Links: 2009-06-30

Moodys is downgrading Spanish savings banks. There is still significant weakness in the financial sector in Spain. The Spanish desperately want a housing market bottoming like the one which could be developing in the UK.

The year-on-year numbers are still truly awful. But, as with the rest of Asia, the month-on-month numbers are amazing.

I also think the Baltics (and not Latvia here) are going to have to find another way out. The currency peg is killing these countries.

The tragic story of a Dutch banker mixed up in the RBS debacle.

This post makes it crystal clear that GQ was wrong in quoting Taleb, but that the refuse to retract the erroneous statement. These e-mails regarding the story are clear evidence that GQ got it wrong. It also points out why generalist reporters do get it wrong. Concepts like “Mean variants” “mean-variance”.

"The world’s airlines lost more than $3 billion in the first quarter of 2009, the International Air Transport Association (IATA) said on Tuesday, maintaining its estimate for full-year losses of $9 billion."

"It said this was the third rise in the past four months, and shrank the annual rate of decline to just 9.3%, from 11.3% in May."

These are not annualized figures like in the U.S. "The UK economy contracted 2.4% in the first quarter of 2009, its biggest quarterly decline in 51 years, according to the latest official data."

"The eurozone’s annual rate of inflation turned negative in June for the first time since the single currency was introduced in 1999."

This is as much a move against the U.S. tax regime as it is one in favour of Canada

"Shares in Daiwa Securities and Mizuho Financial Group fell on Monday amid investor concerns over the dilutive effect of new share issues planned by the two financial groups."

I couldn’t help but think ‘Sympathy for the Devil’ when I saw the post title. Freudian? Who knows. Good post on the Fed interest rate dilemma in 2001-2003.

"Justice Anthony Kennedy wrote for the majority. The justices divided along ideological lines. Chief Justice John Roberts and Justices Antonin Scalia, Samuel Alito and Clarence Thomas joined Kennedy’s opinion…In dissent, Justice Ruth Bader Ginsburg said the suing firefighters, while meriting the court’s “sympathy,” had no “vested right to promotion.”"

His lawyers had asked for 12 years.

The Fed must reassure markets on inflation – Martin Feldstein, FT

"The simplest explanation for the higher 10-year rate is that many investors now expect inflation to rise. Although economic weakness and excess capacity are keeping current inflation low, the explosive rise of bank reserves created by Fed policy provides fuel for future inflation. The prospective decline of the dollar is also a potential source of inflation. Comparing the interest rates on 10-year Treasuries with the interest rates for 10-year Treasury inflation protected securities (Tips) supports this inflation explanation for the rise in long-term nominal rates."

Distraction of the day: Is the iPhone waterproof? (hat tip Mashable)