Links 9th August

Global Macro:

  • How Google Can Avert the Next Financial Crisis (Bloomberg)
  • Fisher Says More Stimulus May Overburden Central Banks (Bloomberg)

United States:



  • Electricity Use Seen Overstating China Economic Slowdown (Bloomberg)
  • China’s local governments engage in Ponzi Finance (Caixin)
  • China push for more say on iron ore prices (SMH)
  • Steel and iron ore prices in China remains weak (Zarathustra)
  • China’s macro data dump preview (Zarathustra)
  • China prepares to open bond market to foreigners (AFR)


  • Canberra has a delicate balancing act to play when considering future American plans in the Pacific (The Diplomat)
  • Australia’s  sub-prime lending (Herald Sun)
  • NBN costs blow out by billions (SMH)
  • Price falls take their toll on Rio Tinto earnings (SMH)
  • Fortescue concedes Pilbara mining boom cooling (AFR)
  • Melbourne’s apartment construction boom to continue (The Age)



  1. It still amazes me the number of people in the UK who are in negative equity who are in shock or blaming the banks, a house is an equity, equity can go up and down, if there was an asset class or product that only went up it would be illegal.
    If I end up in a negative equity scenario then shit happens, being angry and blaming others won’t change anything, I got this house to live in for at least 10 years and that’s what I aim to do. Yes I believe we are going to see house prices correct themselves, at the end of the day a plane takes off from the ground and lands on the ground how high it flew inbetween is irrelevant once it’s back on the ground and it sure as hell isn’t staying up in the sky forever.

  2. AV Jennings posts $30 million loss.

    But don’t worry, things will get better when we get our confidence back. After all, house prices can’t continue to fall here.

    “This crisis of confidence persists despite generally good economic conditions in Australia, relatively high and consistent GDP growth, low unemployment figures and continued high population growth,” it said.

    “It also persists despite the accepted belief (espoused by the major banks, the RBA and others) that house prices in Australia will not suffer a sharp decline as experienced overseas, in the absence of a major economic shock.”

    • (Worth looking up the definition of espoused – “to take up and support as a cause : become attached to”)

      • Probably true, we’ll waste 20 years getting to the same point as them, where there is enough slack in the economy to make entrepreneurship in progress in new areas possible.

  3. NBN’s been going how long, and the first blowout of a meager $3.2B, but it’s on target wow ho…

  4. That Paul Tudor Jones “Trader” video – Top 10 Trading Video story – is a real find! It’s not supposed to be ‘on air’ and was well worth the hour to view it, finally….

  5. James Shugg with Ticky says markets don’t seem to be pricing in significant Eurozone potholes ahead