Lunchtime Links 5-26
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.”