Morning Links, Friday the 13th

November 13, 2009

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….


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Its a good thing most criminals are morons, otherwise they’d figure out they don’t need to use a power projection device (a gun) as if it were a knife.

Of course, if you’re in a spot where you need a human shield… well, you done messed up already.

Posted by Andrew | Report as abusive

Dimon is reasonably right. There should be provisions for an *orderly* dismantling in the case of financial failure. A path to orderly receivership or orderly bankruptcy should be in place as soon as possible. Lehman was worse because it was disorderly and contracts were not unwound.

Bondholders in a bank failure should not be backed by the government. They should be losing their shirts.

JPM and Goldman are massively borrowing at near government rates rate now because it is believed that this paper is backed up by the govt.

That hint of a backup needs to stop with an explicit statement that bondholders would get their clocks cleaned if financial problems arose.

That would reduce the ridiculous trading profitability of Goldman and its TBTF accomplices that is based on borrowing at govt rates.

Oh and gotta say uncle sam won’t honor anybody’s credit default swaps. If the bondholders are really collecting on CDSs ultimately paid out by uncle sam like last time, there is no loss and the failure doesn’t really hurt.

Posted by Dan Hess | Report as abusive

Can’t let that Texas ‘might’ have executed an innocent man article stand alone. There ain’t no ‘might’ about it where the death of Melissa Northrup was concerned and her death can be laid right at the doorstep of death penalty foes and liberal judges. She is, unfortunately, not alone. I can give you other examples from other states but you chose Texas so read the story of Kevin McDuff!

McDuff was first convicted for raping and murdering three teenagers on August 6, 1966 — Robert Brand, Mark Dunnam, and Edna Louise Sullivan — a crime that became popularly known as the Broomstick Murders. His partner, 17-year-old Roy Dale Green, was sentenced to four months house arrest and five years probation. Although McDuff was sentenced to death, the sentence was overturned when the U.S. Supreme Court abolished capital punishment in 1972. His sentence was subsequently commuted to life in prison with the possibility of parole.

As a result of overcrowding in Texas prisons,[1] McDuff was paroled in 1989. After being released, he got a job at a gas station making $4 an hour and took a class, at Texas State Technical College in Waco.[2] One year after he left his job at a gas station and dropped out of TSTC, he began killing again. Upon release McDuff was arrested on a series of parole violations, but he was never locked up for any substantial length of time until he was arrested for the murder of a 22-year-old Texan woman, Melissa Ann Northrup in 1992. He was implicated in at least three other murders, including the abduction and murder of Colleen Reed from an Austin carwash in December 1991. He was considered, but ruled out, as a suspect in the Yogurt Shop Murders case.

As a wanted fugitive, he fled to Kansas City, but was eventually captured due to a tip from a profile on the television show America’s Most Wanted. McDuff was eventually sent to death row and executed on November 17, 1998 at Huntsville Unit.

Posted by sangellone | Report as abusive

“His sentence was subsequently commuted to life in prison WITH THE POSSIBILITY of parole”

You must have misread the article. The article and the debate is over ‘life WITHOUT parole’ as a substitute for the death penalty. Life without parole is the only option that saves both Melissa Northup’s life and Cameron Todd Willingham’s life.

Posted by postmodernprimate | Report as abusive