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MacroBusiness was formed by four bloggers who reckon the gap between the Australian business media and reality has widened to a gulf. At MacroBusiness they use reason, history and ideas to bring you a bigger picture of the choices we face for our economy, businesses and investments.

Political Economy

The ECB is on Mars

Macro Business Apr 26, 2012

Collapsing credit demand ultimately leads to a loss of banking capital, which is the exact opposite of what the LTRO program was set up to achieve. Interestingly, as the charts below show, banks seem to think that there will be a slowing of…

Economy

More on the rain in Spain (and the need for bank capital to cover ECB loans)

Macro Business Mar 28, 2012

Back in November last year I posted on my confusion over the jubilation shown by the citizens of Spain as they elected Mariano Rajoy as their new political leader. Mr Rajoy’s strategy during the election campaign was to say very little…