Links 25 February 2013

Here’s a list of things Reynard read overnight.

Global Macro/Markets:

  • “A feature of all bubbles is the emergnce of seemingly-plausible fundamntal arguments to justify rise in asset prices” – Riholtz
  • “We are seeing “the exhaustion of a growth model based on consumption” – Zero Hedge
  • Paul Krugman on whether 80% of GDP is a “danger zone” for public debt – New York Times
  • The Financial Cycle: Theory and Implications – Conversable Economist
  • The 2% Mystery: Why Has QE3 Been Such a Bust? – Matthew O’Brien – The Atlantic

North America:

  • Vancouver house prices drive workers overseas – The Globe & Mail
  • Is the US facing a housing shortage? – Sober Look
  • We should stop expecting monetary policy alone to save the US economy – Quartz
  • Detroit: Skid row – The Economist


  • What took you so long, Moody’s? – FT Alphaville
  • Prospects for economic recovery in southern Europe have darkened – The Economist
  • Panic-driven austerity in the Eurozone and its implications –
  • Unemployment & growth in the Euro Zone – Naked Keynesian
  • The Weekend Interview with Bernard Connolly: Why the Euro Crisis Isn’t Over – Wall Street Journal
  • The UK is very European – in its mistakes – Financial Times


  • Who in China is calling the shots on island dispute with Japan? – The Diplomat
  • PM: “Japan is not, and will never be, a tier-two country” – Financial Times




  1. It’s really worth listening to this guy, Richard Duncan, interviewed by David McAlvany.

    He contends that the debt problems in the world, eg. the US debt (100% of GDP more or less) is not a problem, at leats for many years.

    Sort of an Aha! moment for me.


  2. RE: Developers go mad in SA – Adelaide Now

    Nothing shows the end of a housing bubble quite like developer incentives. Cash, cars, air con, even cooking lessons! The govt also chipping in up to $40k per home. Hmm. Think I’ll wait til house prices drop, thanks.

  3. When cash is trash, beans are queens! Musings on Buffet’s Heinz foray.

    “There is thus a more sinister potential implication of Buffett’s Heinz purchase. He may believe that inflation will become extreme, that the monetary system will break down completely, that even gold and silver will become unacceptable stores of value in a period in which their value is after all itself a matter of fiat since gold at least has no practical use. In that event, a breakdown of the monetary system would presumably be accompanied by a breakdown of the distribution system, causing the entire 310 million population of the United States to revert to barter and subsistence farming.

    At that point, the most valuable commodities would become food staples and armaments. With baked beans piled in warehouses around Omaha, and a ketchup lake at an undisclosed location, Buffett could dominate the post-Apocalypse economy to an even greater extent than he dominates the present one. He would of course need a collection of bodyguards and a sophisticated means of self-defense, so maybe we should look for future Buffett purchases in the armaments sector.”

    I think there are more than a few MB readers that might follow that line of thought.