That musty smell may be the key to preserving old books Los Angeles Time (hat tip reader DoctoRx)
Occupied Paris: The Sweet and the Cruel Ian Buruma, New York Review of Books
The Bad Ben Bernanke Bet Paul Kedrosky
Changing My Mind on Bernanke Economics of Contempt. Coming from a self-professed Team Obama stalwart, this is pretty surprising.
Fed Chairmen Never Learn Calculated Risk. Although I agree with the sentiment completely (the blog has inveighed on this topic), I have to correct the chronology. The Fed never opined on fiscal policy prior to Greenspan.
Jim Bunning Does Not ♥ Ben Bernanke Tim Iacono
Copenhagen climate change talks must fail, says top scientist Guardian (hat tip reader John D)
Hedge funds plowing into stocks, short AllAboutAlpha
The Mother Of All CDOs Wilmott (hat tip Felix Salmon)
Red Ink: Not an Illusion Michael Panzner
Gold and the central banks: the game theory Mencius Moldbug. Some interesting ideas here, but I’m not sure I buy his central premise, that outcomes are binary. Despite its following among a lot of financial blog readers, the gold standard has a bad name for a good reason. Inflation is MORE VOLATILE with a gold standard than under our current regime (check the stats here before you start ranting, the evidence is overwhelming) and with a gold standard, you can and do get deflation. That means formal monetization is less likely than its fans want to believe. But informal monetization, as a store of value in times of uncertainty, is another matter. People also used to use diamonds for this purpose, but now that they can be manufactured, they are less useful.
The Greatest Deception in the History of Finance Ken Thune (hat tip reader Doug)
Antidote du jour (hat tip reader Buzz):