Afternoon Links 10-13

October 13, 2009

The Pension Crisis (WaPo) “After losing about $1 trillion in the markets, state and local governments are facing a devil’s choice: Either slash retirement benefits or pursue high-return investments that come with high risk.” If history is any guide, they’ll reach for yield and the consequences will not be good.

Can your pet save you on your taxes? (ABC)

CIT closer to bankruptcy (Reuters) Also, CEO Peek is resigning at year-end.

U.S. wants AIG retention pay cut (WSJ)

Vacuum cleaner icon Dyson brings sex appeal to desktop fans (Reuters)

Kohn says rates will stay low for an “extended period” (Bloomberg) I wonder: The housing bubble was a direct result of a policy of too low rates for an extended period. Do supporters of current Fed policy think things will happen differently this time? If so, why?

“New” Michael Jackson single a “mistake” (Reuters) An obscure Puerto Rican singer just won the lottery…

How much gold does the U.S. have in reserve? (Jesse)

Driver splashes kids (YouTube)  Now faces “prosecution for inconsiderate driving.” (BBC)

Accordion

Flute

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Kohn says rates will stay low for an “extended period”
Low interest rates are one thing the Keynesian economists splooge their pants over.
But as pensions funds, insurance companies, and old people lose cash flow from bonds, I wonder if one of those economists will calculate the de-multiplier effect of all that interest not being paid – as well as the loss of wealth as principal is liquidated.

Posted by fresno dan | Report as abusive