Morning Links 10-26
Detroit house auction flops (Reuters) “Despite a minimum bid of $500, less than a fifth of the Detroit land was sold after four days.” The article notes that “total vacant land in Detroit now occupies an area almost the size of Boston.”
Underpricing risk: Rescuers fear Yuppie 911 (MSNBC) A parable for risk management in the modern age. Since the government has proved itself adept at rescues, folks across the investing spectrum end up in sticky situations they were never prepared to handle on their own. What happens when so many people end up in the same situation that the government’s rescue facilities are overwhelmed? What happens when contingent liabilities break the federal government’s balance sheet?
Rally fueled by cheap money brings sense of foreboding (FT) One of Gillian Tett’s correspondents thinks October ’08 may just have been a dress rehearsal for the crash to come…
The “benefit” of Somali pirates (channel4) Somali’s get to catch their own fish…
Great Depression-esque bad debt at US banks (Alphaville) A great post from Tracy Alloway, using Moody’s data.
Reckless strategies doomed WaMu (Seattle Times, ht CR) Part 1 of 2.
Geithner wides bills-to-bonds gap with new sales (Bloomberg) Smart. The average maturity for Treasuries had reached just 49 months recently as Treasury sold more short-term debt. Better to lock in low rates now to reduce rollover risk.
Installing Windows (imgur)
Super cool…(funnier the second time through)