Links: 2010-03-31 – PIKs and High Yield back with a passion

| 31 March 2010 07:50

Note: I now post these stories and other breaking news on my twitter feed. Follow me at twitter.com/edwardnh to receive updates in real-time.

  • Paul Volcker: Do The Right Economic Thing « The Baseline Scenario
  • FT.com / Columnists / Martin Wolf – Why Germany cannot be a model for the eurozone
  • FT.com – China invited to join IEA as oil demand shifts
  • FT.com – Irish banks face shortfall of 32bn
  • How I’d Hack Your Weak Passwords – Passwords – Lifehacker
  • Economist’s View: "Where on Earth has the SEC Been?"
  • Gene Healy: Demography determining GOP’s destiny | Washington Examiner
  • A US-china trade war can shake up markets-Interviews-Opinion-The Economic Times
  • Eurozone risks a break-up, says Dr Doom-International Business-News-The Economic Times
  • FT Alphaville – Stacy Marie Ishmael – The CDS inquisition, California edition
  • Subprime Debt Rallies as U.S. Enhances Loan Aid: Credit Markets – Bloomberg.com
  • Armed and Dangerous? PIK Toggles Are Back – Deal Journal – WSJ
  • Our unstoppable housing market may have met its match – Canada – National Post
  • Payback Time – States’ Debt Woes Grow Too Big to Camouflage – NYTimes.com
  • FT Alphaville – Izabella Kaminska – US 7-year swap spread turns negative
  • Was the Citi Bailout Really a Good Deal? : Ryan Chittum – CJR
  • China shows new divisions on yuan – National Post
  • Was die Eurokrise für den Franken bedeutet – Schweiz: Standard – tagesanzeiger.ch
  • Greek Bonds Under Renewed Pressure – MarketBeat – WSJ
  • FT.com – A frugal policy is the better solution
  • Economist’s View: Disinflation Continues…
  • FT.com – Will negative swap spreads be our coal mine canaries?
  • Flaxseed lowers high cholesterol in men, study suggests

    • 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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    4 Comments

    1. avatar Rob says:
      1 April 2010 at 17:44

      Ed, big fan, follow the blog daily, did you catch Tadashi Nakamae’s article in the FT in the Markets & Investing section on 3/31? Tremendous article that puts out your asset-based economy credit write-downs thesis, that he completely agrees with and puts into a Japanese perspective.

      • avatar Edward Harrison says:
        1 April 2010 at 18:44

        Rob, I just noticed his post from January 2008. How is that relevant? Perhaps you can give a link to the more recent post.

        • avatar Rob says:
          1 April 2010 at 19:35

          Sorry for the confusion.

          http://www.ft.com/cms/s/0/a5295546-3c0a-11df-9412-00144feabdc0.html

          • avatar Edward Harrison says:
            1 April 2010 at 19:47

            Yes, I just found Tadashi Nakamae’s piece. I was just discussing it on twitter. He makes good points. I especially like it when he says “Tadashi Nakamae says “demand-side fiscal and monetary policies have served only to delay the much-needed elimination of excess capacity.” That is exactly what I have said.

            But I have concerns that his ‘solution’ of firing people en masse as he suggests leads to a deflationary spiral. More likely, it is better to allow marginal firms to fail.

            You see General Growth Properties which filed for bankruptcy, rising from the dead, right? That’s what needs to be done with TBTF as well. However, the Irish are having the same dilemma with Anglo Irish Bank because it is TBTF. They are worried about credit growth. Putting AIB out of its misery means lights out for the Irish economy. So, the choices are hard.

            I am very much in favor of breaking the largest institutions up, recognizing the trading losses now marked to maturity and nationalizing the organizations that have a resultant shortfall. These companies would then be stripped of their bad assets and re-privatized.

            I won’t name names, but I’m sure you know which firms of the big six are likely to be nationalized.