Links: 6/16/09

Moody’s bank downgrades, pain in Spain edition – FT Alphaville. 25 banks get downgrades. Santander gets negative watch. Was I too early on Santander or just plain wrong?

Lincoln National to Take Federal Bailout Funds DealBook. Is this getting any press? They are not a bank.

Marijuana Damages DNA And May Cause Cancer, New Test Reveals Science Daily

Banks face fresh $283bn writedowns FT

Extended Stay Hotels Seeks Chapter 11 WSJ. I tweeted this when the news came out. Here is the link to the story.

Hotel Creditors May Have an Extended Stay WSJ

The Good Soldier: Hillary Clinton As Secretary of State Daily Intel — New York Magazine. Good analysis of Hillary Clinton’s excellent performance to date.

Test awaits Obama this week on financial reforms Reuters

You Don’t Get a Vote! – James Kwak

Home Builders See a Bottom Housing Wire

Is This Bull Cyclical or Secular? WSJ. Of course, I think it is a cyclical bull aka bear market rally.

Six Flags: setting the record straight on bankruptcy Credit Writedowns

A conversation with Richard Posner on Charlie Rose Credit Writedowns

Antidote du Jour (hat tip Paul):


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About Edward Harrison

I am a banking and finance specialist at the economic consultancy Global Macro Advisors. Previously, I worked at Deutsche Bank, Bain, the Corporate Executive Board and Yahoo. I have a BA in Economics from Dartmouth College and an MBA in Finance from Columbia University. As to ideology, I would call myself a libertarian realist - believer in the primacy of markets over a statist approach. However, I am no ideologue who believes that markets can solve all problems. Having lived in a lot of different places, I tend to take a global approach to economics and politics. I started my career as a diplomat in the foreign service and speak German, Dutch, Swedish, Spanish and French as well as English and can read a number of other European languages. I enjoy a good debate on these issues and I hope you enjoy my blogs. Please do sign up for the Email and RSS feeds on my blog pages. Cheers. Edward


  1. plschwarz

    The paper on cannibus damage to DNA involves the chemical acettalderhyde
    "Acetaldehyde (systematically: ethanal) is an organic chemical compound with the formula CH3CHO or MeCHO. It is a flammable liquid. Acetaldehyde occurs naturally in ripe fruit, coffee, and bread, and is produced by plants as part of their normal metabolism. It is popularly known as a chemical that causes hangovers….
    Acetaldehyde is an air pollutant resulting from combustion, such as automotive exhaust and tobacco smoke." Wikipedia.

    The Science Digest article is half-truth propaganda. It suggests that this is a danger limited to Tobacco and marijuiana. When in fact any organic combustion including I suppose campfire marshmallows give off acetalderhyde

  2. Diego


    it seems you were just plain wrong. Let's look at what happened in the last 15 months since you wrote that piece: the Lehman Bros' financial meltdown; most US and UK big banks were nationalised or heavily intervened by the respective governments; significant banks have failed and needed rescue in almost every European nation; and the world is in a deep recession.

    Yet Spain is the Western European country with the best y-o-y (negative) growth; its banking system is intact, with most big banks having posted no quarterly loss; no significant bank has been nationalised nor rescued; and Santander, which has used the crisis to buy bankrupt banks in the US and the UK at firesale prices, is making a similar profit as in the good years.

    Your comments (mostly insightful and well-informed) have both an anti-Spanish and anti-European bias, I'd say. Why so? Can't you read the signs of the times?

  3. Edward Harrison


    No anti-Spanish bias any more than anti-US, Irish or British bias (these are the original 4 housing bubble markets). But, I agree, it looks like I was wrong on Santander.


  4. Edward Harrison

    One more thing Diego,

    I have realized the Santander call was off for some time. Here's my mea culpa:

    My best call here was in predicting that many more writedowns to come and that the financial sector and its credit writedowns would be at the center of this downturn. My favorite call was on HBOS and its exposure to loan losses. My worst call was on Santander, which I thought was going to take down a lot of writedowns. I got that 100% wrong



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