Hungary’s Spirits Are Back Up, on a Horse New York Times
Funds try to spot the great oil rebound Ambrose Evans-Pritchard, Telegraph
Inflation is looming on America’s horizon Martin Feldstein, Financial Times
How to really scare China Free Exchange
Calculated Risk: Undisputed Champion of the Econo/Financial/Business Blogosphere Real Property Alpha. Congrats CR!
The Fed’s Cash Machine Timothy Lavin, Atlantic (hat tip reader Dwight). Includes a very cool interactive graphc
Antiques rise as a safe haven for wary savers Independent
(Green) bamboo shoots? Brad Setser
Erin Go Broke Paul Krugman. OMG, Krugman is beginning to sound like Buiter! He didn’t use that turn of phrase, but he is worried about constraints on fiscal action.
Bank Lending Keeps Dropping Wall Street Journal. A very good piece of reporting. As we have said before, the media keeps focusing on the absolute level of lending activity, when the real issue is lending HAS to fall, since the bubble level was unhealthy and unsustainable. But it also is plenty likely that banks are reverting to usual downturn behavior and being too stringent. Regardless, this development will be used as an argument against letting banks pay back TARP funds. But presumably Goldman, as a non-lender, will slip the noose.
America close to the tipping point Animal Spirits. Today’s must read. An IMF analysis contradicts conventional wisdom among economists, borne out of America’s WWII experience, that the US could (maybe even should) run up a monster Federal debt to GDP (m dim recollection is we got to 110% of GDP then versus 40% now, please correct if wrong). The IMF contends that debt to GDP in excess of 60% increases deflationary pressures.
Antidote du jour (hat tip reader Kevin);