Lunchtime Links 3-16
Corporate debt coming due may squeeze credit (Schwartz, NYT) This is a big reason why quantitative easing — when it ends this month — won’t be gone for long. To avoid debt deflation, the Fed will be forced to absorb much more debt onto its balance sheet.
The recovery cannot be sustained (Alphaville) Elsewhere in this report from SocGen’s Albert Edwards, he points to a version of our favorite chart on leverage to explain why we’ve many years of economic stagnation ahead of us.
The Harvard thesis that inspired Michael Lewis’s book (Lattman, WSJ) There’s a link to the thesis in the article. Long, but worth a read.
NPR sells $160 million of debt as yields sink (Saraiva/McGrail, Bloomberg) Yes, that’s National Public Radio. You know debt markets are back open when fixed income investors will buy bonds backed by pledge drives!
At Lehman, watchdogs saw it all (Sorkin, Dealbook) I’m skeptical a new regulatory apparatus will do much good to corral the worst excesses of the banking system. After all, it still relies on regulators to do their jobs. As Sorkin points out, they were over Lehman’s shoulder even as it was using Repo 105 to manipulate its books. They won’t do their job any better next time as Larry Summers himself argued at an Economist conference a few months ago. In any case, there’s too much political pressure to do nothing. Talking to regulators in Washington today, one notes that they’re more concerned about lending than they are about regulating banks. But proper regulation generally means less credit…
Bank chief accused of TARP fraud (Wei/Bray, WSJ) And lots of other kinds of fraud to boot!
Hello America, My name is Rielle Hunter (DePaulo, GQ)
C-Span puts full video archive on web (Stelter, NYT)
Florida vampire to run for president (CBS) Watch out Barack.