Opinion

Felix Salmon

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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Counterparties

Nick Rizzo
Dec 8, 2011 02:43 UTC

Here’s the leaked report from European Council President Van Rompuy  — FT

Herman Achille Van Rompuy has been said to have the “charisma of a damp rag” — Reuters

Greek deposits continue to fall – Spiegel

These charts show that it’s hard for the US to decouple its economy from Europe — Tim Duy

These charts show that the ECB might have to start printing money — VoxEU

And these charts show who’s dropping out of the US labor force — Modeled Behavior

The 30-year-old MF Global bankruptcy “boy wonder” who despises Corzine — Fortune

A well-reported portrait of what it’s like to be dragged into poverty — HuffPo

And the Gingrich campaign still has a lot of debt, half of it for private jets — WaPo

Counterparties

Nick Rizzo
Dec 6, 2011 22:24 UTC

Uh-oh: construction’s grinding to a halt in Chinese “ghost towns” — WSJ

I’m a big fan of Paul Krugman’s headline pun — NYT

Corzine suggested he’d quit if board members didn’t trust his MF Global Euro bet — WSJ

After promising not to, Wall Street firms have re-violated fraud laws at least 51 times — NYT

Be afraid of a run on the shadow banking system — WSJ

This is grisly: for-profit hospices are paying referral fees for dying patients — Bloomberg

Romney spent $100,000 in state money to erase his gubernatorial record — Reuters

A list of historical figures Newt Gingrich has compared himself to — The Atlantic Wire

Yahoo prepares to battle a brain drain — WSJ

Sorry, “international waters” is not itself a business model — Atlantic Cities

Why does the police department of Tampa, Florida need a tank? — The Daily

COMMENT

Rizzo, a suggestion: Just put “(paywall)” next to a link if it’s like the WSJ situation. You choose your counterparties, we choose whether to click

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Counterparties

Nick Rizzo
Dec 5, 2011 23:03 UTC

Mario unveils a new austerity budget to rescue the princess save Italy’s credit rating — NYT

But Stiglitz argues that cutbacks aren’t what the euro zone needs — Project Syndicate

And despite Merkozy’s deal, S&P could downgrade 15 euro nations — Bloomberg

Look what’s driving public debt in the major European economies — Touchstone

The worldwide decline of “safe” assets — FT Alphaville

Goldman: home prices will drop another 2.5% before bottoming out — FT Alphaville

Bank deposits are up, but it’s “hot money” — WSJ

The Connecticut town where one-third of the population is over 60 — NYT

And Google and Facebook might already receive half of global digital ad spending — AllThingsD

COMMENT

Another link for you, given you insisted on giving the Bloomberg stories – and the regurgitations in ProPublica – a public hearing. Some of these statements are rather familiar to me…..

http://www.federalreserve.gov/generalinf o/foia/emergency-lending-financial-crisi s-20111206.pdf

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Counterparties

Nick Rizzo
Dec 3, 2011 02:01 UTC

Soros: The global financial system is in a “self-reinforcing process of disintegration” — WSJ

US economy adds 120,000 jobs, unemployment rate falls to 8.6% — BLS

Brad Plumer: Why Americans are leaving the labor force in large numbers — Washington Post

Rogoff: 5 big problems with capitalism as we know it — Project Syndicate

Shiller: The best advice I ever got is to ignore celebrities — Fortune

Mentioning a company on CNBC raises its stock price (pdf) — UC Berkeley

90% of bachelor’s degree recipients graduate with less than $40,000 in debt — NYT Economix

And hedge funds are trailing the market to the tune of about 6% this year — The Economist

COMMENT

@minderbinder Good catch! It was on Klein’s wonkblog, and I stupidly didn’t see the byline. (Sort of the way people think Counterparties is written by Felix.) It’s fixed now. Thanks for noticing.

