Links 6 February 2013

Here’s a list of things Reynard read over night.

Global Macro/Markets:

  • All’s fair in love and currency wars – FT Alphaville
  • S&P killer, qu’est-ce que c’est? – FT Alphaville
  • Roubini Global Economics – The View From Davos: Too Bullish? – roubini.com

North America:

  • The US v S&P – FT Alphaville
  • US government has not exhausted its fiscal options – Bill Mitchell
  • Outlook: debt to stabilize; low growth, high jobless; sequester would hit GDP – Congressional Budget Office
  • Name the largest credit market in the US – Sober Look
  • Service sector grows in January: ISM survey – Reuters
  • Year-on-year house price gain hits six-year high – MarketWatch
  • Home prices post biggest jump in over six years: CoreLogic – Reuters

Europe:

  • UK productivity puzzle possibly solved? – FT Alphaville
  • Hollande warns on euro strength damaging Europe’s economy – Financial Times
  • ECB to hold rates, Draghi faces Monte Paschi grilling – Reuters
  • Euro zone economy shows signs of recovery – Reuters

Asia:

  • The Japan Story – New York Times
  • China & Japan on the brink of war – The Age
  • War with Japan means disaster, win or lose – Global Times
  • With China’s working age population declining, is it time to end the old-child policy? – The Diplomat

Local:

  • Michael Pascoe nails the problem with the Victoria (and post mining-boom) economy – The SMH
  • Reserve Bank on standby to cut interest rates again – Peter Martin
  • Investing returns of the decade – The SMH
  • Aussie Builders: “We can’t give it away” – Canberra Times
  • What the Reserve thinks… – The Age
  • Car subsidies are a state secret – The AFR
  • Warning of superannuation backlash – The Australian
  • Why your home is not worth as much as you thought it is – Property Observer
  • Real estate agents back RBA decision  – The SMH

Other:

  • Standard & Poors accused of fraud – New York Times
  • McGraw-Hill, S&P Sued by U.S. Over Mortgage-Bond Ratings – Bloomberg

Comments

  1. I thought this article perfectly summed up the entitlement mentality that now dominates this country.
    http://www.theage.com.au/victoria/parents-fight-to-reverse-payment-cuts-20130205-2dwdu.html

    This quote says it all;
    ‘Another mother, Rose Ljubicic, said she had taken on an extra 20 hours work per week in her retail job to try to make back the difference but to maintain the activities her son has previously enjoyed such as karate lessons, she is going into more and more credit card debt.

    • Yeah it’s interesting. Don’t cut back expenditure, just keep throwing it on the card. I’m just glad my parents were honest with me when there were cutbacks coming because it actually taught me something about money.

    • Did you read any further ?

      Since January 1, when the cuts were introduced, she has had to cancel a family holiday because she could not afford to fix her car after it broke down.
      It would have been only the family’s second ever holiday, after a trip to Inverloch last year.
      She has also been forced to delay buying her children’s school shoes and textbooks, negotiating with teachers to find out which books are the priority.
      Ms McAlpine, who has lost about $110 a fortnight as a result of the cuts, fears she will also have to scrap her youngest son’s swimming classes, which the cystic fibrosis sufferer takes to help with his breathing, because she cannot afford the upfront $175 fee.
      “I’m trying to pay (the fee) in instalments, but I don’t know if I’ll be able to do it.

      • Medical issues aside, big deal. There are surely other avenues for the medical issues to be dealt with.

        Having said that, I had my first holiday when I was about 18. My parents couldn’t afford it. It never was and never should be an entitlement. You trade productive labor for it, not that of other people.

        • So you’re asserting someone who *is* trading off a holiday for more important things as “entitled” ?

          When I hear “entitlement culture” I don’t think about poor people trying to get their kids into swimming lessons. I think about top-quintile earners outraged at the suggestion the private religious school they send their children to shouldn’t be subsided by public money.

          • If they’re whinging about trading off a holiday for more important things they are DEFINITELY ‘entitled’. The fact they’re trading it off is a step in the right direction though. That trade off decision is an old fashioned skill that was lost once credit cards, HELOCs and welfare boomed. Nice to see it return to the agenda.

            Can’t argue with your next point re schooling.

          • As usual doc, always the biased left view.

            Yet you and your ilk will readily stick your hand in that top quintiles pocket to feed your own sense of entitlement.Every time. The hypocracy reeks.

            Is it not even remotely fair that those who subsidise so much of the benefits the vast majority enjoys, also benefit too in some way from the state support for education they so heavily subsidise through their taxes?

            Of course not! They got their earnings from treading down on the “workers” or some other ill gotten means.

            You are better suited to Venezuela, where your beloved lefty pradigm is working such a treat.

          • Is it not even remotely fair that those who subsidise so much of the benefits the vast majority enjoys, also benefit too in some way from the state support for education they so heavily subsidise through their taxes?
            Absolutely. They can do it by sending their children to a public school.

            You are better suited to Venezuela, where your beloved lefty pradigm is working such a treat.

            I’ll tell you what. I’ll move to Venezuela when you move to Somalia.

  2. I am pleasantly surprised by the eminently sensible articles from Pascoemeter recently. He has even jumped on to the land tax bandwagon:

    They know they need to resuscitate their payroll tax base and institute a broad land tax to replace their stupid reliance on economically and socially bad real estate stamp duties and transfer fees. But that takes political courage and that’s sadly lacking.

    Time to go look for a new contrarian indicator? The Kouk, anyone?

    • The Kouk has always been my contrarian indicator. He told me the AUD was going to parity with the USD, just before the AUD went from USD0.75c to 50c.

      Luckily, I ignored his advice. 😛

    • +1

      I had to double-check the author when I read that one.

      I see from the Kouk’s Twitter feed that he’s now not so sure about the end of interest rate cutting cycle.

      “@TheKouk: Soft retail sales, both in the month and quarterly. Door swinging back open to cut!”