Submitted by Edward Harrison of the site Credit Writedowns. Last night I wrote an article reminding you that downside risk remains in the global economy. While I have been singing a more bullish tune in regards to the prospect of a technical recovery in 2009, I am concerned about a double dip as a likely […]
Read more...The crucifixion of Latvia Ambrose Evans-Pritchard, Telegraph Optimism is not enough for a global recovery Wolfgang Munchau, FT China’s recovery still isn’t supporting (much) global demand Brad Setser German credit crunch deepens Ambrose Evans-Pritchard, Telegraph Cantona kick fan still hated 14yrs on The Sun Silk Road threatened by melting glaciers New Scientist How the world’s […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. With more and more major economists predicting recovery sometime later this year, many have forgotten that downside risks remain. Berner, Roubini, Volcker, Krugman and Bernanke have all come out essentially saying they would not be surprised to see a ‘technical’ recovery at some point later this […]
Read more...Six Flags Files for Bankruptcy DealBook Blog – NYTimes.com Next, the Retirement Bubble Barrons. The coming generational storm is going to hit the U.S. as it already has countries like Japan, Germany and Italy. This article offers a potential solution for individual retirees. Paul Krugman’s fear for lost decade Will Hutton, Guardian North Korea responds […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. The chain of events whereby easy money leads to malinvestment that impoverishes a society is now fully manifest in the United States. You remember Victorville, CA where new homes were being demolished because it cost more to maintain them than to demolish them? (see post here) […]
Read more...Reflektionen von Nassim N. Taleb und Daniel Kahneman zur Finanzkrise Blick Log. Taleb and Kahnemann together in one place. 60 minute video clip Chart of the week: Roubini and the VIX Felix Salmon Deflation v. Inflation Sudden Debt. Forget the math here. This article makes the point that asset prices have declined while debts have […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman has a good piece out today highlighting the differing economic policy agendas of the BRIC group (Brazil, Russia, India and China). In it he suggests CRIBS is a more appropriate moniker for the group as […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. “In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the […]
Read more...Edward Harrison here with another edition of the links plus the antidote du jour. Two Ways to Deleverage an Economy Bill Bonner Stand By Me: Banks’ exposure to eastern Europe The Economist Terror Names Linked To Doomed Flight AF 447 Sky News (This story does not seem to be getting any media play as far […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. During the last generation, the economics profession has veered toward a ‘science’ model of economics and finance. The intellectual underpinnings for this development began with the Efficient Market Hypothesis (EMH) and has continued in no small measure due to what is often termed ‘University of Chicago […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. The drama at Bank of America continues with Ken Lewis testifying before Congress today. Most of the events surround claims by Lewis that he was coerced into doing the Merrill deal by Hank Paulson and Ben Bernanke. I chronicled these events when they were made public […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. The U.S. Labor Department came out with its latest weekly report. The data were mixed because initial claims are pointing to recovery, but continuing claims continue to hit new records. The long and short: the U.S. Labor market remains weak and will continue to be weak […]
Read more...California nears financial ”meltdown” as revs tumble (Can you say “Bankruptcy or Obama?”) Countrywide Exec Warned The Fed On Toxic Mortgages Tom Lindmark (Apparently, the head of risk at CFC was ignored not only by senior management but by the Fed too. This is Bernanke’s Fed we’re talking about, not Greenspan’s.) St. Regis resort in […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. I am not the only one who sees events in Latvia as a potential catalyst for further downside risk to the reflation trade. Mary Stokes over at Nouriel Roubini’s site has a very readable post out on why we should be watching events in that tiny […]
Read more...Submitted by Edward Harrison of the site Credit Writedowns. We have just learned that Fiat has successfully completed its deal with Chrysler. This means that the bankrupt ‘Old Chrysler’ will now have far fewer cash and assets available for creditors and that it will be liquidated with large or total losses likely for creditors. Dissident […]
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