Links 27 February 2013


Here’s a list of things Reynard read overnight.

Global Macro/Markets:

  • A powerful convexity in short-term Vix futures – FT Alphaville

North America:

  • A soft landing for Canada? Not so fast – The Globe & Mail
  • A mini Canadian debt default: Ottawa writes off another $540-million in unpaid student loans – National Post
  • Whither Canada’s Labor Market? – Wall Street Journal
  • Canadian baby boomers may be planning to move, but not into condos  – The Star
  • Home Prices Closed Out a Strong 2012 – Riholtz
  • A good primer on US budget sequester – Roll Call
  • Bernanke fears US spending cuts – The AFR


  • Italian post-election misery – FT Alphaville
  • Italian bank shares smashed – The Guardian
  • The burning of Rome spreads – FT Alphaville
  • France’s Industry Minister calls on ECB to join currency war and deliberately weaken euro  – Zero Hedge; Bloomberg
  • EU watchdog worries about how banks add up risks – Reuters


  • China’s credit to GDP ratio over the years — including shadow banking – Financial Times
  • How excess liquidity drives China’s real estate bubble – Washington Post
  • Trends to Watch in This Year’s Monetary Policy – Caixin
  • China has its own debt timb bomb – Wall Street Journal
  • China issues draft rules easing issuance of asset-backed securities – Reuters


  • Rio Tinto warned of possible rating cut – Financial Times
  • Iron ore to dive to $US70 a tonne – The Age
  • Pilbara in lock-down as Rusty roars in – The Australian
  • Residex regional Australia statistics for January 2013 – Residex
  • RBA has power to lower dollar – The Australian
  • Corbett rejects rate cut pressure – The Australian
  • Tough times in the coal mines – The AFR
  • Gas developers fight back against CSG ruling in NSW – The AFR


  • How to fix banking so the rest of us don’t have to pay for it – The Guardian
  • Hey, spendy miners, operate Glencore style – FT Alphaville
  • Is the productivity boost of mobile technology worth the hastle – The Age


  1. Now that the election campaign is in full swing, Julia in Rooty Hill reminding herself and the Labor party of its traditional base – when will the ABC go into election mode in terms of equal time – Sky has – anyway the Libs have launched the first of many vignettes kindly provided by the ALP:

  2. HnH, can you please move back to full inks, instead of the twitter shortcuts, most workplaces block them.

  3. Worried about the build quality of Australian dwelling? You have every right to be!

    Builders make unseen changes to homes

    HOMEBUILDERS are opting for cheaper houses, given weaker economic conditions and problems with affordability, building supplies giant James Hardie says.

    Chief executive Louis Gries says homebuilders generally are building cheaper houses to ensure they can still make a profit.

    Builders were “value-engineering” and “de-featuring” houses to lower costs.

    Houses are also smaller and being built with lower-cost materials.

    Granite bench tops that once may have been standard are now optional.

    “They pull any costs out of the home that homeowners are not aware of,” Mr Gries said on Wednesday, after announcing a return to profitability in James Hardie’s third quarter.

    “Meaning it’s not easy to see if you’ve got five-eighth-inch gypsum (plasterboard) or half-inch gypsum, or if you have 24-inch spacing on studs versus 16 (inches), or you have two-by-sixes or two-by-fours (the width and depth in inches of wooden planks used in construction).”

    Wonder if the poor home owner is aware of this – clearly in some cases they aren’t. Assume our ever vigilant watchdog will be all over this.