City bonus round surprises on the upside FT Alphaville. Um, that means they were paid too much.
Will the Mortgage Industry Fix the Mortgage Mess Itself? A Look at Project Lifeline Adam Levitin, Credit Slips. A post I wish I had time to feature separately. Basically the timetable of foreclosures in many states means the 30 day freeze is useless.
Totally Spent Robert Reich, New York Times
Hackonomics The Big Picture. A well-executed evisceration of a New York Times op-ed piece.
Systemic risk rises: correlation hits new highs FT Alphaville (hat tip Felix Salmon). The last time this happened, May of last year, the Fed noticed, and dismissed correlation as a sign of systemic risk. The bond market reversal started with a dramatic shift in Treasury trading in early June that participants saw as a sea change and marked the beginning of the credit contraction.