I am altering my news round-up a bit here in that we have shifted the bulk of the news stories over to the news feed, which gets updated continuously. So, I will use the round-up to highlight a few top stories.
The majority of today’s stories come from the British press including unsubstantiated rumors that British politicians are considering the Euro more closely. After we see what happens with Spain and Ireland, who have already joined and have had serious bubbles, let’s talk. But for now, this story seems highly speculative.
Roger Bootle has a good piece in the Telegraph asking how we got into this mess and he has some good answers as well. Meanwhile AmbroseEvans-Pritchard is up to his usual downbeat global assessment, this time focusing n serious geopolitical risk — well worth a read.
One other story deserves note. It’s the property bust in Dubai. I have been following is development now for a few weeks. But, it seems like Dubai’s property bubble is blowing up and it should help explain the lack of eagerness on the part of Middle Eastern Sovereign Wealth Funds to invest in Western assets. The Middle East is a place to wach because they have not spent their oil wealth wisey. With prices down, it’s anybody’s guess as to how this story develops.
UK ‘closer’ to adopting the euro – BBC News
German complacency poses a serious threat – Wolfgang Munchau, FT
World stability hangs by a thread as economies continue to unravel – Ambrose Evans-Pritchard, Telegraph
How on earth did we get into this mess? – Roger Bootle, Telegraph
The Coming Great Depression: Leaving Fantasyland – Charles Hugh Smith (A sobering look at why things look better than they may become – Hat tip Michael Panzner)
Even central bankers should be held accountable: they play with public money after all – Mavercon (More reason the Bloomberg suit matters)