Lunchtime Links 7-2
(Send links, pics, vids to rolfe.winkler at thomsonreuters.com)
Michael Lewis on the villain behind the fall of AIG (Vanity Fair) From a reliable source: Lewis “begins to show how AIG interacted with everything else. And shows how without the government bailout of AIG CDS positions, poof!: the system would have collapsed. Pass this on to those who argue that the CDS market turned out to work fine.”
U.S. Job Losses Spike (Reuters) No one sees green shoots in today’s employment report. 467k job losses are a terrible number. The economy clearly isn’t out of the doldrums. It never was. Unfortunately, many will use the argument to argue for more stimulus, fiscal and monetary. The trouble with those prescriptions is that, in the long-run, they’ll create MORE unemployment by burying the U.S. under an even larger pile of unpayable debt.
Taleb: “We’re in the middle of a crash” (CNBC) There’s no easy way out of the financial crisis, argues the Black Swan. “The government needs to deleverage debt and not try stimulus packages that will inflate assets. The monkey on our back is debt.”
Manhattan condo/co-op prices plunge (CNN Money)
It’s not just California (BBC) “According to the Center for Budget and Policy Priorities (CBPP), a Washington think tank, 48 of the 50 states are facing budget deficits this year, with a total deficit of $166bn, or 24% of their budgets.” CA’s budget deficit of $26 billion is a big chunk of the total.
Hawaii Senator Arranges Bailout Money for Bank in which he (probably) holds stock (ProPublica) Inouye has delayed filing his 2008 financial report; probably because it will show he held stock in this particular bank.
Greatest Headline Ever? (Telegraph)
The Repo market, “demystified with stick figures”….