Opinion

Felix Salmon

Counterparties

Nick Rizzo
Dec 20, 2011 22:41 UTC

EU governments are propping up their banks in unusual ways — WSJ (paywall)

Why China is the “Michael Jackson” economy — Streetwise Professor

Companies are manufacturing in Puerto Rico, while off-shoring their taxes — Bloomberg

No-brainer issue of the year: let high-skill immigrants stay — The Atlantic

After all, immigrants founded almost half of the top US startup companies — Reuters

But that doesn’t mean we’re in favor of this development cash for visas scheme — NYT

Hedge funds can — legally! — pay for tips on laws before they’re passed — WSJ (paywall)

Mets and poker enthusiast David Einhorn explains why he’s short Green Mountain — Reuters

The new migrant workers: seasonal Amazon employees living in RVs — WSJ (paywall)

And VCs earned an average of 1.3%  for their investors over the last decade — Entrepreneur

COMMENT

KenG_CA, you obviously have not been paying attention to what is happening to China’s trade flows – they have been NEGATIVE for at least the last two months, they were also negative in Feb but that is probably because of chinese new year.

You also apparently have not been paying attention to how they are financing themselves, ie securing a large portion of the debt in USD – the Dim Sum market being rather tiny at the mo. Nor, apparently, are you aware of the huge stresses they are having in non-performing loans. This year China spent 10% of its GDP bailing out local governments and those governments after that bailout are STILL insolvent. This was a hard cash, money down the drain bailout, not the fake outrage “1.2trillion wholely collateralised loans to banks which they immediately paid back with interest” bailout that the US but the real McCoy.

As for “influence”, sure. So do unions. In China, big business don’t have “influence”, there ARE the goverment. The government in China is effectively a few families running the country for their own enrichment. Anyone paying the slightest attention to the news will know about a protest going on in Wukan, where the former mayor – and whose daughter is now the 11th richest person in China – is head of the property development company that buys land from the local government and magically seems to always immediately flip it for a 70% profit. Despite all evidence to the contrary, I find it hard to believe that anyone is dumb enough not to see the huge difference.

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Counterparties

Nick Rizzo
Dec 20, 2011 01:10 UTC

To survive, Italy must drastically reduce wages — VoxEU

Warren Buffett’s already down $1.5 billion on his BofA investment — WSJ Deal Journal

Romer on on Reinhart and Rogoff: not all recessions are created equal — NYT

The WSJ says there’s a dividend bubble — WSJ (paywall)

Romney is fully expecting to discuss “that picture” in the general election — Bloomberg

Romney still collections millions from Bain — NYT

And here’s an interesting look at how North Korea makes money: drugs, counterfeiting, and smuggling — NPR

COMMENT

The market seems to think there is, or reasonable enough to trade into the $5′s again.

I think muddling through is the existence for BoA in the near future. Can’t be an exciting time to be there, either.

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Counterparties

Nick Rizzo
Dec 17, 2011 01:09 UTC

“‘Comprehensive solution’ to the eurozone crisis is technically and politically beyond reach” — Fitch

Europe today is a bit like the America of 221 years ago — The Economist

Here are some charts arguing the stock market is going to rally — Narrow Tranche

The CEO of LLoyds apparently no longer has insomnia — WSJ (paywall)

While Allen Stanford is allegedly faking amnesia — Bloomberg

Credit Suisse’s new method for catching rogue traders: require vacations — Marketplace

The SEC has charged the guy who inspired “Rudy” with a pump-and-dump scheme — SEC

And Britons are drunk in 76% of the photos tagged of them on Facebook — Telegraph

COMMENT

“Two weeks is a standard that brings Credit Suisse into line with its rivals, including Deutsche Bank, Morgan Stanley and Barclays Capital. The U.K.’s Financial Services Authority recommended the two-week block leave several years ago”

and it has been standard practice on Wall Street for many years

congratulations to Credit Suisse and Felix for noticing

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Counterparties

Nick Rizzo
Dec 15, 2011 23:51 UTC

Nouriel Roubini is (surprise!) not optimistic about the economy next year — Project Syndicate

The obscure program by which Germany lent the ECB half a trillion euro — BusinessWeek

MF Global reportedly stripped “critical powers” from its chief risk officer — Dealbook

The accounting clue that revealed just how bad things were at MF Global — Bloomberg

Morgan Stanley to cut 1600 jobs — Reuters

We’ve heard this before, but Congress might be close to a spending deal — Politico

COMMENT

CDN_Rebel, I rarely agree with Dan Hess, but you have overreacted. Please take a walk around the block and calm down.

