Counterparties

By Nick Rizzo
November 19, 2011

Europe’s web of debt, illustrated — BBC

S&P makes a bit of an error with a headline about Brazil’s credit rating — Bloomberg

Miners in Australia can earn $200,000 annually — WSJ

The new head of the FDIC “could make Sheila Bair look like a kitty cat” — WSJ

The “do-nothing” economic budget plan that would save us $7.1 trillion — Washington Post

Krugman: let the Supercommittee fail — NYT

Nate Silver on which economic indicators best predict Presidential elections – Five Thirty Eight

Sean Parker’s thinking of Thanksgiving, says the tech “gravy train” is almost over — CNET

Newsweek staffer: “I mean, Regis Philbin is our cover this week” — WWD

One of the worst parts of the euro zone crisis, for me, is watching the televised vindication of that nut Nigel Farage — Zero Hedge

12 comments

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“Miners in Australia can earn $200,000 annually.” So do firemen in Vallejo.

Posted by walt9316 | Report as abusive

I know what a talisman is, and I know what it means to have an effect, but what does it mean to have a “talismanic effect”? And does it work on women other than Tina Brown?

Posted by Christofurio | Report as abusive

Perhaps the Euro crisis should be seen more from a political angle than purely economic. It appears more and more to be a crisis in Germany’s plan to control Europe via the imposition of the Euro on the continent and afterward on the UK. In fact the German finance minister just today said the UK would fall under the Euro before long. If there was ever a barely disguised proclamation of imperialism that has to be it. If the UK wants to negate the victory of 1945 joining the Euro would be that capitulation.

Posted by Chris08 | Report as abusive

that’s a little harsh on Nigel. Pueri Alleynienses and all that…..

Posted by jonners | Report as abusive

Fours things are going to occur during the remainder of November 2011

1. The two party super committee – both parties owned by a higher order $$$$$$ of interest – will fail to make a meaningful deal….

2. European debt default will occur on a large scale …..

3. The first and second news events will be attributed by Fox News as the precipitating causes of the greatest macroeconomic collapse in history ……

4. And over the next 7 trading days ………………… a new macroecono­­mic patterned science will undergo viral recognitio­­n

Posted by thefractalist | Report as abusive

Chris08, Germany and the Germans had no desire to have the EUR and many leading German economists warned against it.

It was Mitterrand who demanded this course to end the supremacy of the Bundesbank over interest rates. In the ECB Germany has the same votes as Malta. The pressure on the ECB to monetize and thereby tax the creditors by stealth is resisted in Germany for the oldest of reasons:

This is taxation without representation.

Yours, sincerely from Germany.

Posted by Finster | Report as abusive

Finster:

But who exactly are those “creditors”? Aren’t they mostly the banks? Was any democratic process involved in their making those ridiculous loans outside Germany? Did you, as a German citizen, vote for Deutsch Banks and the lot showering the Irish and Spaniards with a huge amount of free credit? Why do we have to make sure that THEY will get out of it scot-free?

There is a complete one-sidedness in all of this, a very pre-modern one, almost as if modern liberal concepts like bankruptcy, default, limited liability, debt forgiveness etc. have been thrown out the window. The “creditors” are supposed to be also responsible in credit/debt issues. That “Greek haircut” joke is hardly enough.

I won’t talk in such a tiny place about what I think is your obsessive fear of inflation, or whether “monetizing” is a good idea or not, but you should try to hold your banks accountable a lot harder. And I honestly don’t see any good, for you in the short-medium-long run, in supporting your elites’ hard-line attitude. Be careful what you wish for.

Posted by alexisdelarge | Report as abusive

Germany is about as popular as Andrew Mellon right now.

“They hired the money.”

The banks should be taken to task, put into insolvency and recapitalized with losses to the bond holders, same as should have happened after the real estate crisis in the States. But while TARP and the FED conveniently put off that outcome in the U.S., the ECB is actually under German pressure permitting the bond markets to put the gun to the profligate governments and force consolidation.
When Bill Gross and PIMCO attempted the same in the U.S., the FED disarmed them and sent the bond vigilantes packing, with help from the PBoC.

I still consider collapsing governments and elections like in Spain more democratic than a central bank that exceeds its mandate and finances by printing without parliamentary control. If the end has to be an end to the EURO and independent currencies that track local productivity to combat unemployment, then so be it.

Posted by Finster | Report as abusive

Really grim thought: Farage emerges as the next Churchill, warning, but being ignored, about the dangers of the EU.

Posted by ARJTurgot2 | Report as abusive

“Miners can make $200,000 annually”. Horror! someone making real money for actual work rather then rent extraction.

Posted by chris9059 | Report as abusive

“Miners can make $200,000 annually”. Horror! someone making real money for actual work rather then rent extraction.

Posted by chris9059 | Report as abusive

chris9059, it’s not a horror, but they are engaged in extraction. And since the natural resources existed in the ground without someone creating them, in the Ricardian economic sense we can refer to the ownership of those resources as giving rise to “rents”. So it just strikes me as funny you used that phrase.

Posted by TGGP | Report as abusive