Lunchtime Links 11-12
Wall Street faces “live ammo” as Congress aims to unravel banks (Vekshin/Schmidt, Bloomberg) Yves complains that this isn’t enough, that size isn’t the only problem. She’s right, but I think these are good discussions to have. We’ll have to wait to see what’s in theKanjorski amendment, but I like where his head’s at. To Smith’s point, we desperately need to SIMPLIFY banks, not just shrink them. Ironically, today is the 10 year anniversary of theGramm-Leach-Bliley Act, which repealed the last vestiges of Glass-Steagall. Besides GLB, we also need to dump the CFMA….
Have we reached peak gold? (Evans Pritchard, ht frog) Exploration budgets are up, but results have been poor. On the flip side, William Buiter is not a fan of gold. He makes some good points, though Jesse disagrees.
FDIC helps securitization market (Shrivastava, Dow Jones) Interesting,
The dollar is the most crowded long in history (Johnson, Alphaville) A very good point. I like to think of all the paper we’ve shipped overseas as “latent” inflation.
FHA’s cash reserves down sharply (Streitfeld, NYT) It’s capital reserves have dwindled to 0.53% from 3% a year ago. Given the high quantity and poor quality of loans FHA has been making of late — little down, low doc — it’s a good bet they’ll need a bailout.
The looming problem of corporate debt (Marketplace, ht Clusterstock)
Unsolicited principal reduction offer from B of A (CalculatedRisk)
Miracle whip vs. Colbert (imgur) Click to enlarge.
Awesome wheelbarrow race move (Youtube)
Carrie Prejean walks off Larry King (Youtube) Why can’t Larry be this tough with all his guests?
Dog greets owner coming back from war