Daily commentary: On free money for the German government

Not a lot to say today but I do have a lot of links. The stories today are all the same, which is why I don’t have a lot to add.

One story to note is that the German government is now borrowing 2-year money at zero percent. This tells you that the Germans continue to benefit from Europe while the periphery does not. The prevailing narrative as to why this is so is because the Germans are frugal and conservative and the peripherals are not. I don’t buy that narrative, at a minimum because i know the Germans have government debt of 82% of GDP. And there are many other reasons why this is a false narrative. But that’s how the situation is going to be sold. Given this storyline, it puts pressure on the Germans to share the wealth, meaning the Germans could be said to be ‘benefitting’ from low rates while others are ‘suffering’. Watch for this framing to take form as German rates remain low.

That’s it. Here are the links.

Cher arriving in Minneapolis, 1975 | Retronaut

A fragile Europe must change fast – FT.com

Germany to Borrow for Free at Two-Year Sale Amid Crisis – Bloomberg

Fitch cuts Japan as politics hinders debt plan | Reuters

India faces mass default and restructuring as devaluation looms | Reuters

America’s Best High Schools 2012 – The Daily Beast

Ray Dalio’s World – Barrons.com

German Chancellor Merkel Under Pressure at Home and Abroad – SPIEGEL ONLINE

Morgan Stanley cut Facebook estimates just before IPO | Reuters

American Express Uses Zynga’s Farmville To Lure New Prepaid Card Users | TechCrunch

Neuer Staatskredit: Die Bundesregierung will null Prozent Zinsen zahlen – Anleihen & Zinsen – FAZ

An Australian stock to buy as China slumps – MoneyWeek

La crisis provocará una generación perdida de jóvenes españoles – ABC.es

Japan’s credit rating cut by Fitch on debt fears – Telegraph

Midtown Penthouse at One57 Sells for New York Record – NYTimes.com

The Irresponsibility Of John Boehner | Stan Collender’s Capital Gains and Games

Europe is driving full-tilt, foot on the pedal, into a brick wall – Telegraph

New Trayvon Martin Documents : The New Yorker

Drachma scarecrows and the Myths of Greek Exit – Telegraph Blogs

EconoMonitor : Nouriel Roubini’s Global EconoMonitor » Bartiromo One on One with Nouriel Roubini: Trouble Ahead for Economy

FT Alphaville » The subpriming of commodities

Iron ore and coal hit by China deferrals – FT.com

Diplomats back EU ‘project bonds’ plan – FT.com

The only way to stop a eurozone bank run – FT.com

Secret €100bn aid props up Greek banks – FT.com

The Billion-Dollar Social Media Question – Rita McGrath – Harvard Business Review

Latest data raise red flags likely to burst China’s bubble: economist – The Globe and Mail

France to push for eurozone bonds – FT.com

Euro zone needs growth and austerity: ECB’s Asmussen | Reuters

Facebook shares sink 11 percent as reality overtakes hype | Reuters

Alexis Tsipras interview: ‘Greece is in danger of a humanitarian crisis’ | World news | guardian.co.uk

Europe poised for political showdown over eurobonds – Telegraph

IIF: Spain’s bank losses could hit €260bn – Telegraph

Houghton Mifflin files Chapter 11 bankruptcy | Reuters

BBC News – Germany restates opposition to eurobonds

Comcast Refuses To Believe I Didn’t Open An Account When I Was 16 At A House I Didn’t Live In – The Consumerist

Germany isolated as Latin Bloc calls the shots – Telegraph

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