Tuesday, March 19, 2013

Oddly Relevant Mar-19-2013


The better deal for Cyprus, by Lee Buchheit: also known as the godfather of sovereign debt restructure. Here’s the simple plan: (1) leave all deposits under 100k Euro untouched but convert them into bank CDs with laddered maturity and interest (2) term out everybody else by 5 / 10 years. It reduces the size of bailout, touches nobody’s principal, and gives the government good breathing room…Source: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2235359

Housing boom, but not construction jobs: Key to understanding the sluggish growth in construction jobs is a concept called “labor hoarding.”  That’s what happens during a recession when companies don’t fire as many workers as the decline in business would seem to have justified. Firms don’t want to lose all their quality workers and then be unable to keep up with demand when business finally turns around, so they keep people on staff even when there is not enough work to keep them fully busy. [Note: 50% wage is more money than 100% unemployment]…Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/19/housing-has-been-booming-construction-jobs-havent-heres-why/

5 reasons why immigration reform is moving forward: (1) The 2006-07 reform fall-out nonetheless built trust and cordiality, (2) Republicans have a political imperative (to keep Hispanic and Asian voters) to keep things moving; (3) Immigration reform largely stands apart from the fiscal fight that’s driven apart both parties; (4) powerful interest groups are trying to help the process along, and (5) there is a big grassroots movement in support of the issue…Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/19/five-reasons-why-immigration-reform-is-moving-forward/

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