  You might use it for something like (SEO|seo|s\.e\.o\.|S\.E\.O\.)moz to track SEOmoz, seomoz, s.e.o.moz, and S.E.O.moz, although the versions with dots seem unlikely.
 
The pipe can also be used without the parentheses if you don’t need to group the characters.  For example iphone|ipad could be used to filter traffic coming to your site from keywords containing either.
 
 

Anchors ^ $

Although we’ve already looked at the caret in conjunction with square brackets, it can also be used to show that a string must start with the following characters.  For example, if you’re trying to match all URLs within a specific directory of your site, you could use ^products/.  This would match things like products/item1 and products/item2/description but not a URL that doesn’t start with that string, such as support/products/.
 
The dollar sign means the string must end with these characters.  Again you could use it to track certain URLs like /checkout$ which would pick up the likes of widgets/cart/checkout and gadgets/cart/checkout but not checkout/help.
 
 

Some shorthand

There are a few quick timesavers here…
\d means match any number i.e. the same as [0-9]
\w means match any letter in either case, number, or underscore i.e. [A-Za-z0-9_]
\s means match any whitespace, which includes spaces, tabs, and line breaks.
 
Phew!  That’s quite a lot to digest.  I’d recommend playing around with the short examples above to really get a feel for them.  Once you’re comfortable with the basics you can start getting stuck into the real uses…
 
 

Google Analytics

Filters can be used to exclude internal traffic out of your reports, and combined with some simple RegEx you can filter a range of IP addresses.  In Profile Settings, create a new custom filter which excludes the filter field Visitor IP Address.  Using an expression such as 55\.65\.132\.2[678] would exclude IP addresses 55.65.132.26, 55.65.132.27, and 55.65.132.28.
 
Another Google Analytics feature which can greatly benefit from the use of RegEx is Advanced Segments.  One of the more common uses is to create a segment for non-branded organic search traffic so that you get a clear picture of your SEO efforts, unaffected by any branding exercises.  Create a segment where the medium matches exactly organic and create an and statement where the keyword does not match Regular Expression.  In this statement, you should include RegEx such as the [Dd]istilled example in the introduction, or for my personal site it might look like [Rr]ob(ert)? [Mm]illard.
 
You could also use Advanced Segments to create a social media segment - select source and set the condition to matches Regular Expression.  Your value should be something like facebook|twitter|youtube|digg etc.
 
I’ve already touched on the filter box at the bottom of each report earlier in this post - it’s probably where I most often use RegEx as it can be a great help when investigating specific problems or queries.  Use the pipe, for example, in the keyword report to find keywords containing a few synonyms, or do something similar to the social media segment on the fly by listing a handful of sites in the traffic sources report.
 
Finally, RegEx can be useful when setting up conversion goal pages and funnel steps where you want more than one URL as the goal or step.  When setting up a new goal with a URL destination, use the match type Regular Expression match.  You might wish to use a value such as ^/(widgets|gadgets)/checkout/thanks\.php$ to track both /widgets/checkout/thanks.php and /gadgets/checkout/thanks.php for example.  When setting up a funnel, all URLs are treated as Regular Expressions so you can use the same technique.
 
There are more advanced examples for all of the uses above in several excellent blog posts and resources about RegEx and Google Analytics - there are too many to list here but I’d thoroughly recommend searching and reading some of them.
 
 

Rewriting URLs

I expect that most of you SEOmoz readers are familiar with SEO friendly URLs.  They should be static rather than dynamic and should be descriptive.  Often this is achieved using URL rewrites which are implemented on Apache servers using the built in module called mod_rewrite.  A text file called .htaccess sits at the root of the domain which contains your mod_rewrite rules.  A simple rewrite looks something like this:
 
RewriteEngine On
RewriteRule ^category/link-building/?$ category.php?cat=link-building [NC]
 
This example would mean that the URL www.example.com/category/link-building/ would actually serve the page www.example.com/category.php?cat=link-building.  As you may remember from earlier, the caret and dollar sign mean that the URL must start and end with link-building/, and the question mark means that the trailing slash is optional.  [NC] is not RegEx - it is part of mod_rewrite’s syntax which simply states that the RewriteRule is not case sensitive.
 
Obviously this approach is not particularly efficient for large sites with thousands of URLs, and this is where RegEx becomes indispensable as it allows you to match patterns.  A dynamic rewrite rule using RegEx might look like this:
 
RewriteEngine On
RewriteRule ^category/([A-Za-z0-9-]+)/?$ category.php?cat=$1 [NC]
 
This rules states that the URL must start with category/ and can then be followed by any combination of letters, numbers and hyphens as long as there are one or more (+).  This part of the rule is surrounded with parentheses so that it can be referenced in the second part of the rule using $1.  If you had a subsequent set of parentheses, it could be referenced with $2 and so on.  Again, the trailing slash is optional because of the question mark, and the caret and dollar sign are used to define the start and end of the URL.
 
