Scariest Chart Of The Day – The Atlantic
Why Obama Must Take On Wall Street – Robert Reich
What is truly remarkable is what Congress and the administration have shown no interest in doing. Large numbers of Americans have lost their homes to bank foreclosures or are in danger of doing so. Yet American bankruptcy law does not allow homeowners to declare bankruptcy and have their mortgages reorganized. If it did, homeowners would have more bargaining power to renegotiate with banks. But neither Congress nor the administration has pushed to change the bankruptcy laws. Wall Street opposes such change and was instrumental in narrowing the scope of personal bankruptcy in the first place.
John Paulson’s high-risk hubris – Felix Salmon
Paulson was not actively trying to burst the bubble, in the way that George Soros pushed the pound out of the European exchange-rate mechanism with his legendary 1992 negative-carry trade. Instead, he was just the biggest of a long line of investors who saw that there was a housing bubble and tried to find a way to go short.
S&P Downgrades California – Calculated Risk
Possibly more IOU fun for California!
Forecast: Recession will continue in Sacramento region – The Sacramento Bee
The state’s budget problems will keep the Sacramento region mired in recession and push unemployment to 13.5 percent early this year, according to a new forecast.
Swiss Cheese Recovery, More Holes Than Cheese – Mish
Spending money we do not have, borrowed into existence on the backs of future taxpayers, can never produce a recovery. The current improvement in economic conditions is simply an illusion, like Swiss cheese without the cheese. Take away the stimulus cheese all you have is holes. That unfortunately is the true state of this recovery.
Wall St. Ethos Under Scrutiny at Hearing – The New York Times, Andrew Ross Sorkin
The exchange was particularly revealing because it laid bare an essential truth about the Wall Street ethos: if there’s a buyer — no matter how sophisticated — there’s always a seller.
Proof of Martians ‘to come this year’ – Scientific American
Final proof that Mars has bred life will be confirmed this year, leading NASA experts believe. The historic discovery will come not on Mars itself but from chunks of the red planet here on Earth.