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Counterparties

Nick Rizzo
Dec 15, 2011 01:31 UTC

A new way the Euro crisis could become an American one — Business Insider

The EU reaches agreement… that prunes are not laxatives — Telegraph

James Murdoch’s entire defense is now he “did not read the full e-mail chain.” — NYT

Inside the Chinese village in open revolt against the government — Telegraph

One of Jon Corzine’s regulators throws him completely under the bus — Dealbook

I’m sure US CEOs completely deserved their 36.47% raises last year — Guardian

Surveymonkey, of all things, is now valued at a billion dollars — Fortune

And here are great photos of Las Vegas’s absurd real estate landscapes — Atlantic Cities

Counterparties

Nick Rizzo
Dec 13, 2011 22:42 UTC

Turns out Italians work more hours than Germans, the Japanese, or Americans — Ritholtz

My, isn’t that a scary UK pension shortfall? — FT Alphaville

Steve Cohen thinks insider trading rules are “vague” — Reuters

He also hates the word “edge”; and please don’t call him “Stevey” — Reuters

.01% of the US gives 24.3% of all federal campaign spending — Sunlight Foundation

The best (and worst) hedge funds of 2011 — Fortune

Economists’ favorite charts of 2011 — BBC

The personal finance guru who thinks humans are inherently weak — Fortune

Here’s a good explainer of what the Higgs Boson, er, would be — Exploratorium

Champagne sales are up 15%, nearly to peak levels — WSJ (paywall?)

And Gawker and Business Insider are now also being sued by The New Yorker’s alleged art forger — Courthouse News Service

Counterparties

Nick Rizzo
Dec 13, 2011 01:36 UTC

New rules may force Euro banks to borrow from their own governments — Bloomberg

These banks have largely bought hedges from other struggling Euro banks — WSJ (paywall)

The Merkelization of Europe, and why it’s a problem  — Foreign Policy

From Friday, 8 (still relevant) unanswered questions for Europe — WSJ Marketbeat

Mikhail Prokhorov: Russian democratic savior or oversized Putin puppet? — Reuters

11 things Brad DeLong’s gotten really wrong in his career — DeLong

Ocwen, a large mortgage servicer, now employs 16 psychologists — WSJ

LinkedIn’s P/E is roughly 300 — Fortune

And House GOP whip Eric Cantor is blocking a (Spencer Bachus-sponsored!) insider trading bill — CNBC

Counterparties

Nick Rizzo
Dec 10, 2011 00:49 UTC

Europe’s banks need to raise an extra $153 billion — Bloomberg

Warren Buffett is buying a $2 billion solar plant in California — Businessweek

While George Soros bought the same amount in MF Global’s European bonds — WSJ (paywall)

NPR couldn’t find a millionaire who thinks the “millionaire’s surtax” affects hiring — NPR

AOL might be clipping Patch — AdAge

And Norway faces a massive butter shortage — Vancouver Sun/Reuters

COMMENT

Norway has a goal of having a farm sector. The reason is to protect the landscape, but also as a security measure in case of a major catastrophe. The current financial crisis should be a reminder that Black Swans happen, and the hunt for maximum efficiency decreases the ability to deal with unexpected situations.

A bad summer created the butter shortage, and even a private market would be unable to suddenly create more cows to produce more milk. And in a totally free market, little mountainous Norway would be immediately out-competed. There would be NO butter produced in the country.

Butter is being imported to Norway right now, but it is difficult because there is a lack of butter in the rest of Europe too.

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Counterparties

Nick Rizzo
Dec 9, 2011 00:32 UTC

In this Counterparties, almost every link will have something to do with Europe:

Citigroup reckons Europe’s headed for a six quarter recession — FT Alphaville

Ireland’s central bank wants more printing presses in the event of a Euro collapse — WSJ

ING makes some charts predicting post-Euro economies — FT Alphaville

Financial stability is a pointless goal, “resiliency and resolution” is better — London Banker

Eurobonds could increase the risk of joint defaults — VoxEU

Ezra Klein: The Euro crisis is really about growth, not debt — Bloomberg

Funny: The shockingly short lifespan of today’s European treaty rumor — WSJ Marketbeat

The AP gets inside a secret CIA prison in Romania — Associated Press

Next week should have the most IPOs in the last four years — Renaissance Capital

And this Dutch wheelchair athlete was in a crash, is miraculously no longer disabled — Reuters

COMMENT

Klein’s article is meandering to the point of being useless. And unless he is simply too afraid to put down his thoughts in writing, he seems to be in the strange habit of leaving most of his thoughts unfinished, most obviously when discussing what the Germans are using the crisis as leverage for. Do they really want to “drive down labor costs in the periphery” (that wonderful euphemism for inducing depressions and creating societies of wage slaves), when they also need those wage slaves to have high enough wages to buy german exports?

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