This is just one simple example in an area where there are numerous possibilities.  If you want to know more I’d definitely recommend checking out this guide as well as the excellent cheat sheet.
 
 

Word – yes, Word

This is something I’ve only been getting to grips with lately, but turning on wildcards in Word’s Find and Replace can save a huge amount of time when cleaning and manipulating data.  I find that I’m often doing this when creating reports or preparing data for an infographic for example.
 
You can find the wildcards check box under the advanced options in Find and Replace.  An example of how you might use it could be to remove the session ID from a list of URLs.  You could enter sid=[0-9]+ into the find box, and leave the replace box blank.
 
As with mod_rewrite you can also reference back to your find box, although the syntax is slightly different.  Instead of $1 and $2 you use \1 and \2.  If you had a list of URLs and you wanted to switch the subdirectories round you could use example.com/([a-z-]+)/([a-z-]+)/$ in the find box and use example.com/\2/\1/ in the replace box.
 
There’s more about using RegEx in Word on the Microsoft support site here and here
 
 
Of course there are many, many other uses for Regular Expressions, especially in programming, but I hope this gives you some idea of the potential of RegEx in the field of SEO.  Let me know if you have any questions or thoughts in the comments, or feel free to give me a shout on Twitter (@rob_millard).
 

 

Further Reading & Resources

http://analytics.blogspot.com/2009/04/regular-expression-tips-and-tricks.html - some handy RegEx tips from the Google Analytics blog.
 
http://www.lunametrics.com/RegEx-book/Regular-Expressions-Google-Analytics.pdf - a really well put together PDF which goes into some depth for each metacharacter.
 
http://services.google.com/analytics/breeze/en/RegEx_ga/index.html - a guide to using RegEx with Google Analytics by Google.
 
 
http://RegExpal.com/ - useful tool that mentioned in the main post which is great for testing your RegEx.
 
http://www.seomoz.org/blog/5-quick-google-analytics-hacks - a quick tip from @tomcritchlow on how to use RegEx to filter by keyword length or depth of page.

 


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President Obama Announces New Chair of the Council of Economic Advisers

The White House Monday, August 29, 2011
 


This morning, President Obama announced his intention to nominate Alan B. Krueger as a member of the Council of Economic Advisers (CEA). As one of the nation’s leading economists, Dr. Krueger will bring decades of experience, including serving as chief economist at the Treasury Department, and a wealth of knowledge to the challenge of creating jobs and promoting economic growth. Following his confirmation, President Obama will designate Dr. Krueger as Chairman of CEA.

As the President said today, Dr. Krueger will be a strong addition to his economic team as they work tirelessly to accelerate hiring and spur innovation:

I have nothing but confidence in Alan as he takes on this important role as one of the leaders of my economic team.

I rely on the Council of Economic Advisers to provide unvarnished analysis and recommendations, not based on politics, not based on narrow interests, but based on the best evidence -- based on what’s going to do the most good for the most people in this country.  And that’s more important than ever right now.  We need folks in Washington to make decisions based on what’s best for the country, not what’s best for any political party or special interest.  That’s how we’ll get through this period of economic uncertainty, and that’s the only way that we’ll be able to do what’s necessary to grow the economy.

Read the full remarks or watch the video:

On Wednesday August 31st, the President’s Council on Jobs and Competitiveness is holding a Listening and Action Session with local businesses and stakeholders in Portland, Oregon.

Council members will take questions and comments from people around the country submitted on the White House LinkedIn group and whitehouse.gov as part of a discussion about how the public and private sectors can partner to create opportunity and support job creation.

You can also watch the session live at 11:00 a.m. ET/ 8:00 a.m PT on www.whitehouse.gov/live

Finally, don’t miss next week, when the President lays out a series of bi-partisan ideas that Congress can adopt immediately to put more money into the pockets of working and middle-class families, make it easier for small businesses to hire people, and put construction crews to work rebuilding American infrastructure.



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Thanks to This Month’s Sponsors August 2011 Graywolf's SEO Blog

Thanks to This Month’s Sponsors August 2011 Graywolf's SEO Blog


Thanks to This Month’s Sponsors August 2011

Posted: 29 Aug 2011 10:30 AM PDT

Post image for Thanks to This Month’s Sponsors August 2011

I’d like to say thanks to the people who sponsored the blog this month, without them there wouldn’t be regular posts here.

