News from around the web: 2009-08-16

| 16 August 2009 23:07
  • Clive Crook – Obama took wrong turn on health
  • Housing affordability at the highest level since 1996 – Telegraph

    This article uses the term ‘undervalued.’ You have to sceptical about that kind of terminology given how expensive housing still is in places like London.

  • Exports, stimulus lift Japan out of recession | Reuters

    Add Japan to the list of countries with ‘statistical’ recoveries. Of course, in nominal terms, the economy still shrank.

  • Financial Standard – Danger signs ahead but bargain stocks a-plenty: Faber
  • Bespoke Investment Group: S&P 500 P/E Ratio Nearly Doubles
  • Why the New American Real Estate Dream Is Renting – WSJ.com
  • Cocaine Contaminates Majority of U.S. Currency: Scientific American

    I have to say, I view this claim with scepticism. But, it’s interesting.

  • Why We Need Health Care Reform – Barack Obama, NYTimes.com

    The President is making Op-Ed contributions in the NY Times? I guarantee there will be huge press coverage of this.

  • Economist’s View: "A Public Option Isn’t a Curse or a Cure"

    Thaler shows that government usually loses in competition with private industry.

  • Nine Notes on Residential Real Estate – David Merkel
  • Cue the Tape From 1938 – Barrons.com

    Another buyer beware article. Good info on Paul Tudor Jones and the documentary film that vanished from YouTube because of copyright.

  • Iceland: what ugly secrets are waiting to be exposed in the meltdown? – Telegraph
  • There’s no quick fix to the global economy’s excess capacity – Telegraph
  • They Shopped ‘Til They Dropped – Barrons.com

    Retail is another place to avoid in Q4. They will underperform as consumption is the weak link.

  • Quality Counts – Barrons.com

    This has been a junk rally. Going forward, junk will sell off, quality will outperform.

  • New Google is the old Microsoft – TechFlash
  • Home Nurse Visits: A New Health-Care Fear for Conservatives – TIME

    More fear-mongering in public policy debates. Pathetic. This is straight out of Lee Atwater’s playbook. Despicable because people can be manipulated, but shrewd AND effective.

    • avatar About Edward Harrison

    Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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    1 Comment

    1. avatar aitrader says:
      17 August 2009 at 06:14

      Swedbank in Sweden is trying to raise 15 billion SEK via new stock issuance.

      http://www.cnbc.com/id/32443491

      Swedbank, naturally, claims that this has nothing to do with the toxic loans from the Baltic states on their books. (Yeah, right…)

      Who in their right mind would massively dilute their stock via a new emission in this market? My bet is they find few takers at any price.

      The Swedish government has already told SE Bank and Swedbank that they need to cover 16 billion SEK in losses on their own. The government has promised to cover an additional 16 billion SEK above this amount and has also asked for a 100 billion SEK credit line from the IMF in anticipation of problems in the Swedish banking sector.

      My read on the Swedbank stock issuance is that they do not have the reserves to cover the initial 16 billion SEK in loan losses and are trying to raise it via the Swedish stock market. I predict it will go belly up sometime in early Fall 2009.