Felix Salmon

Counterparties

Volcker “lined up public support for a tough crackdown from other well-known financiers who are roughly his age” — NYT

Money supply chart of the day

If Matt Yglesias can wonk out with meditations on the velocity of money, then I can wonk out with a chart:

The dynamics of sovereign debt

Edward Chancellor’s masterful 10-page essay on sovereign debt crises past and present should be required reading for anybody seriously interested in the “new normal” and the way that sovereign debt dynamics might play out over the medium-to-long term. The whole thing can be found here (warning: 12.2 MB PDF file), or it’s embedded below.

The myth that risk goes away over time

Rodney Sullivan has a great column which is nominally about “risk parity” strategies, but which in fact applies much more broadly — to anybody, in fact, who buys in to the idea that if you invest in riskier assets, you’ll end up with higher returns.

Counterparties

George Soros on the crisis and the euro — NYRB

Dan Ariely on how people are like wine: describing them is not a very good way of telling whether you’ll like them — Big Think

Attacking unemployment

Unemployment is tragically, stubbornly high — and that’s going to prove devastating not only for the millions of long-term unemployed but also for the USA as a whole, if it continues indefinitely. And it’s not just the Americans without jobs who need a way out: it’s the ones in bad, underpaid service-industry jobs as well.

Why is Nick Denton suddenly so bullish?

At the very end of his profile of Henry Blodget, Andrew Goldman drops in a jaw-dropping quote from Gawker founder Nick Denton:

Jingle mail datapoint of the day

David Streitfeld has got his hands on new data from CoreLogic. It’s hard to find actual numbers in the article, or any kind of link to the data, so here’s the accompanying chart:

Lafite datapoint of the day

Andy Xie on the market for fine wine in China:

Some analysts estimate that 70 percent of China’s Lafite consumption is counterfeit. I personally experienced this on a few occasions. The people who served me fake Lafite didn’t know it, because at the very least, the prices seemed genuine. And the fakes were probably decent wines, possibly some good second growth poured into a Lafite bottle. They just weren’t the real thing. The forgers have targeted the legendary 1982 vintage in particular. Many rich Chinese have bought large stocks of 1982 Lafite. The odds are that these are all fakes. There are very few bottles of the vintage left. It is highly unlikely that one can get several cases of the real thing.