Links 25 October 2012

Global Macro:

  • Hedge Funds Belt Few Home Runs – Wall Street Journal
  • Today’s deficit cut could hurt tomorrow’s growth – AFR

North America:

  • Canadian house prices dip -0.4% in September but up 3.6% YoY – Teranet
  • Federal Reserve issues FOMC statement – Federal Reserve
  • White House seeks removal of Fannie regulator – Financial Times
  • Federal Prosecutors Sue Bank of America Over Mortgage Program – New York Times
  • Why the Fed Should Buy Munis — Not Mortgages – New York Times
  • Moody’s: Echo boomers to reverse declining homeownership – Sober Look
  • Fed to keep buying bonds despite firmer U.S. growth – Reuters
  • Housing Was a Huge Headwind; Now It’s a Small Tailwind –
  • New Home Sales and Distressing Gap – Calculated Risk
  • New home sales jump to near 2-1/2 year high in September – Reuters


  • Draghi Defends Bond Purchases With Warning of Deflation Risk – Bloomberg
  • Germany proposes Greece pay primary surplus into trust account –
  • Euro area government debt up to 90.0% of GDP – European Union
  • German Ifo Business Confidence Unexpectedly Fell in October – Bloomberg
  • Greece says has finalised austerity package – Reuters
  • Eurozone downturn deepens in Sep as PMI hits 40-month low – Markit


  • JP Morgan gets burned in China property deal –
  • Beijing to Launch 70 Bln Yuan Plan to Rescue Solar Industry – Caixin Online
  • China flash PMIs are up, but there’s a catch – FT Alphaville
  • Chinese Banks’ Credit Risks to Emerge – S&P – Fox Business
  • China to Speed Reforms of Some State Sectors – Wall Street Journal
  • Gee, the bullish spin on China’s tepid Q3 numbers is just amazing – Shanghaiist


  • BoQ toughens up on bad debts – AFR
  • Cost of carbon tax less than estimated – Peter Martin
  • Foreign property investment still smoke and mirrors – The Age
  • Inflation may quash housing recovery – AFR
  • Government inflation puts rate cuts at risk – AFR
  • Mining tax raises zero revenue in first three months – The Australian
  • 1,400 jobs on line at remote NT mine – The Australian
  • Curb spending to return to surplus – The Australian


  • In U.S., Obesity Up in Nearly All Age Groups Since 2008 –
  • The case for nominal GDP targeting – Mercatus Center


  1. And NZ keeps its Cash Rate unchanged at 2.5% – an opportunity wasted in my opinion – but hey, it looks like the new Governor has bee taking notice of Luci Ellis’ writings! “.. Housing market activity is increasing as expected…”

  2. “Inflation may quash housing recovery – AFR”

    I can’t read the article however I presume they are arguing interest rates will rise.
    We’re going to have one hell of a lot of ‘looking through’ inflation going on over the next few years just so interest rates don’t rise. ‘Housing’ is all we’ll have as has been clearly explained by the RBA.

    For me the insanity of it all was completed here

    Inflation pushes dollar higher


    Please someone out there from either Treasury or the RBA sign in under some BS name and tell us that really they understand that this is all insane…just one person would do for a start just so there is some little hope!

    • thanks. a great read….that has left me sorely pissed off for the rest of the day. foi = the greatest misnomer ever.

    • Sounds like an ideal subject for an opposition senator to pursue in the estimates committee. That would make riveting viewing.

      • such is the current state of our politics, “ideal” and/or “riveting” = “never going to happen”

    • “The last mile solution”..late 1990’s..and the first share portfolio,I’ve ever had,was with a Perth based and as things might have changed from a far to afair to better ways…Today’s tune toon’s see’s us Drawtogetther…

    • It’s great they can get the people onto a bus quicker.

      But it doesn’t change the fact that a train carries more people and travels faster.

      • So if the Trains not connecting to your house,then my stealth Black-hawk Motor-home
        doesn’t need park in such a short radius to wireless intercept with you..seems I could park by the Beach and surf cloaked in two,where could still bus data quick enough to intercept my keyed n stroked findings,bookmarks n sites being privately researched almost as secrets,with them all my hidden treasured destinations to possible claims,Only to be led in by this discovery,back to the small radius I used to look through your window,of which you may well now see that in my computer,is what was once on yours..Cheers,for this…we could share some nice investment to claim riches from these..Left,n though need it might seem easy to put wheels on to hide your future wireless researched,or nor’t,like,is the more ways we can share,that too,then,I’m likely there to look at them in first-hand n get the onsite groundings to buy all the surroundings…I’m a stealthy 6 packed speedy 6ltr mid-mount with a Panoramic view,night flyer,that to end the morning..sets up camp on our new view making claims off ,before you… safe,only training left to Do

  3. Leith, a couple of things for you to ponder.

    1. Just saw replay of Peter’s (cuz) show and if I interpreted correctly Craig Emerson conceded (to paraphrase) “the MRRT is based on the PRRT and as such it would I would not expect anything much in terms of revenues for the first few years”. If my take is correct, this is extraordinary.

    Emerson, in Cabinet, cognizant of a likely shortfall and not saying a word??

    2. Given your expressed interest in demographics. This paper (2008), demographic change in Asian region and migration – reinstates belief in the Asian Century idea and if Oz tertiary sector is ever wondering ‘what went wrong’… Worth a look, but quickly reminds we currently have our natural comparative advantage and little else.

    • 1. let me gather something,you we’re just drawing back ever since the mining tax was introduced..n now you’re on the whistle with ref..miningbot,3dik
      2.ah n,would you believe that during the the nights of last n some of us spent a good bit of time,on other secrets n seminars..of late
      working at the moment n ready..n will put it in line with the other 2800 odd others,yet to be understood 3d1k holdings…n waste,could be not ..for those with plenty..regards,back at ya my Minuscule friend