Lunchtime Links 6-4

June 4, 2010

CHART: Census responsible for almost all job growth (Culp, Reuters) 411k census jobs added in May. 431k total jobs added.

Not for the forint-hearted (Alloway, Alphaville) There could be some political posturing behind these comments from Hungarian officials — who suggest, in effect, that Hungary is the next Greece. Still pretty unsettling.

Euro hits 4-year low on mistranslated French comment (Reuters)

CBO issues Fed-flattering propaganda (Naked Capitalism)

Global bank capital pact advances (Enrich/Paletta, WSJ) Article says the new Basel accords could require $1.2 trillion of additional capital and liquidity. Reminds me of Greenspan’s comment that U.S. banks should carry 15% TCE, which would force them to raise similarly huge sums. While everyone agrees banks need more capital, regulators aren’t actually going to force them to raise it while they’re trying to follow their faux dual mandate of not just keeping banks safe, but also encouraging them to “lend more to get the economy going.” The two goals directly conflict.

Happiness may come with age, study says (Bakalar, NYT)

Keanu Reaves gives £50 million of his Matrix residuals to movie’s behind-the-sceners (HelloMag)

Big Picture captures birds caught by the oil spill (Globe)


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Even if you expand that to tier 1 capital, that’d bring the economy to a halt like a train jumping the tracks.

Most banks would either have to halve their assets or double their tier 1… which would dilute existing stockholders, well, 100% if we’re assuming its all common. I’m sure everyone who owns BAC, et al (or, eveyone with a mutual fund) would be thrilled to see the massive transfer of wealth from the middle class investors to the wealthiest of wealthy investors (china, oil sheiks anyone?), the only people who would have the cash or liquid assets to fund those sorts of stock issuances.

In addition, banks would probably either continue to trim payrolls and/or cancel hiring plans and would certainly dramatically increase the interest yield they were looking for.

Posted by Beezlebufo | Report as abusive

The Euro was worth about .87 just a few years ago. Why should it surprise anyone that it is headed back that way? The survival of the EU is itself in doubt.

Posted by cuddyent | Report as abusive