Links 5 March 2013

Global Macro/Markets:

  • Warning signs for US corporate bonds – Financial Times. Investors demand higher yields even for safest borrowers.
  • Well, if this isn’t a bullish sign for securitisation – FT Alphaville
  • The M&A pickup – FT Alphaville
  • Why having a lot of bankers is dangerous for any economy – Quartz
  • Currency War Turns Stimulus War as Brazil Surrenders – Bloomberg

North America:

  • Greater Vancouver housing sales plunge 29% – The Globe & Mail
  • Canadian home prices over inflated by 20 per cent: Fitch – The Globe & Mail
  • “Fitch identified borrowr equity as strongst drivr of mortgage default (in Canada)” – Reuters
  • Flaherty warns banks over igniting mortgage war as BMO cuts rates – The Globe & Mail
  • Trading in America’s students expands – FT Alphaville
  • Net US crude imports fell by 437,000 b/d last year to 8.5m b/d, lowest level in 15 years – Financial Times
  • How the Nation Resolved Its First Debt Ceiling Crisis – Liberty Street Economics – New York Fed


  • Europe is Drowning Under Too Much Government – Peak Prosperity
  • Social situation in Greece deteriorates – yanisvaroufakis
  • Euro Leaders Demand Austerity as Italy Nears New Vote – Bloomberg
  • Anger builds in Italy as old guard plots fresh technocrat take-over – The Telegraph
  • Brave Ireland is the poster-child of EMU cruelty and folly – The Telegraph


  • No end in sight to stand-off in Guangdong village over land deal – South China Morning Post
  • Stand-off in Chinese village over land grab – Financial Times
  • Ex-police in China get rounded up by police after petitioning in Beijing against corruption – NBC News
  • China’s push to cool housing raises questions – New York Times
  • “It is increasingly clear that Chinese growth will slow from Q2 onwards” – Financial Times
  • China has overtaken US as world’s largest net oil importer – Financial Times.
  • Signs of nightmare scenario in China’s latest economic data – South China Morning Post
  • The pollution constraint on China’s future growth – FT Alphaville
  • Has the time for BoJ talk passed? – FT ALphaville
  • China property curbs may trigger short-term home buying rush – Reuters


  • A fistful of dollars – The SMH
  • Victoria at risk of NSW-style planning fiasco – The Age
  • Do nothing, just wait, and hopefully the economy will improve – The Age
  • Iron ore tipped to fall below $60 a tonne – The AFR


  • Damn straight I’m a college grad! Paper or plastic? – FT Alphaville
  • Balancing budget over the cycle is not a sound fiscal rule – Bill Mitchell


  1. Alex Heyworth

    Looks like the bubble is finally bursting in Canada. How long before we join them?

    • Exactly.

      Net US crude imports fell by 437,000 b/d last year to 8.5m b/d, lowest level in 15 years

      This is the clearest indicator you’ll get of recession. All fudged government stats to one side, this metric is completely reliable and tells the story of contraction.

  2. TheRedEconomistMEMBER

    Just had a quick browse of the AFR.

    There is an article about land release tightness with the developers (Sotckland and Australand) plus Barry O’Farrell talkingabout release 5500 lots in NSW this year.

    Plus the usual claptrap aboput smart design (code for Dog boxes)

    • Alex Heyworth

      If the big developers had half a brain, they would already be using prefab techniques a la HufHaus. The scale of their big projects would enable them to set up the prefab factory on site. They would save on costs and the result would be far better quality than the current building methods.

      • I belive Tamawood tried this but the unions put down there foot saying the labour force would be reduced

  3. Another collapse in the construction industry;

    From the CT: Nishi’s builder in financial collapse allegedly owing subcontractors millions of dollars

    ….but the developers of the stricken Nishi building say they are shocked by the collapse of the main contractor on the $550 million project. All bills were paid apparently….

    Read more: