Felix Salmon

Counterparties

Some of today’s favorite links from Counterparties.com:

The IMF is considering getting involved with the EU’s bailout investment vehicle — Reuters

How to make ETFs less risky

Harold Bradley and Bob Litan made some very good points about ETFs in their Congressional testimony last week — testimony which Paul Amery today greets as “a mixed bag”. But it’s hard to argue with this:

Why Netflix stock is so volatile

netflix 2011-10-25.png

Daniel Indiviglio looks at the impressive plunge in Netflix’s stock price, both today and over the past three months or so, and wonders what on earth could have happened in the real world to justify such a plunge.

Market failure of the day, Connecticut commuter department

Shelly Banjo’s article about the multi-year waiting lists for parking spots at Connecticut train stations is going somewhat viral, for good reason:

Counterparties

Most Greek bailout money has gone to pay bondholders — The Washington Post

The EFSF could become more or less an insurance company — The New Yorker

“If you can show correlation [of greater than zero] then you can buy sovereign CDS” — IFR

Netflix and the economics of nonrival goods

Netflix released its third-quarter results this afternoon, showing net income of $62 million, down slightly from the second quarter’s $68 million. And things are going to get much worse before they get better: “We expect to report a global consolidated net loss,” the company said, in the first quarter of 2012. Maybe the company shouldn’t have spent $40 million, over the course of the third quarter, buying back 182,000 shares at an average price of $218 apiece. (In the wake of today’s results, they’re trading in the $80s.)

Obama’s pathetic refinancing initiative

HARP II is being announced with great fanfare today:

Across the country, nearly 11 million owe more than their property is worth.

Millions of these people have done everything right. They’ve paid all their bills and kept current on their home loans. But right now, they’re stuck with higher payments because their mortgages are underwater. They’re not eligible to refinance because the decline in home prices have made their property worth less than what they owe. And that’s a problem President Obama knows must be addressed…

The unhelpful lionization of small business

Jared Bernstein has the wonky version in the NYT, but Jim Surowiecki has the soundbite:

Counterparties

Who’s ready for six days of EU debt bickering? — Bloomberg

German newspapers: not such big fans of a leveraged EFSF — Der Spiegel

France could definitely lose its S&P AAA rating. Welcome to the club — Bloomberg