Or massive IMF pool. Zero Hedge
What's wrong with poor old Belgium? Spreads widen. All else in.
Clear macro weaknesses. Martin Wolf
Ireland the rise & crash. NYRB (h/t nakedcapitalism)
Politics to kill Europe. Michael Pettis, Barry Eichengreen, Yves Smith
US bond bubble bust. MarketWatch
Financialisation of commodities. VOX
The fifth pillar. SMH
Australia's shitty growth. Tim Colebatch (h/t The Lorax)
SWF. Michael Stutchbury
Steel demand & prices down. IW
What kind of dill makes this prediction? Bloomberg
SWF. Michael Stutchbury
Steel demand & prices down. IW
What kind of dill makes this prediction? Bloomberg
1 comment:
Colebatch is good today:
http://www.theage.com.au/business/reserve-rises-may-have-missed-the-point-20101201-18gqy.html
Average income grew just 3.6 per cent for each employee. Inflation grew 4.1 per cent. That tells us that, on average, households that depend on wage income are now marginally worse off.
Household income has grown: but the part of it that really grew is income of households that invest. Our income from profits, dividends, rent and interest shot up 16 per cent in the same two years. So households with significant investment income are much better off.
But investor households are more likely to reinvest their windfalls than spend them. That's reflected in the bureau's stunning revision of its story about what happened in the past year.
It cut its estimate of household spending in 2009-10 by a cool $27 billion - and trebled its estimate of household saving from $23 billion to $68 billion.
It depicts Australia's growth as extremely patchy. In the past year, almost half of all non-farm growth was in mining, mineral processing and building. Most of the rest was in finance and professional services (lawyers, accountants etc). That third of the economy grew by 5.7 per cent. The other two-thirds of the economy grew by 0.8 per cent. It's that stark.
I wonder how investor income will hold up now the housing market has cracked?
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