Lunchtime Links 5-26

May 26, 2010

Fed’s next move could be reduced rate on dollar-euro swaps (Hilsenrath, WSJ) The Fed is charging so much that it discourages European central banks from drawing on the swap lines. That’s good. If we’re dealing with a liquidity problem, as opposed to a solvency problem, the idea is to lend freely, but at penalty rates, not market or below-market rates…

Geithner to urge European bank stress tests (Lodge, CNBC) Sound advice. The stress test is Geithner’s biggest achievement as Treasury Secretary. It can be argued that banks still have too little capital, but at least they’ve got a lot more than they did. Geithner deserves credit for forcing them to do so. Euro banks could benefit greatly by going through the same exercise.

Thirst for knowledge may be opium craving (eurekalert) “Neuroscientists have proposed a simple explanation for the pleasure of grasping a new concept: The brain is getting its fix.”

The net worth of U.S. presidents in today’s dollars (Atlantic) Washington was worth over $500 million…

House Republicans, meet the world wide web (Milibank, WaPo)

Some spat-upon NYC bus-drivers take months off (AP) “The indignity is considered an assault under the drivers’ union contract. That entitles them to take a paid break.”

Oscar….just…he just…jumped man. It was horrible! (imgur)

2 comments

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“If we’re dealing with a liquidity problem”

Perhaps we start with using common words that have common meanings. The problem is a lack of money (not M1, or M2, or M3)- income versus debt. The lack of money is due to the fact that it all has been spent, and than some. The money that was loaned is debt that cannot be paid back.

Borrowing is not income, and debt is not wealth

Posted by fresnodan | Report as abusive

“Sound advice. The stress test is Geithner’s biggest achievement as Treasury Secretary. It can be argued that banks still have too little capital, but at least they’ve got a lot more than they did.”

Yet at the same time people are blaming the higher capital requirements for causing the banks to retract lending at the worst possible time…

Posted by cswake | Report as abusive