After big market upsets there is inevitably much more good material than I can begin to do justice in posts.
High Mercury Levels Are Found in Tuna Sushi New York Times
Wamu Continues To Take Its Lumps On Appraisal Practices Bank Lawyer’s Blog
News Nonsense Cassandra Does Tokyo.
Painful Investment Advice Dean Baker
How to Stop the Downturn Joseph Stiglitz, New York Times.
Four Myths About the Stock Market Felix Salmon
Fed Watch: The Surprises Just Keep Coming Tim Duy Economist’s View. There is a particularly interesting comment:
I missed something critical – Bernanke’s blasé attitude about global imbalances….
Bernanke appeared to dismiss, as late as September, the possibility of a sudden stop of capital inflows to the US. But that is in fact exactly what was happening in the mortgage market – a broad global pullback from the asset class sapped households of one source of financing.
Eeek! Does this mean Bernanke might still be blasé? That in his having decided there are few impediments to further cuts, he has forgotten to consider that tanking the dollar might make the central banks who are so nice as to keep buying our Treasuries very unhappy?