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Counterparties

Nick Rizzo
Dec 1, 2011 23:49 UTC

The Euro debt crisis in 8 graphs — Washington Post

Mario Draghi: Time for the “Euro area design” to adapt — ECB

Why unlimited monetization and eurobonds are right around the corner — Credit Writedowns

Here’s the full Massachusetts AG’s foreclosure practices lawsuit — Mass.gov

Foreclosures are at an all-time high, but mortgage delinquencies are down — LPS

“The hacking scandal could be the best thing that ever happened to News Corp shareholders” — Bloomberg

Om Malik thinks Yahoo’s like “salmon farmed on carcinogens” — GigaOm

And Tom Glocer, my boss’s boss’s boss’s boss’s boss, is out — Reuters

COMMENT

Here’s something for ya on why households who can observe the same stock market data think differently about investment potential. http://bit.ly/uY1hzJ

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Counterparties

Nick Rizzo
Dec 1, 2011 00:27 UTC

Why France may now be the biggest obstacle to ending the Euro crisis — WSJ

Understanding Corzine’s bet on Europe — DeLong

To fix bank executive compensation, tie it to CDS spreads — Dealbreaker

Brad DeLong (again): We have a moral obligation to tax the rich at the peak of the Laffer Curve — Project Syndicate

Why is Schwarzman supporting Romney? Bain Capital made him a lot of money — Bloomberg

In a fit of billionaire whimsy, Warren Buffett buys his hometown newspaper — Reuters

Silver Lake thinks $16.60 a share is a good price for a chunk of Yahoo — Bloomberg

COMMENT

@DanHess Just to quickly set the record straight, I do the Counterparties roundup posts, not Felix, and I’m American. I was also merely linking to DeLong’s position, not necessarily agreeing with it myself. We link to lots of posts that we disagree with.

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Counterparties

Nick Rizzo
Nov 30, 2011 01:43 UTC

Some of today’s many stories from Counterparties.com. Now with extra underlinks! Check it out.

“War games” – How companies are already contingency planning for a Euro breakup — Reuters

Ex-NOTW editor: “You have to be cleverer than the criminals” — Guardian

S&P cuts ratings for all “Big Six” banks — WSJ Marketbeat

RIM is apparently willing to have its customers use better phones made by competitors — WSJ

$200 million from MF Global’s customers turns up at British JP Morgan Chase — Dealbook

George Packer paints a great portrait of one occupier of Wall Street — New Yorker

John Heilemann: Is 2012 the same as 1968? — New York

Keith Gessen writes about his arrest in New York City — New Yorker

Thomas H. Lee is looking at buying out Yahoo’s US business — Reuters

And the Little Printer That Couldn’t Do Anything – BergCloud

COMMENT

The 1920s style piano music in the Little Printer ad is highly appropriate.

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Counterparties

Nick Rizzo
Nov 29, 2011 00:19 UTC

Is it cheaper for Germany to bail out EU countries rather than leave the euro? — Washington Post

Weisenthal and Platt question the importance of debt-to-GDP ratios. It’s possible they didn’t read all of This Time Is DifferentBusiness Insider

James Surowiecki argues that Italy and Spain are still saveable — The New Yorker

While Wolfgang Munchau says the euro zone could be only days from collapse — DeLong

Daniel Kahneman: “Emergent weirdness is a good bet” — Freakonomics

“Fitch slams US indecisiveness, delays AAA rating decision” — FT Alphaville

Krugman gleefully quotes Greenspan getting everything wrong in 2005 — NYT

3 Connecticut Gold Coast money managers win $254 million from the lottery — Greenwich Time

The Silicon Valley startup that built the “matrix” behind the War on Terror — BusinessWeek

And a long, controversial, intriguing piece on the mysteries of l’affaire DSKNYRB

COMMENT

wow. that NYRB story on l’affaire DSK is really cool. It reads like something outta “La Femme Nikita” and its ‘Plunge Protection Team’. I look forward to the DSK espionage movie.

