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Links 1-10-2011

January 10, 2011

The must read:

Edward.Hugh.Blog: Turkey’s Audacious Experiment In “Post Modern” Monetary Policy: But as Erdem Basci among others, including some IMF economists, argue, hiking interest rates could be totally counterproductive in the current climate since it might well serve to make the country even more attractive (by increasing that key yield differential) to precisely the kind of funds they want to deter. Turkey, as many analysts constantly point out, has become over-dependent on the wrong kind of funding to finance its current account deficit. What Turkey needs is to attract longer term investment finance, and while reducing the volume of short term speculative finance which is currently distorting prices in the country’s equity markets. This argues for lower, not higher, interest rates, since bringing the longer run cost of borrowing down should make the country more attractive to the kind of investor it needs.

  1. Guest Post: V for Vendetta – 2011 | zero hedge
  2. No Federal Preemption by a Trustee of a Mortgage Backed Security Trust from Senior Counsel of the Office of the Comptroller of the Currency | zero hedge
  3. Is Massive Primary Dealer Year-End Window Dressing A Key Reason For The Recent Bond Sell Off? | zero hedge
  4. Climate of Hate – NYTimes.com
  5. Reggie Middleton Boom Bust Blog – All Articles
  6. Monetary Freedom: DeLong on Investment-grade Financial Assets and Recession:
  7. Hussman Funds – Weekly Market Comment: “Illusory Prosperity” – Ludwig von Mises on Monetary Policy: “Every serious discussion of the problem of credit expansion must start from the distinction between two classes of credit: commodity credit and circulation credit. Commodity credit is the transfer of savings from the hands of the original saver into those of the entrepreneurs who plan to use these funds in production. The original saver has saved money by not consuming what he could have consumed by spending it for consumption. He transfers purchasing power to the debtor and thus enables the latter to buy these nonconsumed commodities for use in further production. Thus, the amount of commodity credit is strictly limited by the amount of saving, i.e. abstention from consumption. Additional credit can only be granted to the extent that additional savings have been accumulated. The whole process does not affect the purchasing power of the monetary unit.”  I ask why we have to borrow to get to full capacity utilization at any time.
  8. The truth about tax havens: part 2 | Business | The Guardian:
  9. The Bill Daley Problem « The Baseline Scenario
  10. The Center of the Universe » Blog Archive » The Influence of the Sub Prime Fiasco on the Last Business Cycle
  11. I Would Very Much Like an Alternative Explanation of This… – Grasping Reality with an X-11 Seasonal Adjustment Filter


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