Lunchtime Links 8-10
Spitzer vs. Blodget: The interview (Tech Ticker) There are six videos. See the bottom of this post for links to the other five.
Krugman’s “mission accomplished” moment (NYT) I’ve take some liberties titling this link. In the column, PK takes a bit of a victory lap, claiming we averted a Second Great Depression thanks to fiscal and monetary stimulus. Once again, no discussion about the long-run negative consequences of not dealing with debt. Thanks to these policies, we’ve put ourselves squarely on the Japanese path: a couple decades of stagnation, financed with stimulus and money printing, that may very well end more violently than if we’d just dealt with the problem late last year.
Deficit grew $181 billion in July (The Hill) Krugman’s entire argument is based on the assumption of receptive bond markets. Great, they’re still receptive. And they may be for some time. But is that a good thing? Aren’t we just turning ourselves into California?
Banks make $38 billion from overdraft fees (FT) On the one hand, banks need to recapitalize themselves and a big way to do that is by earning cash and keeping it on the balance sheet. Arguing that banks should cap these fees because they’ve received bailout money seems a dangerous way of getting the government involved in banking. We want the government OUT of banking. We want banks to live or die on their own. On the other hand, there’s a good argument to be made that overdraft fees are usurious. They hammer the poor in a way similar to payday lending. Is this just another case where the financially illiterate are being robbed blind? A Consumer Financial Products Agency might have something to say on the matter… (By the way, others including Felix have been on this story for a while.)
Cuomo orders dealers to stop deceptive cash for clunkers ads (oag.state.ny)
Freddie: TBW losses could be “significant” (CR) “TBW accounted for approximately 5.2% and 2.7% of our single-family mortgage purchase volume activity for full-year 2008 and the six months ended June 30, 2009, respectively.” That’s a lot of mortgages folks.
Knob Creek embraces failure (failuremag)
Great resume (todayilaughed) The details suggest this guy would be a good hire…