Weekend links: European agony

Global Macro:

  • Reasons to fear Wall Street’s high-tech traders (Fortune)
  • Pimco’s Bill Gross warns of risk assets as Aberdeen avoids stocks (Bloomberg)
  • Moody’s tilts playing field toward safe-haven banks (AFR)

United States:

  • Pretty high hurdle to QE3: Fed’s Bullard (Reuters)
  • University looks like a bubble that is about to burst (Financial Times)
  • The Fed And Goldilocks Economic Forecasting (Zero Hedge)
  • Euro risks have U.S. businesses readying for the worst (Reuters)
  • Bernanke’s twist sharpens year-end anxiety over stimulus(Bloomberg)




  • Fury over Vic public service job cuts (Fairfax)
  • Perth tops the nation with mortgage and rent (Fairfax)
  • Housing eludes young families (The Australian)


Leith van Onselen
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  1. DE, The Eurozone Debt Crisis – It’s Now ABOUT Germany NOT UP TO Germany! Satyajit Das


    Appears to make sense to my non-expert understanding. The observation that Germany’s reliance on exports (similar to China) predominantly to the Eurozone (again China) coupled with genuine pressures on German banks via exposure to peripheral country debt suggest “Germany may not, as widely assumed, offer a safe haven in the European debt crisis”, as China may not be our ‘safe haven’?

    • Arguably, Australia is about to experience the same social upheaval that Germany did, if the export lead boom wilts…” In the early 2000s, they paid through internal devaluation — reductions in real wages, unemployment and labor market reforms …”

      • Yes, that thought did cross my mind…

        …and a little ironic to note that the original ‘price’ Germany paid to be part of the Euro is the same ‘price’ being rejected by said peripheral nations for the same ‘privilege'(?). Is it also a rejection of making the hard choices and taking the prescribed medicine Germany did to ensure longer-term economic benefit (although now just how long-term we shall see).

    • dumb_non_economist

      That would be right; the wheels will off China just as I’m about to start my new job! Is that referred to as the luck of the Irish?