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
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
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
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