Lunchtime Links 4-30
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….
Average maturity of U.S. debt on the rise (Kedrosky)
Big Picture’s view of the oil spill (Boston.com) Best photo collection of the eco disaster in the gulf.
Don’t mess with The Donald (comic)
Welcome to Arizona (imgur)