Rolfe Winkler

Microsoft to step up Google battle (FT)  Interesting.  What kind of computing power will MSFT be willing to support off the desktop?  And how much will that undercut its traditional biz model?  I wonder why MSFT even feels pressure from Google to do cloud computing.  The spreadsheet and word processing software that Google offers for free over the internet is quite terrible.  It’s slow, kluge, and has a fraction of the capability of MSFT’s Office software.

To control bubbles, the fed must control itself (David Merkel)  “The present Fed holding action inflates assets not goods.  By offering financing to asset markets that are in disarray, it supports asset prices.  For now, none of that balance sheet expansion leaks out to the general public, and thus, little goods inflation.  But also, little true stimulus….the Fed should limit its powers to reliquify the economy, because sloppy efforts in the past 25 years produced the popped bubbles that we are now dealing with.  Better to leave policy tight longer, and not loosen so much in troubles.  Don’t worry, we might have to wait longer for recovery, but the recoveries will be sounder when they come.”

Why negative nominal interest rates miss the point (Scott Fullwiller, ht Yves)  A great take-down of Mankiw’s idea to tax people for holding currency.

Bank of America said to balk at paying backstop fee (Bloomberg)  “Bank of America, ranked first by assets and deposits in the U.S., ‘got a moral commitment for insurance without tendering a check, so it appears they got something for nothing,’ said Representative Brad Sherman, a California Democrat on the House Financial Services Committee. ‘If the government takes the risk, the government needs to be paid.’” A great point Rep. Sherman!

How to win friends and influence people (Baseline Scenario, ht CB)  Advice from James Kwak on how to build cred in the blogosphere.

Bloods street gang targets N.J. banks in high-tech $654k check scam (NJ.com, ht Rej)

China’s detention of executives rattles investors (NYT)  The high cost of doing business in China.

Unreliable Range Rover covered in warnings and dumped outside dealer (Telegraph)

Daniel Radcliffe aces interview with terrifed 11 year-old reporter (NY Mag)