Prieur’s readings

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This post provides links to some interesting articles I have read over the past few days that you may also enjoy.

• William Poole (Financial Times): A market solution to secure banks’ future, May 21, 2009.
Would bankers rather face the discipline of subordinated debt or much heavier Washington regulation, including opaque and changing rules?

• The Economist: That kitchen-sinking feeling, May 20, 2009.
Japan’s woeful economic peformance may mean that things can’t get any worse.

• Michael Pettis (Financial Times): Asia needs to ditch its growth model, May 19, 2009.
The basic assumption that implicitly underlay Asian development – that American households had an infinite ability to borrow and spend – has been seen as false.

• Ambrose Evans-Pritchard (Telegraph): Asia will author its own destruction if it triggers a crisis over US bonds, May 18, 2009.
Japan beware, crashes have a habit of bringing regime change.

• Andrew Bary (Barron’s): U.S. Blues, May 18, 2009.
The bear market in Treasuries will worsen, because of a glut of government bonds. Instead, consider high-yielding mortgage securities and certain munis.

• Julia Ioffe (The New Republican): Prophet motive, June 3, 2009.
Is Nouriel Roubini lucky or just good?

• Martin Wolf (Financial Times): This crisis is a moment, but is it a defining one?, May 19, 2009.
Is the current crisis a watershed, with market-led globalisation, financial capitalism and western domination on the one side and protectionism, regulation and Asian predominance on the other? Or will historians judge it, instead, as an event caused by fools, signifying little.

• Woody Brock (John Mauldin’s Outside the Box): The end game draws nigh – the future evolution of the debt-to-GDP ratio, May 18, 2009.

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1 comment to Prieur’s readings

  • Paul Sandison

    Michael Pettis’s article is complete conjecture. There are no figures, and this is from a professor of Finance? The real outcome of China’s internal market expansion will be shown further along in time. He obviously does not know himself and is just writing utter waffle. This is very poor. At least China’s fiscal spending is way ahead of the EU countries’ totally insufficient anti-cyclical spending because they haven’t a clue, while the US have largely merely succeeded in transferring massive wealth from the taxpayers to the banking and investing class and put very little into restructuring the economy and building infrastructure for NEW industries to replace thir unsustainable consumption bubbles, apart from the very small fraction destined to stimulate green energy and health products, and maybe more fuel efficient (but not green) cars. If the world economy does not get into the black, yes, China might eventually have difficulty maintaining 7% GDP growth since the export part of its revenue will thus continue to suffer, and when the US dollar tanks as it will, the resulting inflation will implode the 52% of US debt the Chinese are holding. But none of the above is China’s fault, and whose fault is the whole global crisis anyway, Professor Pettis? As long as China continues to grow, the BRIC countries plus CSAA (Canada, South Africa, Australia) will be much less affected by the appalling US leading innovations in financial decadence. For this we are thankful. Pettis appears to be a US financial decadence apologist neo-con trying to put the blame on China. I wonder where he worked before – Wall Street?

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