International terrorism and the escalation effect Nauro F. Campos and Martin Gassebner, VoxEU
Polar Ice Cap Shrinks Further and Thins Wall Street Journal
Communities print their own currency to keep cash flowing USA Today (hat tip reader Michael)
Sayonara Japan, Hello America! Models and Agents
March PMI Data for China Out All Roads Lead to China
Soros says U.S. faces “lasting slowdown” Reuters. Key section:
“What we have created now is a situation where the banks who will be able to earn their way out of a hole, but by doing that, they are going to weigh on the economy.
“Instead of stimulating the economy, they will draw the lifeblood, so to speak, of profits away from the real economy in order to keep themselves alive.”
Banks’ 1st-Quarter Results May Show Improvement: Whitney CNBC. But she also says housing prices will fall an additional 30%. This is consistent with the Soros comment above.
Art prices fall 35% as collectors cash in Financial Times
Tokyo to launch record fiscal stimulus Financial Times. Note that the stimulus of 2% of GDP is in addition to measures of about that magnitude. However, given how dramatic the tailspin in the Japanese economy, this looks inadequate.
Economy Falling Years Behind Full Speed Louis Uchitelle, New York Times. Discusses how long it will take to get the econoomy back to its former level of activity.
Why didn’t Fed force big banks to take less of AIG bailout? McClatchy (hat tip reader Lambert)
The Geithner Death Star Felix Salmon. As in the Enron Death Star.
Toxic debts could reach $4 trillion, IMF to warn Times Online, The IMF now has a higher estimate than Roubini. What gives?
Fighting Recklessness with Recklessness John Hussman (hat tip reader Scott)
Antidote du jour. I think this is a kitten impersonating at tribble, but I welcome other guesses.