Japanese Housing Prices; Fannie Mae; South China Sea Tension Eases, For Now

March 25, 2012

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#social unrest: Change = D x V x 1st < cost

Michael Beer at Harvard developed this formula, which states that for change to happen, one needs to have D (high dissatisfaction with the current situation or condition) as well as V (a vision of how things might be better in the future) and 1st(the first steps to move one from dissatisfaction to that vision of the future). And, the cost (emotional, energy, financial, etc.) of doing this must be perceived as being less than the cost of staying as is.

US:

“We may not be able to get enlightened government policies until things get worse than they are now, which isn’t a happy thought” – NYU Professor Sylla

“A Bailout by Another:” Barney Frank, other members of congress turns up pressure on Fannie and Freddie for write downs at taxpayer expense. NY Times

World:

Over / Under Valued Global Housing prices: Economist Magazine

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Japan’s fiscal year ends March 31. Below is the seasonal movement for the bond market – Bank of America

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Italian labor minister fears death, the fate met by two former labor ministers who tried to pass labor reforms. Guardian

Riksbank’s Svensson: Fed On ‘Leading Edge’ Of Monetary Policy Best Practices. ForexLive

Sweden has a housing bubble; a central bank that greatly admires Federal Reserve policy; and Sweden is a heavily a socialist country whose welfare benefits are deemed birth rights – a surefire prescription for printing . Pulling up those Swedish Krona/IR charts now…

Sweden, the Socialist Mecca valuewalk

Eurozone debt crisis: how Greece could exit the euro – Telegraph

“Despite massive amounts of aid, poor countries tend to stay poor.” WSJ (should have read, because of massive aid, as it enables kleptocratic governments to stay in power)

China:

China becoming cooperative in the South Sea ForeignAffairs

FX reserves as a percent of China’s GDP and it’s import coverage ratios have been trending downward for the past three years. – CSFB

Debating a “Hard Landing” – prchovanec

 

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