Daily Reading – Friday, July 1, 2011
The Big Picture: First, Blame the Lenders
I’ve noticed something intriguing about the debate regarding the Greek default/restructuring/bailout: There is a familiar odor to the “Blame the profligate Greeks” meme now circulating. It is little more than a brilliant marketing ploy. This distraction ignores the simple reality that lending to insolvent people, institutions and countries is first and foremost the fault of the lenders.
The Big Picture: Not the Greeks, But Their Creditors Get Bailed Out
Whenever you hear a Bailout being discussed, look to see who it is that is actually being bailed out. It is not the Greek people or even the Greek government — rather, it is the creditors of Greece. These are the banks mostly in Europe, primarily in Germany and France, but also includes Japan, China and the US.
FT Alphaville: And so farewell, QE2
The last QE2 open market operation: $12.47bn of Treasuries tendered by primary dealers, $4.91bn accepted by the Fed, $4.4bn of which was yesterday’s new seven-year bond.
FT Alphaville: Back inside the horrors of the Gaddafi fund
Instead it really is the LIA’s losses on investments in alternatives and derivative assets, including the gigantic fees it paid out for the privilege, that stick out once again.
FT Alphaville: Does prejudice hinder economic growth?
For UBS economist Paul Donovan it’s not even a question, really
Macro Man: YOU WHAT?
Its like working in a nightclub.
“RISK ON”!
– YER WHAT?
I SAID ITS “RISK ON”!!
-WHAT?? I CANT HEAR YOU
I SAID “RISK IS ON, IT ROCKS”!!
– WHISKY ON ROCKS? YES PLEASE MAKE MINE A DOUBLE!!
NONONO – OH FORGET IT
Calculated Risk: CoreLogic: May Home Price Index increased 0.8%
According to the CoreLogic HPI, national home prices, including distressed sales, increased by 0.8 percent in May 2011 compared to April 2011, the second consecutive month-over-month increase.