Floods completely cut off Rockhampton Sydney Morning Herald (hat tip reader Skippy)
Where Do Bad Ideas Come From? Foreign Policy (hat tip reader May S)
Holly Petraeus To Be Elizabeth Warren’s Pick For Top Post In New Consumer Protection Agency Shahien Nasiripour, Huffington Post
Strained States Turning to Laws to Curb Labor Unions New York Times. Notice the effort to use the push against public unions to break the remaining private sector ones.
On Reading “The Financial Crisis Primer” Menzie Chinn, Econbrowser
Battles loom between creditors and borrowers Financial Times (hat tip reader Swedish Lex)
The Credit Card Regulation That Could Hurt Stay-at-Home Parents Helaine Olen, Slate
Overheating East to falter before the bankrupt West recovers Telegraph (hat tip reader Crocodile Chuck)
US house prices – Roll out the welcome mat for a double-dip Alexander Gloy, Lighthouse Investment Management
For B. of A., mortgage ‘put backs’ aren’t over MarketWatch. I’m a bit puzzled by the reaction to this story. First, GSEs have much stronger putback rights than either the monolines or private label investors (like Pimco, BlackRock and the Fed). Second, as reader j points out, the Freddie payment is a $1.27 billion payment on loans with a $127 billion unpaid principal balance amount. Given the level of principal paydowns and refis, the original balance of these deals was probably double that. So everyone is excited about putbacks equal to roughly 0.5% of the original deal value? Admittedly the stock traded up on the news.
Hat tip reader Myles B: