Links 21 January 2013

Here’s a list of things Reynard read over the weekend.

Global Macro:

  • Morgan Stanley points out the world is practically insolvent – The Economist
  • Gold Prices Are Setting Up For A Massive Breakout in 2013 – EFT Daily News
  • Investment Banking Faces Massive Layoffs and Identity Crisis – Der Spiegel
  • Is a New Bull Market on the Way? – Barron’s

North America:

  • More skeletons emerge from the GFC closet – Zero Hedge
  • US oil demand fell to 16-year low in 2012, and US oil imports for the year fell by 6.9% to 15-year low – Wall Street Journal
  • A Fed Voice, Asking to Cut Megabanks Down to Size – New York Times
  • Hail to the Chief: Dow Returns 72% in Obama’s First Term – Wall Street Journal
  • What Lies Ahead for the U.S. Economy? –



  • Westpac warns on funding costs – Herald Sun
  • Manufacturing gas crisis – AFR
  • QBE to cut 700 jobs – AFR
  • Labor to chase student debt overseas. AFR
  • Gina’s plan for Rio. SMH


  • The Science of Comment Trolls –


  1. Everybody who’s written or blogged about climate change on a prominent website (or, even worse, spoken about it on YouTube) knows the drill. Shortly after you post, the menagerie of trolls arrives. They’re predominantly climate deniers, and they start in immediately arguing over the content and attacking the science-sometimes by slinging insults and even occasional obscenities.

    That’s from your link to The Science of Comment Trolls.

    Interesting article.

    • “attacking the science-sometimes by slinging insults and even occasional obscenities”

      Sounds very similar to the housing bears that flood property articles these days.

      Often the truth lies somewhere between the view of the establishment and the troll.

      • Except Housing Bears are pushing common sense and economic logic, whereas Denier Trolls are pushing errant antiscience and nonsense.

        Housing Bears are not making comments to support corporate interests, whereas many Denier Trolls are doing exactly that.

        Lastly, not many Housing Bears swear, but Denier Trolls do. Why? Read the article linked above.

        • “Housing Bears are not making comments to support corporate interests”

          In most cases it is to support their own interests (ie buying property at lower prices).

    • Not to worry, Glenn will soon say a few comforting words about how the AUD has been “a little higher than expected” and that should be enough to rescue our non-mining exporters from oblivion.

    • If they made voluntary HECS repayments tax deductible then there might be an incentive to actually pay them back.

      My 60k of debt is only growing at inflation so why bother paying it back faster than the minimum amount?

        • Checked into doing this for my wife’s HECS (paying back early) and it looked like they recently scaled back the discounts. To best of my knowledge you only get a 10% discount if paying in full at time of study and I don’t think early repayments received any discount (or may have been 5%).

  2. guys just a request, can we have the full URLs instead of links? Those are blocked at some workplaces since it’s associated with Twitter.

    • Isn’t this the great dilemma of economies – the need to generate growth and jobs? The various FHB grants coincided with the greatest credit bubble in modern times both of which combined to push up property prices which encouraged more borrowing for property which pushed up property prices which…

      Given the Master Builder’s report today, who knows, another FHB scheme could be on the cards. Can anyone afford it?

      • I reckon you’re right. Though I’d argue the FHB grants helped spur that debt bubble, rather than it simply coinciding – FHB’s armed with a lovely fresh deposit (borrowed and handed out by Mr Fed) enabling them to get “a foot on the ladder” via a loan they could not previously afford, competing against specuvestors freshly reinvigorated by the “bouncing” higher prices to leverage up some more.

        The bozos in govt (whichever party) will inevitably keep trying the same old plays in attempting to kick the can. Alas, I think they will eventually run out of sufficient critical mass of bribable fools to generate the new “credit” growth acceleration necessary to keep the bubble inflated.

      • BTW, ban usury, and the so-called “need” for “growth” is effectively neutered.

        (ie, the “need” for ever-increasing “productive output” just to repay usury on the debt-money supply, is eliminated)