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Related posts:

  1. Thanks to This Month’s Sponsors July 2011 I’d like to say thanks to the people who sponsored...
  2. Thanks to this Months Sponsors – August 2009 I’d like to say thanks to the people who sponsored...
  3. Thanks to This Month’s Sponsors May 2011 I’d like to say thanks to the people who sponsored...
  4. Thanks to This Month’s Sponsors Feb 2011 I’d like to say thanks to the people who sponsored...
  5. Thanks to This Month’s Sponsors March 2011 I’d like to say thanks to the people who sponsored...

Advertisers:

  1. Text Link Ads - New customers can get $100 in free text links.
  2. BOTW.org - Get a premier listing in the internet's oldest directory.
  3. Ezilon.com Regional Directory - Check to see if your website is listed!
  4. Need an SEO Audit for your website, look at my SEO Consulting Services
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Thanks to This Month’s Sponsors August 2011

Photo of the Day: Responding to Irene's Impact

The White House Your Daily Snapshot for
Monday, August 29, 2011
 

Photo of the Day

President Barack Obama visits the National Response Coordination Center at FEMA Headquarters in Washington, D.C., to monitor the latest on Hurricane Irene, Aug. 27, 2011. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog.

Hurricane Irene: President Obama on Response and Recovery Efforts
President Obama assures those who have been impacted by the deadly storm that "America will be with you in your hour of need."

Weekly Address: Coming Together to Remember
President Obama pays tribute to the first responders, those who have served, and those who lost their lives ten years ago in the September 11th attacks. Visit Serve.gov for ways to commemorate this solemn anniversary in your community.

Weekly Wrap-up: Time to Prepare
A quick look at what happened this week on WhiteHouse.gov.

Today's Schedule

All times are Eastern Daylight Time (EDT).

10:15 AM: The President receives the Presidental Daily Briefing

11:00 AM: The President makes a personnel announcement WhiteHouse.gov/live

12:10 PM: The President meets with senior advisors

12:45 PM: The President and the Vice President meet for lunch

2:00 PM: Press Briefing by Press Secretary Jay Carney WhiteHouse.gov/live

WhiteHouse.gov/live  Indicates events that will be live streamed on WhiteHouse.gov/Live

Get Updates

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Stay Connected

  

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Seth's Blog : The warning signs of defending the status quo

The warning signs of defending the status quo

When confronted with a new idea, do you:

  • Consider the cost of switching before you consider the benefits?
  • Highlight the pain to a few instead of the benefits for the many?
  • Exaggerate how good things are now in order to reduce your fear of change?
  • Undercut the credibility, authority or experience of people behind the change?
  • Grab onto the rare thing that could go wrong instead of amplifying the likely thing that will go right?
  • Focus on short-term costs instead of long-term benefits, because the short-term is more vivid for you?
  • Fight to retain benefits and status earned only through tenure and longevity?
  • Embrace an instinct to accept consistent ongoing costs instead of swallowing a one-time expense?
  • Slow implementation and decision making down instead of speeding it up?
  • Embrace sunk costs?
  • Imagine that your competition is going to be as afraid of change as you are? Even the competition that hasn't entered the market yet and has nothing to lose...
  • Emphasize emergency preparation and the expense of a chronic and degenerative condition?

Calling it out when you see it might give your team the strength to make a leap.

 

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duminică, 28 august 2011

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


International Monetary Research says "Eurozone Break-Up Certain"; I say Embrace the Fact "Banks Cannot Be Saved"

Posted: 28 Aug 2011 08:57 PM PDT

Echoing what I have been saying for years, Christine Lagarde, the new head of the IMF says "Banks Need Urgent Recapitalisation". Unfortunately, much of the rest of what she says is pure nonsense, including the way she wants to achieve that mission.

Please consider European banks set cash test by IMF chief
Christine Lagarde, the IMF's new chief, set off tremors at the Jackson Hole summit over the weekend with warnings that the global financial system is on very thin ice and vulnerable to the slightest shock.

"We are in a dangerous new phase. The stakes are clear: we risk seeing the fragile recovery derailed, so we must act now," she said.

"Banks need urgent recapitalisation. If it is not addressed we could easily see the further spread of economic weakness to core countries, even a debilitating liquidity crisis. The most efficient solution would be mandatory substantial recapitalisation," she said.

Mrs Lagarde issued a thinly-veiled attack on the ECB's rate rises and Europe's fiscal austerity drive. "Monetary policy should remain highly accommodative, as the risk of recession outweighs the risk of inflation. Fiscal policy must navigate between the twin perils of losing credibility and undercutting recovery," she said.

