April 2nd, 2013
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list reveals just how extractive the Cyprus rescue was ........ and the last article says the euro is equivalent to a gold standard without the gold.
- Pop Quiz: How Big Is the Bailout Of Cyprus? (Antonis Polemitus, Ledra Capital) Hat tip to Naked Capitalism. The Cyprus "bail-out" was actually a "bail-in" (term Econintersect first saw used by Edward Harrison of Credit Wrtitedowns). Final bottom line was an extraction from Cyprus of several billion dollars rather than a provision of any money to the nation. On a percapita or proportinal scale against GDP, the U.S. would have experienced an extraction somewhere between $4 trillion and $8 trillion depending on which numbers provided by Antonis Polemitus are used.
- Washington law firm sues bank regulator over foreclosure reviews (Aruna Viswanatha and Emily Stephenson, Thompson Reuters) Hat tip to Naked Capitalism.
- Watergate’s Lessons, Washed Away (Michael Winship, What Matters Today - Bill Moyers) Government is less accountable than ever.
- Argentina’s desperate exchange proposal (Felix Salmon, Reuters) Econintersect is reminded of Michael Hudson's statement: "Debts that can't be repaid won't be repaid."
- The Five Ways Deflation Has Already Taken Hold (A. Gary Shilling, Bloomberg) This part 5 of a five part series. Links to other four parts are available at end of article.
- DAVID STOCKMAN: We've Been Lied To, Robbed, And Misled (Adam Taggart, Peak Propserity) Paul Krugman disagrees. See next article. More important see Warren Mosler's detailed discussion.
- KRUGMAN: David Stockman Is Just A Cranky Old Man (Joe Weisenthal, Business Insider) If Joe Weisenthal has captured all that Krugman has to say in this "debate", the professor is disappointingly brief and dismissive. See previous article.
- Say It With Me: Correlation ≠ Causation (Invictus, The Big Picture) Huge smackdown of two big names who violated some very basic rules of research, not the least of which was to test alternative hypotheses for what they observe to compare to the one they propose to be fact. And this is the way we are supposed to make informed economic decisions?
- Why the Euro Is Doomed in 4 Steps (Matthew O'Brien, The Atlantic) "It's the gold standard minus the shiny rocks."