Posts from Monday Oct 7 2013

The Closer


– How complex systems fail. Read more

Help to market-clear?

It’s “a reasonably sensible policy with some likelihood of success.”

What recent government initiative might Neville Hill and Steven Bryce, Credit Suisse UK economists, be referring to?

Why Help to Buy 2 of courseRead more

An elegant solution to a conspiracy problem

OK, hands up. We did not pay attention in March when Canadian securities regulators proposed to tighten rules for when investors must disclose their activities to the rest of the market.

The CSA is still considering, and the Globe and Mail reported on Monday that it’s not just activists who are wary. However, what has belatedly caught our notice are some excellent ideas from ISDA about derivatives disclosure, which could also be relevant south of the border. Read more

Pari passu, Supreme smackdown (sort of)

From the Orders of the Supreme Court on October 7:

This is a defeat for Argentina. Any legal setback is. But it’s also perhaps not the end of the prospect (however distant) of Justices Scalia, Ginsburg et al debating the pari passu saga. Read more

Good news: Britain to become more over-crowded

A chart, courtesy of James Knightley at ING…

 Read more

Markets Live: Monday, 7th October, 2013

Live markets commentary from 

The (early) Lunch Wrap

Good morning New York,


Light sweet saturation and a malinvestment *alert*

Take yourself back to the heady oil price days of early 2008. Imagine a rogue voice reassuring the market to “fear not, one day soon the US will be saturated in the black oozey stuff”.

What would the market have made of such a concept? Would such a voice have been dismissed as a loon? Very possibly.

And yet, less than six years later comes the following warning from Goldman Sachs: Read more

Further reading

Elsewhere on Monday,

– “I said they ought to pass out to all federal judges a stamp, and the stamp says—Whack! [Pounds his fist.]—STUPID BUT ­CONSTITUTIONAL. Whack! [Pounds again.]

Rogoff replies to Krugman and Wren-Lewis.

– What British austerity? Read more

The 6am London Cut

Markets: Asian shares, oil prices and the dollar came under pressure on Monday as politicians in Washington showed no signs of making progress to resolve the U.S. budget standoff, while safe-haven gold inched higher. (ReutersRead more