Links 11 January 2013

Here’s a list of things Reynard read overnight.

Global Macro:

  • Simon Johnson: Betrayed by Basel – New York Times
  • The Myth of ‘Jobless Recoveries’ – Econbrowser
  • The Economist’s interactive chart comparing nominal and real house prices across 20 markets over time – The Economist

North America:

  • Tim Geithner is one of the most important Treasury secretaries in history – Washington Post
  • Buffett Says Banks Cleared of Excess Risk Pose No Threat to U.S. – Bloomberg
  • Home Lender Rules Bar No-Docs, Teasers – Wall Street Journal
  • Bank of Canada could raise rates half a per cent this year, says RBC – Yahoo Finance
  • On diminishing capital intensity – FT Alphaville


  • ECB leaves rates unchanged – ECB
  • Spain kicks off tough 2013 with strong bond sale – Reuters



  • Australia & New Zealand have two of the top 10 most FREE economies in the world! – Heritage Foundation
  • Hey, big spender: Howard king of loose purse strings–says IMF! – The SMH
  • WA fears green hit to gas hub – AFR
  • Fortescue to cash-in on iron ore rebound – Business Spectator


  1. “The Myth of ‘Jobless Recoveries’ – Econbrowser”

    I must say that this is one of a few core things that bothers me about the claims of a 2013 “recovery”: certain arbitary, but largely manipulated and politically significant numbers seem to be going up and down a little bit (but not really that much), but some core notions are worse or flat.

    I can’t help but think that, sure, there might be some 3-6 months of “recovery” rally but, really, based on what? Things like unemployment are, generally, not good anywhere (and where they are “good” they seem to have some significant headwinds, like Australia).

    Some corporate figures seem to be “OK”, but they are either systemically-privilaged (like banks getting bailed out), and one could validly say that they are benefiting from net systemic wealth transfer; and other corporate figures that are doing “OK” are doing so off the back of significant cost cutting, such as job shedding.

    Seems a little bit “dead cat bounce” to me – though the market can stay irrational longer than I can stay solvent…

    My 2c

      • Great link lg. Some-how, big capital and big corporate has managed to convince a whole range of the disenfranchised middle class to cheerlead for them on the basis of a spurious free market ideology that allows profit shifting and tax shelters and executive largess.

        For some reason, these folk don’t seem to understand that they are not provided with the same privileges as the capital they cheerlead.

        • It’s because they have managed to convince the useful idiots that if only it weren’t for those confiscatory taxes and oppressive regulations, they, too, could be selfish rich arseholes.

  2. Peter Martin shows a lot of guts with his article addressing Howard era spending habits and the first lot of comments show that readers are well aware of this. With all the unpleasant political showdowns of recent times it is delightful to be reassured that many, many voters do see through political propaganda and are capable of noting both good and bad policies of both major parties.
    Here is a link to a recent article I liked, suggesting there is a year of better political debate to come.