Lunchtime Links 4-30

April 30, 2010

Schadenfreude Alert — Goldman shares off 9% on criminal probe (Yahoo Finance/NYT) To be sure, the SEC’s case looks far from a slam dunk, and the burden of proof is higher in criminal probes (beyond a reasonable doubt) than civil ones (preponderance of evidence). So my uneducated guess is this doesn’t go anywhere.

Greek Prime Minister says country’s “survival” at stake (Petrakis/Weeks, Bloomberg) Doth he protest too much?

A few comments on the GDP report (CR) GDP, which grew at an annual rate of 3.2% in Q1, was driven by higher consumer spending, which itself was the result of a falling savings rate. Just the latest example that nothing really changed. Neo-Keynesian economists like Paul Krugman have argued that savings lead to a “paradox of thrift,” which will cause a downward spiral in economic activity. The argument is misleading. The downward spiral, when it comes, will be driven by private de-leveraging as debt is written down or paid off. Borrowing MORE money to finance continued growth means de-leveraging will be more painful in the long run. We can’t have our cake and eat it to….just ask the Greeks….

Study: Derivatives rules would cost banks billions (Dealbook)

Average maturity of U.S. debt on the rise (Kedrosky)

Big Picture’s view of the oil spill ( Best photo collection of the eco disaster in the gulf.

Don’t mess with The Donald (comic)

Welcome to Arizona (imgur)

Great excuse…

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