Links 22 June 2017

Global Macro / Markets / Investing: Bear Stearns Staves Off Collapse of 2 Hedge Funds – NY Times Why Do Democracies Fail? – The Atlantic The End of Car Ownership – WSJ Robots Are Eating Money Managers’ Lunch – Bloomberg A study has demolished the biggest myth about quotas – The Independent Forget Trump-Generated Volatility. The World Is Awash in

Latest posts


Exclusive: Steve Keen on the secret source of eternal Australian growth

Exclusively from Professor Steve Keen: How to delay a recession Much was made of the fact that Australia recently replaced The Netherlands as the world record holder for the longest period without a recession (using the colloquial definition of two consecutive quarters of negative growth). The Netherlands went just under 26 years (103 quarters between


Macro Afternoon

by Chris Becker This time only mainland Chinese stocks are enjoying the feel of green, led by rebalancing in the MSCI Index as a sea of red screens swamped the rest of Asia, led by a big selloff in Australian stocks. Yen is gaining as the safe haven once more alongside a small blip higher


WA shreds skilled migration list

By Leith van Onselen WA Premier, Mark McGowan, has signaled that unlike his federal Labor counterpart, Bill Shorten, he actually cares about his workers. With WA unemployment and underemployment sky high: McGowan in March wrote to Prime Minister Malcolm Turnbull to remove Perth from the Regional Sponsorship Migration Scheme, thus effectively preventing a pathway for


HIA: dwelling construction is gonna fall

By Leith van Onselen The Housing Industry Association (HIA) has released its latest Housing Outlook, which forecasts a steady decline in dwelling starts over the next three years, with renovation activity also forecast to peak before falling: “The housing boom was not consistent across Australia and now with NSW and Victoria cooling, all indicators are


NZ Labour backtracks on immigration cut

By Leith van Onselen After months of promising to slash New Zealand’s immigration intake by the “tens-of-thousands”, the opposition Labour Party appears to have backslid somewhat, promising to leave the excessively high permanent migrant intake untouched. From Interest.co.nz: Labour leader Andrew Little says he is confident the party’s new regional visa policy will ensure migrants


Westpac leading index falls away

Via Westpac: • The six month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, eased from 1.01% in April to 0.62% in May. The index is pointing to a clear slowing in momentum. While the growth


There’s gold in that thar Fed

From Macquarie: Fed still gold’s key risk and opportunity  The Fed remains the key risk and opportunity for gold. Raising rates despite low inflation, and promising far more hikes to come, seems bearish gold and in the short-term it is. But ultimately we believe the Fed will realise it can’t deliver –so rates will


Pressure builds on Labor to back Gonski 2.0

By Leith van Onselen Earlier this month it was the Grattan Institute that urged Australia’s politicians to back the Coalition’s Gonski 2.0 needs-based school funding package, with Grattan contending that the lion’s share of the extra $22 billion that Labor promised to spend at the 2016 election would represent wasteful investment that would not deliver


Mark Latham: Slash immigration for affordable housing

By Leith van Onselen The NSW Government’s fake concern over the dire state of Sydney housing affordability continued yesterday with the release of the State Budget, which included more token measures to boost supply. From Australian Broker: The NSW Government has announced it will spend more than $720m over the next four years to address


NSW Budget rides Sydney housing bubble to the stars

By Leith van Onselen The NSW Budget for 2017-18 has been released, and as expected, it revealed a big Budget surplus of $4.5 billion in 2016-17, thanks to the booming property market, with smaller surpluses expected over the forward estimates: The 2016-17 budget result is expected to be $4.5 billion, $0.8 billion higher than in


Franchise Council scuttles anti-slave labour bill

Maybe it will have to be revolution: The Turnbull government has put its bill to prevent worker exploitation on the backburner, delaying a vote until at least August – a full two years after the 7-Eleven wage scandal was exposed. The move comes amid an extensive behind-the-scenes lobbying campaign by the Franchise Council of Australia, led


Melbourne’s education “super city” nears

From The Herald Sun: A BOLD vision to transform Melbourne’s west with a $30 billion “super city” is nearing reality with the State Government to decide on the project within months. A high-level consortium has been solidly negotiating with government officials over the past year after the plan was first mooted in 2015. The Herald


AFR lops another limb off Naked CEO

The Naked CEO’s tentacles may spread far but so far as the AFR: Remember our Tuesday revelation that Professions Australia, which “welcomed” CPA’s “fiercely independent” review led by quondam Malley admirers, also has Malley’s direct report Adam Awty on its board? Well, it gets better. Guess who was Professions Australia chairman until May 2015? Alex


Do-Labour Malcolm toys with coal power loons

Via The Australian: The Turnbull government is ­preparing to back the construction of new coal power stations to prevent a dangerous shortfall in electricity supplies, using “reverse auctions” to replace ageing coal-fired generators with new technology already embraced in Japan and China. The new agenda promises to scale back the need for a controversial clean