Random Notes 3 June 2011

  1. Buce has been on fire recently, so I’ll probably have to do a post about why this post is so off-target, though his conclusion is correct (short version: he’s been misled).
  2. If I’m reading this morning’s SIFMA Brief correctly, Moody’s—whose rating skills Robert has discussed at length—(1) may downgrade US debt if we spend too much and (2) will downgrade US banks unless we spend too much on them. Oh, and the banks object to regulation because it would “artificially” reduce asset values (presumably, many of the same ones Moody’s wants protected).
  3. Relatedly, James Salt (probably h/t Felix) notes that “generous” UK banks are playing reporting games. (The US version is to deny the rework and leave the asset marked at unsustainable levels.)
  4. That this is spot-on would make me sadder if I thought we still lived in anything resembling a meritocracy, or even a developing economy.
  5. If we needed further evidence of that, the state with the best secondary eduction system in the country is pushing forward with privatize-the-gains.
  6. I’m more and more convinced that China “is different,” but very much not certain the differences will make an ultimate difference. Daniel Gross is inclined to think not. More on this as I finally finish my review of BoomBustOlogy, which you should expect to see some time before the apocalypse.
  7. I assume everyone has already seen this. Just in case, check out the facts, stylised or not.
  8. Oh, and Felix is wrong here. But that’s a post that will probably never be written by me. Someone else want to send it in?