Chovanec drops bitter pill on hapless KGB


Damn, it’s a rough wake-up call for the nation today (and the hapless KGB). After budget holes and Garnaut gloom, now comes Patrick Chovanec at BS. It’s worth watching for the slapstick of the three amigos alone. And what’s with that set?!?

David Llewellyn-Smith
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  1. What wake up call? You doomsters at MB should get out more. The ASX is up half-a-percent today, and the miracle currency
    is up from 1.028 to 1.032.

    Seriously guys, everyone else is happy, why can’t you be?

    • Can’t afford the stairwell or sound mike they use.

      And we’d have to offer Ramen and toast for pre-recording nibblies, not the clownfish and stunned mullet they serve at BS.

      • Come on Chris. All you need is a smartphone these days to do an interview. Some might be offended by poor quality video and audio, but all I care about is the quality of the content, and I reckon most MB readers would agree.

        • GunnamattaMEMBER

          I agree – It doesnt have to be anywhere near broadcast quality if the content is OK. I dont think anyone touched the sound on that or maybe their microphone mix was crap.

          The only thing I would add is that for somehting like that I would be looking at being able to bring in charts and graphs and things the way that James Macintosh does on FT.

          What they have done there is very straightforward (and good on them for doing it). They have had one camera shooting down from on high, and another off down low to the left of Bartholemeusz. The setting could be a tad nicer but maybe that was all they could rustle up with the opportunity to interview PC.

          The only quibble I would have is that having the three of them there for six minutes seems a bit weird. Maybe it was a much longer interview where all of them got to float some Qs past him.

          For a lot of this I would look at doing almost a sports panel sort of thing (bit of banter etc) – just focussing on economics/business and making sure there are decent graphics.

          • Yes the three of them is over them top, it looks like they are being schooled (which they are).

  2. With $30m of Ruperts hard-earned in their pockets, you’d think KGB could afford something more salubrious than the converted News Ltd stairwell.

    • General Disarray

      The sound was amateur at best. They had lapel mics on KGB and some room mic picking up PC. They also didn’t solo the speakers mic a few times so we get got to enjoy some old man sounds.

      Unless this was broadcast live there really isn’t any excuse for quality that bad. It

  3. “PC: I think it’s happening. I think it’s already happening. The growth squeeze took place last year. There were the beginnings of a serious meltdown in the property sector beginning really the summer of 2011. It was rescued by a new injection of credit. It’s all really credit driven. The property market has been credit driven and, rather than having a soft landing last year, what actually took place was they were coming in for a landing. And it looked like it was going to be a hard one and they waved off and they injected a lot more credit in, but they didn’t get much of a bump out of it. They just got a modest bump.”

    (He’s talking about China.)

  4. I enjoyed this exchange…

    RG: Who is issuing these bonds?

    PC: Banks are the main conduit, but banks are not always the issuers, so there are trust companies. Essentially they’re just investment products and they’re being sold to companies and they’re being sold to retail investors and often on a very short-term basis. So they roll over every 45 days or 90 days. So, you’ve got a liquidity mismatch between people who think that they’ve got essentially…

    AK: Bloody hell.

    PC: …a near cash investment that’s locked up in very long-term projects and many of those long-term projects may never actually pay off.

    AK: So, we should run for our lives.

    But hey, who cares. Westpac is up 1.5% today! The housing-led recovery is well underway.

  5. I remember thinking when I first saw Chovanec on a cable news show in 2011 thinking he was perhaps a little too bearish on China in the medium term.

    However considering the tone of the CCP and the recent growth figures it seems that he will be proved right even in the short term < 1 year.

  6. Potentially almost as interesting as what Chovanec is saying, is the fact that it now can’t be ignored. Those three (KGB) are high profile. It will now not be possible to, one day, claim that “nobody saw this coming”.

  7. dumb_non_economist

    Am I missing something? Imo that was fcuking embarrassing listening to those idiots. Is it not what MB have been putting forward since…..forever?