Lunchtime Links 6-9
The blog prophet of euro zone doom (Thomas, NYT)
Hoenig wants a rate increase (Kelleher/Gillam, Reuters) He won’t get it. The Fed has trapped itself. The only way to keep the economy “growing,” is to pump ever more copious amounts of credit into it. If we’re not willing to put up with any recession whatsoever in order to pay-down/write-off debt, well, then, eventually we become Greece. Even central banks that print the currency in which their debt is payable can’t defy gravity forever. The Japanese have tried for the better part of a generation….hasn’t worked so well….
Here’s a chart to make the above point:
All TruPSed up (Alloway, Alphaville) Great, clear post from Tracy. Bank capital is still just about the most important issue in financial markets; this is the latest fight…
CHART: Mortgage purchase applications keep dropping despite low rates (Culp, Reuters) There will be no sharp recovery for housing. Too much shadow inventory and too little demand. Rates may even decline to new lows on more flight to safety buying of U.S. government paper, but don’t expect housing to get much of a boost.
Bubble Watch: $35k per night hotel room (Nassauer, WSJ) NY’s gilded age is surely returning post Lehman…
Whole new level of American laziness (reddit)
Weight-lifter goes for gold, projectile vomits on judge and passes out (windycitizen) He apparently went for a third attempt after this. Why? Just why?