Tim Congdon from International Monetary Research said it is folly to force Europe's banks to raise money too quickly or crystallize losses abruptly. This will cause a monetary implosion and a repeat of the 2008 disaster.

He said the ECB's restrictive policies over the last 18 months and the lack of EMU fiscal union have doomed the euro to certain break-up.

"It cannot be saved. Banks will suffer large losses," he said.
Embrace the Fact "Banks Cannot Be Saved"

This mess cannot be saved. Tim Condgon bemoans the fact. I say, embrace the fact!

Tim Congdon wants to kick the can down the road. Christine Lagarde is clearly angling for more taxpayer bailouts.

Just what the hell does it take for people to realize that throwing more money down the drain cannot solve a damn thing?

Banks are going to take losses. That means bondholders are going to take losses. It is nonsensical to assume anything but that. It is equally nonsensical to suggest there is a way around it. The sooner we embrace the simple facts of the matter, the better off everyone but the bondholders will be.

Attempts to shove more bailouts on the backs of already over-leveraged taxpayers will stunt the recovery for years more to come.

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


Intuit: U.S. Small Business Hiring Slows in August, Wages Dip

Posted: 28 Aug 2011 06:50 PM PDT

Intuit says U.S. Small Business Hiring Slows in August, Wages Dip
Hiring by U.S. small businesses slowed in August and employers reduced hours, an independent survey showed on Sunday, suggesting the recent stock market turmoil may have dampened job creation.

Intuit, a payrolls processing company, said small businesses added 35,000 jobs after increasing employment by 40,000 in July.

The survey is based on responses from about 66,000 employers at businesses with fewer than 20 employees that use the Intuit Online Payroll system and covered the period from July 24 to August 23.

"There was plenty of bad news this month and the Intuit small business employment figures show this," said Susan Woodward, the economist who helped to develop the survey. "From this month's numbers, we don't see a new recession, but we don't see a robust recovery either."
Odds are US Already in Recession

I am increasing amused at the number of analysts and forecasters who think the US will avoid a recession. I think it is odds on the US is already in a recession.

Others have "gone out on a limb" forecasting a recession within a year.

Is that going out on a limb? Of course not. Going out on a limb was when Dave Rosenberg forecast a 99% chance of recession several months ago.

I was not that brave. He was and he deserves the credit for it. Most of the recession callers are Johnny-Come-Latelys. What's more amusing are those who see little chance of it at all.

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


Greece 1-Yr Rate 60%; Finland Retains Collateral Demand; Multiple Veto Points; ECB "Litmus Test" Coming Up; Germany Accuses ECB of Treaty Violations

Posted: 28 Aug 2011 11:40 AM PDT

Once again the bond markets have spoken, and once again the message is the same: default. Greek two-year bonds are near 44%, having touched as high as 46%. The interest rate on 1-year Greek government debt is a stunning 59.8%.

Greek 1-Year Government Bonds



Greek 2-Year Government Bonds



44% a year, for two years or whopping 60% for one year, unless of course there is a default.

Not only does the bond market say Greece will default, but the implied haircuts are huge given those interest rates.

Greece Not Saved

Supposedly "Greece was Saved" on that blue circle when yet another bailout (throwing more good money after bad) was approved.

The deal unraveled for numerous reasons but demands by Finland for collateral are at or near the top of the list. Austria, Slovakia, and the Netherlands now want collateral as well.

Under great pressure from Germany, the EU, and IMF, Finland allegedly dropped those demands. It was a lie. Finland did not drop demands for collateral, and that shows you the effect of multiple veto points where such decisions must be unanimous or they fall apart.

17 Veto Points

Please consider A Small Country — Finland — Casts Doubt on Aid for Greece
Finland is just one of 17 euro zone countries whose parliamentary approval is needed for the expanded bailout fund and whose domestic politics could upset the process. The case of Finland points to a bigger governance problem in Europe, said James Savage, a professor at the University of Virginia who has published a book on European monetary union.

"You have all these multiple veto points, so they can't come to a reasonable conclusion, at least not easily," Mr. Savage said. "You have increasingly less efficient decisions that are being made."

Officials from European Finance Ministries spent much of Friday in long- distance negotiations about the collateral issue but did not reach an agreement. Conflicting reports about the negotiations have fed market confusion. The news media in Germany and other countries reported Friday that Finland had dropped its demands, but the reports were swiftly denied by Finnish officials.

The climate created by the collateral dispute could make it more difficult for the European Central Bank to continue to defend Italy and Spain in bond markets and contain their borrowing costs. This month the E.C.B. has spent €36 billion, or $52 billion, intervening in debt markets in an effort, so far successful, to cap bond yields for the two countries.

