Friday, June 15, 2012

15/6/2012: Few links worth checking out

Few worthy links accumulated over recent weeks:

What about that jobs creation by MNCs? Well, actually, its a net jobs loss: link here. Note that the net rate of jobs destruction amongst MNCs in the 2008-2011 period is roughly-speaking around 8-9%. Which is below that for the whole economy, but looks to be above that for the economy less construction and retail sectors. Hmmm...

EU Commission issued its guidelines for dealing with 'future' banking crises (assuming we end this one with some banking left for the future crises to challenge): link here.

Quick quote from Lobard Street Research on subordination in the Spanish 'rescue' case - the topic I covered for ages and that I believe is now also related to the ECB reluctance in engaging with secondary markets purchases of peripheral sovereign debt - link here.

Meanwhile, Spanish banks have now surpassed Italian bank in ECB borrowing: here.

Excellent as ever NamaWineLake blog on 18% performing loans ratio at NAMA: here. Stay tuned for my Sunday Times column this weekend where I cover European data on commercial real estate mortgages backed securities that will make Nama look, relatively, not that bad...

BIS blog post on their Q2 2012 quarterly: here. Some nice charts on international debt issuance, showing pick up in debt issuance in the wake of LTROs.

A position paper by Daniel Gros and Dirk Schoenmaker on Spain and Greece backstops: here. With some elements of the solutions that I've been advocating in my Sunday Times articles over the last few weeks - including deposits insurance. I disagree with them on the point that ESM should be used to recapitalize insolvent banks which are to be held in SPVs, presumably until they are 'repaired' to be fit for disposal. This is simply a prescription for de fact protectionism and politically motivated preservation of incumbents. In the end it will lead to European banking becoming fully politicised and ineffective. ESM can be used to cover losses in the banks, but insolvent banks should be shit down and their assets sold off to private investors and other banks to make certain that state-ESM-controlled zombies do not block the banking system.

A thought-provoking presentation on the state of the global economy by Raoul Pal: here.

Post a Comment