Lunchtime links 10-10
No bank failures last night, folks. Sheila took the night off…
“The deadline for Peace Prize nominations is Feb. 1, meaning the president was nominated after being in office for just 11 days.” (ABC) I really feel for the guy, being anointed before he’s really accomplished anything. Managing expectations is tough, Obama hasn’t done that very well…
What are these Fed Presidents up to? (Free Exchange) The comment from John Jansen is one I agree with wholeheartedly, it’s why I argue we need Fed fire drills, an argument first made by George Cooper. The Fed means well when it tries to telegraph its moves, but in doing so, it encourages excessive risk-taking via leverage.
The Democritization of credit is over; now it’s payback time (WSJ) A good article, but not nearly enough focus on the biggest chunk of debt owed by the person profiled. It happens to be a student loan.
The Lost Generation (BusinessWeek) Peter Coy writes about young people being ravaged by the recession. Looks like those ridiculously expensive college degrees they borrowed to pay for will end up albatrosses around their neck. See again, above.
Berlusconi “most persecuted man” (BBC) The quotes from this guy are priceless. To wit: “I am without doubt the person who’s been the most persecuted in the entire history of the world and the history of man.”
Controlling healthcare costs the American way: Not doing it (McArdle) We can learn some valuable lessons from the healthcare experiment in Massachusetts.
Asia steps in to support the dollar (FT) Lucky us. The Fed won’t do the job, so the Asians will do it for them.
VIDEO: Simon Johnson and Marcy Kaptur on Bill Moyers (PBS) This is an important interview to get a sense of how a prominent, well-meaning Democrat views the financial crisis. She’s absolutely right to be pissed about how banks have handled themselves during the crisis. My problem with her, and with other Democrats like Dick Durbin who complain that bankers “own” Congress, is that they can’t handle the truth. They say they want to cut banks down to size, but they refuse to grapple with the consequences of doing so. Breaking the banks, which is to say recapitalizing their balance sheets, is absolutely necessary as part of a general de-leveraging of the economy. But it will hammer us in the short run. Hundreds of billions of dollars of paper wealth will be wiped out, with all the attendant consequences for the real economy. Until Congress is prepared to make the American people take their medicine, nothing will be accomplished.
Girl scouts (imgur)
Another ingenious animal rescue…