The E.C.B.'s task could prove more difficult when trading volume picks up, especially since both Spain and Italy are scheduled to try to sell debt this week. "A litmus test for the effectiveness of the E.C.B.'s bond-buying program is in the cards," Rainer Guntermann, an analyst at Commerzbank, wrote in a note.

"We have to listen to the people of Finland," said a government official, who requested anonymity because of the sensitivity of the issue. "Collateral is an absolute condition for Finland to be involved."

The collateral dispute is not the only threat to the bailout package. The plan that leaders worked out in July also calls for banks and other investors to swap some of their existing holdings for new bonds that would be worth less but carry guarantees. The plan is designed to cut Greek debt by €37 billion.

But on Friday, in what was probably a tactical move to put pressure on bond holders to accept the deal, Greece said it would back out of the debt relief plan unless 90 percent of investors agreed, Reuters reported.

"Greece should be allowed to fail," Robert J. Aumann, who has a Nobel in economics, said at a recent conference in Lindau, Germany, according to a text of his remarks. "They should repay the debts they feel able to pay and not pay the others."
Greece Has Failed

Nobel prize winner Aumann says "Greece should be allowed to fail".

Not quite.

Greece failed long ago. It is only stubborn idiots at the ECB, EU, IMF, and leaders of various countries who insist otherwise.

They insist otherwise to protect their banks. Yet, by throwing more money into the pot that will now clearly be defaulted on, they have made matters far worse.

ECB "Litmus Test" Coming Up

Now that Finland wants collateral for Greek loans, it will do the same if Spain or Portugal needs more loans. Moreover, I keep wondering when the citizens of Spain, Portugal, and Ireland have had enough, given the success of Iceland in telling the ECB, EU and IMF to go to hell.

Iceland is recovering. The PIIGS are not.

German President says ECB Bond Purchases "Legally and Politically Questionable"

How much more Italian bonds can the ECB buy before it runs out of cash, willpower, or completely drains the EFSF €440bn pool of money?

While pondering the above question please note that German President, Christian Wulff, leader of the Christian Democratic Union, says that ECB bond purchases are "legally and politically questionable".

The Telegraph reports on the accusation by Wulff in Germany fires cannon shot across Europe's bows
In a cannon shot across Europe's bows, he warned that Germany is reaching bailout exhaustion and cannot allow its own democracy to be undermined by EU mayhem.

"I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU's workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank's independence," he said.

Mr Wulff said the ECB had gone "way beyond the bounds of their mandate" by purchasing €110bn (£96.6bn) of bonds, echoing widespread concerns in Germany that ECB intervention in the Italian and Spanish bond markets this month mark a dangerous escalation.

The blistering attack follows equally harsh words by the Bundesbank in its monthly report. The bank slammed the ECB's bond purchases and also warned that the EU's broader bail-out machinery violates EU treaties and lacks "democratic legitimacy".

The combined attacks come just two weeks before the German constitutional court rules on the legality of the various bailout policies. The verdict is expected on September 7.

The tone of language from two of Germany's most respected institutions suggests that both markets and Europe's political establishment have been complacent in assuming that the court would rubberstamp the EU summit deals in Brussels.

Nobel laureate Joe Stiglitz told the forum that the euro is likely to fall apart unless Germany accepts some form of fiscal union. "More austerity for Greece and Spain is not the answer. Medieval blood-letting will kill the patient, and democracies won't put up with this kind of medicine."

Mr Wulff rebuked Chancelor Merkel, saying political leaders should not break their holidays every time there is trouble in the markets. "They have to stop reacting frantically to every fall on the stock markets. They mustn't allow themselves to be led around the nose by banks, rating agencies or the erratic media," he said.

"This strikes at the very core of our democracies. Decisions have to be made in parliament in a liberal democracy. That is where legitimacy lies."
Kiss a Larger EFSF Goodbye

  1. Kiss a larger EFSF goodbye unless 17 nations all agree to raise the pool to a collective to the proposed €2.2 trillion from the current €440 billion pool.
  2. Kiss a larger EFSF goodbye unless Greece offers hard collateral
  3. Kiss a larger EFSF goodbye unless German courts rubberstamp the EU summit deals
  4. Kiss a larger EFSF goodbye unless 90 percent of investors agree to the deal

In other words, kiss a larger EFSF goodbye, expect a test of the ECB's Italian, Spanish, and Portuguese bond purchasing power, and expect a German court test that in-and-of-itself would settle this matter once and for all.

Even if the German courts approve the deal, there are still more than 17 points of failure, counting investors.

One way or another Greece will default. The sooner the better, actually.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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