Comrade Paulson seizes the economy’s commanding heights Paul Krugman. Before we all get too excited, remember that this is the man who gave us the MLEC, the Hope Now Alliance, the purchase of Bear for $2 a share, and China opening its financial markets.
Fear and loathing in the financial markets Willem Buiter
Why Have the Government Bailouts Involved Only a 79.9% Equity Position? Adam Levitin, Credit Slips. It’s not the reason you think….
Household Net Worth Drops 0.8% Wall Street Journal. That number seems light.
How Wall Street Lied to Its Computers Saul Hansell, New York Times (hat tip Felix Salmon)
Tighter Credit Transforming the Economy Louis Uchitelle, New York Times. We have said for some time that no savings and consumption accounting for over 70% of our economy is not sustainable. More savings (paying down debt) means less consumption. And even though no US politician wants to ‘fess up, lower consumption means a lower standard of living.
Greenspan’s sins return to haunt us David Blake, Financial Times
How SEC Regulatory Exemptions Helped Lead to Collapse Barry Ritholtz
Antidote du jour. Some readers were not happy with the inclusion of a melted plastic cow possibly masquerading as a bull, so we return to our usual programming: