Metal prices fall further than during Great Depression Ambrose Evans-Pritchard
Paulson Softening Stance on Foreclosure Relief Paul Jackson, Housing Wire
Manhattan Awash in Open Office Space New York Times
Oil Will Fall Further Without OPEC Action, Says BP Bloomberg (hat tip reader Scott). And stay down for 12 to 18 months too.
For College-Bound, New Barriers to Entry Wall Street Journal
Former Treasury Undersecretary Proposes 100 Year Treasuries Michael Shedlock. A not-bad takedown, but Mish misses the real issue. Exceptionally long dated bonds, like Disney’s 40 year bond, get sold when the long term environment is perceived to be reasonably stable AND the issuer is seen as rock solid. With all the talk about the coming multi-polar world, who knows what the US will look like in 100 years. Or even 30, for that matter.
Securities lending starting to dry up a little? AllAboutAlpha
Thoughts for the Day: AIG, Private Equity and Venture Capital Roger Ehrenberg. Check out the AIG mini-rant.
Finance, redistribution, globalisation Giuseppe Bertola and Anna Lo Prete, VoxEU
TIPS yields Jim Hamilton, Econbrowser, Intriguing.
Does exchange rate flexibility speed up current account adjustment? Menzie D. Chinn and Shang-Jin Wei, VoxEU. This is an important piece. Debunks a basic premise of floating rate currencies:
We find no robust evidence that the speed of current account adjustment increases with the degree of flexibility of an exchange rate regime. To be more precise, there is some evidence that, for non-oil developing countries, the most rigid fixed regimes have the fastest current account adjustment, followed by pure floaters. Countries with a dirty-float exchange rate regime exhibit the slowest current account adjustment.
Antidote du jour: