Krugman: “I’m more right than conventional wisdom” ~ of Karl Marx, maybe
U.S. State Budget Surpluses Rising as Economy Lifts Tax Revenue~ Bloomberg – This cycle, states have been helped by balanced budget amendments and the Fed’s suppression of interest rates – the latter forces people to reach for yield.
Frack First, Disclose Chemicals Later Under U.S. Rule~ Bloomberg -a BP-like crisis is a minor tail risk. Japan still has not turned on its nuclear reactors
Sarkozy boasts of extracting serious concessions from Merkel ~ Bloomberg. It could be constructive to observe Hollande and Merkel’s body language when they meet to see who is dominant – see Bo Xilai article.
Hollande ‘Pragmatic’ on Fiscal Pact, willing to deal with Merkel ~ Bloomberg – game theorist Bruce Beueno de Mesquita believes leaders in democracies cannot move too far. A bloomberg guest also wondered whether a socialist could get a through labor and benefits reforms that a Sarkozy could not, like Germany did a decade or two ago.
France Faces 40% House Price Slump, says Pierre Sabatier of PrimeView. ~ UK Telegraph - Yet another
After slicing rates 350bps since August, Brazil Said to Limit Returns on Savings Accounts to 70% of Selic, hints at further cuts ~Bloomberg – Another government adopts financial repression and enters the competitivedevaluation game.
Four European elections, outside of Germany, this weekend will serve as a referendum on Merkel ~ Bloomberg
Sun Hung Kai Properties Suspends Trading of Hong Kong Shares pending price sensitive announcement Bloomberg ~ the centripetal force trending to the eye of the storm. I looked at this one as a short, but had enough exposure via the miners and metals. Frauds follow bubbles.
Two companies hold 40 to 49 percent of London copper stocks bloomberg – you have tail risks on both the long and short side of copper, short squeeze amid a rise or forced selling from the hoarding and financing schemes that is propping up prices.
Almost 500 Chinese shipyards out of a total of more than 1,600 may close because of falling orders and decreasing loans between the hedges
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