Lunchtime Links 6-4
Not for the forint-hearted (Alloway, Alphaville) There could be some political posturing behind these comments from Hungarian officials — who suggest, in effect, that Hungary is the next Greece. Still pretty unsettling.
CBO issues Fed-flattering propaganda (Naked Capitalism)
Global bank capital pact advances (Enrich/Paletta, WSJ) Article says the new Basel accords could require $1.2 trillion of additional capital and liquidity. Reminds me of Greenspan’s comment that U.S. banks should carry 15% TCE, which would force them to raise similarly huge sums. While everyone agrees banks need more capital, regulators aren’t actually going to force them to raise it while they’re trying to follow their faux dual mandate of not just keeping banks safe, but also encouraging them to “lend more to get the economy going.” The two goals directly conflict.
Happiness may come with age, study says (Bakalar, NYT)