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Archive | July, 2010

Economists claim the Bail-outs worked!

According to an article in the New York Times (Thanks to Lars Eirik for noticing and posting) on the 27th of July, two economists Alan Blinder, a Princeton professor, former Clinton advisor and former board member of the Fed, and Mr Zandl chief economist at Moody’s Analytics claim that with a “complex quantitative model”, they […]

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Stress Test illusion

Did you know that the Hindenburg zeppelin had been rigorously stress tested? And that the design of the Maginot line was almost impregnable? Everything that has ever sunk, exploded, tipped over, burst into flames, fallen down or simply not worked had been stress tested in its day. The problem is that stress tests are rarely […]

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The power of debt

Owe a man ten pounds and he has power over you. Owe him ten thousand pounds and he has a lot of power over you. But owe him ten million or ten billion and YOU have power over HIM. Debt is more fickle and slippery than money or direct wealth but it still has power. […]

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FED/ECB collision course

I have written for a while now about how I see a clear division and open opposition hardening between the US and Europe, Washington and Berlin, the FED/IMF and the ECB. Well today we got to see that opposition break out into the open. The FED and the ECB are now on a collision course. […]

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GM has brilliant idea.

For those of you who felt perhaps the financial world might have been lying about how they have learned their lesson and reformed their ways – this one is for you. Sometimes you just have to sigh. DETROIT (AP) — General Motors Co. will buy AmeriCredit Corp. for $3.5 billion, a deal that allows the […]

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Bernanke and the Wall Street tumble

The markets waited with baited breath. Bernanke began to speak ….. and the Dow plunged straight down. As soon as he said the words, “remains unusually uncertain”, about the outlook for the US economy, the markets fell over, while the VIX, the measure of volatilty, went the other way. Are we really to believe that […]

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Failed German Bond Auction – not what it seems EXPANDED

Today Germany had a failed bond auction. The terms of its failure were simply that not enough people turned up and no one wanted to buy. The rate was customarily low its just no one came to the shop. Why? It was not that the buyers were asking for a higher rate of return to […]

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Hungary gets the plain speaking prize – again.

A very interesting article and great interview at Portfolio.hu today. What makes it of interest is that for once you have a politician talking out of their mouth instead of the usual other end. The Hungarian government is always described as ‘centre-right’. Forthright might be more accurate. Remember in the wake of the Greek bail-out, […]

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A book for you – The Debt Generation

I thought I’d let you know that a book based upon everything I’ve written starting with Bear Stearns and going up to the Greek fiasco is now finished. It is called The Debt Generation. All we have to do now is find an agent and a publisher. I say we because it has been edited […]

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What Ireland teaches us all

The future for a great many countries is already out there. One of the best places to see how it will be is Ireland. A few weeks ago the triumphant headline was ‘Ireland out of recession’. And the articles that went with the headline were full of ‘growth’ and ‘bounce’ and ‘exports’. They were all […]

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