Weekend Reading – Stuff we found interesting this week

July 23rd 2011.

Welcome to our weekly roundup of the stuff we read that was interesting to us and hopefully to you.

Here is a few interesting articles on the “Eurozone Solution” if you are having trouble getting your arms around it

The European summit on Thursday has resulted in a belated, but still impressive, step towards a resolution of the sovereign debt crisis. The measures were clearly more significant than the markets expected, but at the same time they have fallen short of a once-and-for-all resolution of Europe’s debt problem. Several key compromises have been made, notably between the German government and the European Central  Bank, and these have removed some previously immovable obstacles to progress.

The institutional plumbing is therefore now in place to resolve the crisis completely. But this still leaves one crucial question: how much money will be sent down the pipes?

Michael Burry Speaks – 25 minute documentary of one of the main characters in in Michael Lewis’ book “The Big Short”. Michaels investors made about a billion dollars in the US sub-prime meltdown. Michael has Aspergers Syndrome.

Water Water everywhere – at least on the NSW coast at the moment but it was only a couple of years ago that Australia was in the grip of a horrendous drought. Our dams are full but as I watched the drought on the Horn Of Africa unfold in the recent weeks and months I’ve been touching wood. Here is an article by Willem Buiter in FTAlphaville which points to what Australians and Africans know better than most – Water is more important than oil.

On this topic though – the Australian has a story today saying this is the worst winter rain in sixty years. As a behavioural economist this is important because as the Australian says

THE Gillard government could not have picked a worse month to sell its carbon tax to Sydney voters, who are enduring the city’s wettest July in 61 years as global warming becomes the butt of jokes.

In a not unentirely related vane here is an article from the “Peak oil” site suggesting Israel is getting ready to bomb Iran. This we don’t need.

And, after the rally on markerts this week I’ve left in the article from last week on where we reamin mindful and aware that we and clients have risks when the sun shines again. Here is an interesting article worth reading on “upside risk”.

Trading is a hard game. It’s the best fun you can have and still call it a job, perhaps except for Pro Surfing, but if you don’t do it right it is terrible. Here are 11 things a trader is – in these volatile times where investors are more and more taking on trading style approaches worth remembering.

Late Inclusion – Robert Shiller is my Favourite global economist. In this piece he talks about Debt and Delusion.

And of course the FT’s week in review

Have a great weekend

Greg McKenna

greg@lighthousesecurities.com.au

www.twitter.com/gregorymckenna

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