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Counterparties

Nick Rizzo
Nov 25, 2011 23:00 UTC

A really good overview on Angela Merkel saying “nein” to euro bonds — Spiegel

John Muellbauer: The solution to Europe’s crisis? Conditional euro bonds — Vox EU

European banks still have trillions of dollars of bad loans they’re unable to sell — IFRE

Is Canada’s current housing market frothier than pre-crash America? — The Economist

Why MF Global’s auditors could rubber stamp risk at Goldman, JP Morgan — Bloomberg

The AT&T / T-Mobile deal looks pretty unlikely to be approved — NYT

The Rise and Fall of Bitcoin — Wired

And Dan Primack argues that the internet bubble 2.0 may not have burst yet — Fortune

COMMENT

Call it blind patriotism if you choose, but I think there is a simple reason why Canada, Australia and Sweden are NOT due to the same calamity as America. The first big factor is that these are smaller countries with stable/strong economies that invest next to nil in their militaries and have vibrant multi-party discussions. Second is that while foreign investment is helping to drive prices skyward, those investments are fully paid upfront so the kind of calamity that befell America in regards to massive foreclosures has a next to nil chance. Is the Canadian housing market overpriced? Sure, but is it due for a stunning crash on the order of 25%? I wouldn’t take that bet on any terms.

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Counterparties

Nick Rizzo
Nov 23, 2011 23:19 UTC

Izzy Kaminska has an intriguing post on what happened with today’s bund auction — FT Alphaville

European banks are avoiding regulations with “false deleveraging” — Bloomberg

Hungary has asked for a “precautionary credit” from the IMF — Telegraph

The “darker side” of US GDP has some bad news for us — WSJ Real Time Economics

America faces two big “fiscal cliffs” in the next 14 months — The Economist Free Exchange

The big rumored mortgage settlement might not include California — Reuters

“How to steal money from Manhattan, with Columbia’s pro-biz think thank” — The Awl

And Tyler Cowen has a great idea for how to handle the NBA strike — Marginal Revolution

Many more links are available at Counterparties.com. Have a great Thanksgiving, if you’re in a country where that’s done.

Counterparties

Nick Rizzo
Nov 23, 2011 03:09 UTC

Izzy Kaminska cleverly argues that Swiss bonds are now Giffen goods — FT Alphaville

“France isn’t trading like a AAA” — Bloomberg

Latvia and other European periphery countries are looking like coal mine canaries — FT

A European bank flaps it wings, a loan is denied in Australia — WSJ

Predicting the depressing future of economic policy decisions — Credit Writedowns

8 reasons extending unemployment benefits will boost the economy — Rortybomb

How “long-term unemployed” became synonymous with “unwanted” — National Journal

Problem with thinly traded companies: “eventually they’re no longer thinly traded” — Dealbook

And Errol Morris has a great little documentary about the “umbrella man” and JFK’s death — NYT

COMMENT

Groupon is now trading below its IPO… Buy a share quick as a souvenir!

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Counterparties

Nick Rizzo
Nov 21, 2011 23:22 UTC

Some fresh links selected today from Counterparties.com:

Credit Suisse: The “last days” of the Euro are here — FT Alphaville

Goldman: “SOVEREIGN RISK SPREADING LIKE A WILDFIRE” — BI

FMCN’s stock dropped 40% on this Muddy Waters report calling them lying liars — Zero Hedge

MF Global trustee: Actually, we think we’re missing $1.2 billion — Market Watch

“Mr. Nocera – You have destroyed everything and everyone related to Steven J. Baum PC” — Dealbook

A really big visualization of money — xkcd

Fresh off its pension overhaul, Rhode Island experiments with “work sharing” — WSJ

The continuing hunt for Anyone But Romney, illustrated graphically — National Post

And The Atlantic is now making more from digital than print advertising — NYT

 

COMMENT

“MF Global trustee: Actually, we think we’re missing $1.2 billion”

Let’s be accurate: after the “collateral” was taken to cover 100% of financial institutions–ignoring whether the collateral was client or firm money–the clients are short.

Welcome to BidenVille, MF Global investors. Those of you who thought the 2005 R&P Act wouldn’t affect you because you would never have to declare bankruptcy are reaping the whirlwind.

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