The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."
Tuesday, November 27, 2012
(1) The price of bank safety and (2) Who will succeed RBA's Stevens and APRA's Laker?
Investors expect a trade-off between risk and return, but in Australian banking this relationship is inverted – banks with the lowest risks provide the highest returns. Taxpayer subsidies probably explain why.
The second is on the shock appointment of the Canadian central banking boss as Bank of England governor. You can read it here. I also discuss possible replacements for Glenn Stevens at the RBA and John Laker at APRA:
The two most obvious and apolitical successors to Stevens and Laker are, respectively, the RBA’s Dr Phillip Lowe and Dr Guy Debelle. Both have PhDs from MIT and are experts in monetary policy and financial stability. Dr Lowe is currently deputy governor and widely considered a natural replacement to Stevens. Dr Debelle runs the RBA’s financial markets division and led the central bank’s efforts to keep banks solvent during the global credit crisis.