One World, Many Minds: Intelligence in the Animal Kingdom Scientific American
Disagreeing With Martin Feldstein on Defense Spending Stan Collander (hat tip Mark Thoma). A paragraph-by-paragraph refutation of a WSJ op-ed that argued for even more DoD feeding at the trough.
Hedgies Still Hearing “Redemption Song” Joshua Brown
Community Reinvestment Act Makes Bankers Stupid, According to AEI Research James Kwak (hat tip Brad DeLong)
People Pulling Up to Pawnshops Today Are Driving Cadillacs and BMWs Wall Street Journal
HUD Kills FHASecure HousingWire. We were singularly unimpressed when the program was created (see “Bush’s FHA Band-Aid” and “Bush’s Mainly Cosmetic Homeowner Rescue Proposals“).
Kudos for the contrarian John Kay, Financial Times
I Am Shocked That You’re Shocked…!! Cassandra. More on Madoff from someone who was skeptical early on.
Aggregate Demand and Finance and the Collapse in Trade Menzie Chinn, Econbrowser
GMAC Gets $6 Billion From Treasury to Help Revive Auto Lending Bloomberg. And this with the fate of the debt swap “unresolved” meaning management did not get the votes (which as Felix Salmon points out, means the refusniks did very well indeed). So the bondholders won’t take a haircut even to enable GMAC to become a bank, Cerberus is missing in action, and the Treasury stumps up with a $5 billion equity stake and $1 billion in loans. Charming. There was not doubt good reason they chose to announce it this week. And Mish has a nefarious theory.
IMF argues for large stimulus packages Financial Times. It also makes approving noises about the Obama program.
Antidote du jour: