Saturday, August 21, 2010
Thursday, August 19, 2010
De Spiegel discusses work by Wolfgang Menzel that suggests that an absence of copy right in Germany was responsible for a flourishing of ideas. In contrast to England, where copyright laws kept monopoly power over ideas and prevented competition, in Germany there was an outpouring of non-fiction publishing. German publishers reacted to their inability to enforce their rights by using price discrimination to cover the market.
In Germany during the same period, publishers had plagiarizers -- who could reprint each new publication and sell it cheaply without fear of punishment -- breathing down their necks. Successful publishers were the ones who took a sophisticated approach in reaction to these copycats and devised a form of publication still common today, issuing fancy editions for their wealthy customers and low-priced paperbacks for the masses.
Monday, August 16, 2010
Some interesting comments on the state of the money market in Europe. It appears that things remain very tight and that collateral is increasingly demanded.
What Comotto emphasises, however, is that while that trend may have begun as far back as the 1990s, the recent European crisis has now nearly completely vaporised what little unsecured interbank lending was left in the market. What’s more, the demand for tri-party transactions — where collateral is managed by a custodian rather than bilaterally — has almost doubled from less than 25 per cent before the Lehman crisis to almost 50 per cent since.
This is from Richard Comotto of the European repo market, quoted in the FT's Alphaville. There is a lot more interesting information on the repo and money markets. //