July 26 links: Contagion returns

Greece 2 Year 5 Year 10 Year
Portugal 2 Year 5 Year 10 Year
Ireland 2 Year 5 Year 10 Year
Spain 2 Year 5 Year 10 Year
Italy 2 Year 5 Year 10 Year
Belgium 2 Year 5 Year 10 Year
France 2 Year 5 Year 10 Year
Germany 2 Year 5 Year 10 Year
  • Oil at $120 is number one bet. Bloomberg
  • Money market funds cut euro bank exposure. FT
  • Italy bails on August bond auction. Zero Hedge
  • What’s wrong with the Greek bailout II. Alphaville
  • Greek games. Rajiv Sethi
  • Moody’s trashes Greece and other PIGS “You know they call you PIGS, but they don’t understand…”
  • Reforming the agencies. FT Too hard basket. Must read.
  • Smash the ceiling. New Yorker
  • US default? Who cares! WSJ
  • Chicago Fed, activity slow in June. Dallas Fed picks up. Calculated Risk
  • More QE for the UK. FT
  • More China clever money. Patrick Chovanec
  • Little sign of rebound for global growth. Gavyn Davies
  • MMRT favours big miners. SMH Shock.
  • Bail out retail. Adele Ferguson She’s a great journo but disagree on this.
  • Iron ore shipping stalls. Reuters


  1. “Bail out retail. Adele Ferguson She’s a great journo but disagree on this.”
    While they are at it, might as well try to bring dinosaurs back to life.
    That said, I think a mini bailout is on the way, with the duty/GST limit for import brought down from $1000 to $500 – a great help that’ll be for the retail dinosaurs! NOT!

  2. I don’t understand how the PIGS are B & C rated though and are still servicing debts – though the US will admittedly run out of money on August 2 and are still AAA. Surely, there is some chance of default?

    • The US will default — if that happens — because they willingly choose to default not because they are broke. They can pay their debts should they choose to do so. If they default on August 2 they will likely raise the ceiling at some point not long after once the politicians have scored enough points. So the absolute risk to your money holding treasuries is minimal.

  3. How amusing re:retailer bailout. They could add 10%, and it would still be vastly cheaper to shop online and o/s. Tough luck Gerry!