Links 11/18/08

Colossus of Rhodes to be rebuilt as giant light sculpture Guardian

Woolly rhino’s ancient migration BBC

Top judge: US and UK acted as ‘vigilantes’ in Iraq invasion Guardian

Web Sites That Dig for News Rise as Community Watchdogs New York Times

Volcker issues dire warning on slump Telegraph

Rents forced down by glut of homes Independent

Less to Pandit’s cost cutting than meets the eye Breaking Views

In a weird world, yields on Tips point to deflation John Dizard, Financial Times. Dizard argues TIPS are a screaming buy, depressed due to relative illiquiidty, and that their pricing makes sense only if you believe we will have three years of pretty pronounced deflation.

Addicted to Stimulus One Salient Oversight

China’s oil demand falls sharply amid global crisis: top producer AFP (hat tip reader Michael)

“Industrial Production Screams Recession” Economist’s View

S&P 500 May Fall More as `Retest’ of Low Fails to Spark Rally Bloomberg

Bretton Woods, a failure timeline Econospeak. Provides a short history of currency liberalization.

Antidote du jour (hat tip reader Diotima):

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  1. River

    Re: Volker Issues Dire Warning On Slump…

    A couple of out takes from Mr Volker’s talk:

    ‘”What this crisis reveals is a broken financial system like no other in my lifetime,” he told a conference at Lombard Street Research in London.’

    ‘”Normal monetary policy is not able to get money flowing. The trouble is that, even with all this [government] protection, the market is not moving again.’

    ‘I don’t think anybody thinks we’re going to get through this recession in a hurry.’

    Mr Volker must not be watching the talking heads on Squeek Blab each morning?

    Paul, in what might go down as the understatement of 2008, also said…

    ‘There has been leveraging in the economy beyond imagination, and nobody was saying we need to do something,” he said. “There are cycles in human nature and it is up to regulators to moderate these excesses. Alan was not a big regulator.”

    Alan was not a ‘big regulator’??? I call BMU on that one…Big Mogambo Understatement!

  2. Megan

    Re: Volcker Issues Dire Warning On Slump

    I am concerned about these public statements — do they indicate Volcker no longer has as strong an influence on the P-E?

  3. mft

    It sounds like Volcker is not sure government can control the situation much longer.

    Here is a new addition to the select club of those who think the really really really bad news may eventually come out of China. Denis Snower is the head of the Institute for World Economics in Kiel, Germany, one of the top German economic institutes. I quote from the report in Eurointelligence:

    Denis Snower, writing in FT Deutschland, does some math on Chinese growth. Investments account for a massive 45% of growth. In the view of the global downturn, China would suffer from an investment overhang that might lead to a 50% drop in investments, some 22% of GPD. Even the 16% of GDP stimulus is not going to be sufficient to bridget that gap. The result is a much deeper than expected economic crisis – which might be the next shock the world economy has to confront.”

  4. Peripheral Visionary

    Yves, loved the antidote. The former Goldman Sachs executive is keeping a sharp eye on the financial markets . . .

  5. cent21

    That is the most elite chicken coop I’ve ever seen, and I’ve seen some pretty elite chicken coops.

    Who built it? Can I hire them?

  6. Anonymous

    "the total (pay and benefits for GM autoworkers comes) to $41 an hour. That's decent pay, but still a long way from $70 an hour." That's about the same as that of Toyota's employees.

    I find it interesting that an awful lot of Americans are incensed that some fellow Americans still make decent wages. I am no friend of Detroit's big three, and I hate bailouts, but here are two reasons we should not penalize workers and retirees:

    (1) The health care system in the US is screwed up. It is no fault of the average worker that it costs 1K a month to subsidize a malfunctioning health care industry.
    (2) The companies should have been forced to fund (that is, put money aside for) the retiree liabilities when they occurred and not leave them as legacy costs. The administrations of the last 25 years are responsible for this outrage that is unacceptable in a civilized country!

  7. doc holiday w/ Tears of Joy

    I agree that this is a metaphor related to financial regulation. There are barriers that need to be in place, because there are that hunt for victims and abuse relationships. The nature of a predator is to hunt and take advantage of opportunity, but if the predators become wild and crazy to the point of being rabid, society has to group together to keep the mad wolves at bay and protect the chicks who may be preyed upon..


    See, hear & feel a great song for The Church Of Financial Redemptions and Social Justice

    Sheryl Crow Hallelujah

  8. Anonymous

    Fred, thanks for the link to squeek blab discussing the PPT. Interesting, to say the least. The talking heads did not want to admit that the PPT even exists!

    This sort of MSM non coverage is why I do not watch the talking heads. They immediately labled their guest as ‘promoting a conspiracy’…and shouted down any attempt at explanation.

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