Morning Links, Friday the 13th
3D recreation of Sully’s flight (exosphere3D) Everything you ever wanted to know about the crash in the Hudson. Multiple 3D recreations. Different audio streams.
Fed may cause next globabl crisis says Hong Kong leader (Anstey/Dwyer, Bloomberg) Interesting theory: Japan’s low interest rates through the ’90s inflated the tiger bubble that ended in the 1997 Asian contagion. Now the Fed’s ZIRP is inflating new bubbles throughout Asia. The explosion of bank credit in China isn’t helping…
Did the nation overdose on debt (Pragmatic Capitalist) An interesting and detailed paper from Wells Fargo Securities. Click “full screen” and then the printer icon to print out a copy.
Treasurys mixed after 30-year bond sale (Yousuf, CNN Money) Yesterday’s auction didn’t go well. This isn’t yet a trend, but if it becomes one, my bet is it will add to pressure on the dollar (down) and interest rates (up).
Hedge funds can’t mess up worse than Bob Rubin (Reilly, Bloomberg) The Dodd bill would allow shareholders to nominate directors.
No more too big to fail (Jamie Dimon, WaPo) This op-ed, by the CEO of JP Morgan Chase, is disingenuous in the extreme. In his second sentence he says that his firm should be allowed to fail if some unforeseen event pushes them over the edge. Of course they would have failed last year had the government not stepped in. Still, he goes on to argue that not only do we “need” large financial firms — to support multilateral trade — they should be allowed to grow even larger. Bill Black speaks of executives using a corporate entity as a weapon. Dimon knows his bank’s sheer size makes it unthinkable that the government would ever let it fail. He speaks piously of allowing bank failure, but will make sure his bank remains too large, powerful and interconnected for that to be considered an option.
Still haven’t put all your money in gold? You will when you see this chart! (imgur, Reddit) Clever response to my chart of the day…
Trade gap widens by an unexpectedly large amount (Palmer, Reuters) The falling dollar seems no match for Fed-induced demand.
New rules would restrict overdraft fees on debit cards (Labaton, NYT)
Did Texas kill an innocent man? (Economist)
Trippy Mandelbrot (wikipedia)
French-Irish diplomacy (imgur) I have no idea if this is authentic. But it’s pretty funny. (Click on the image to enlarge)
PSA: Just in case you’re held hostage at gunpoint….