Is it worth sacrificing success in good times in order to ensure stability during the bad?  Most quasi-socialist states (ie mainland Europe) say “absolument!”
“A more stable economy in a recession also means a less dynamic, less innovative economy in good times. For all its positive elements, the French model has not yet not incorporated enough [...]

“Welcome” inflation numbers this showed their to be few signs of deflation.  One would expect prices to fall with rising unemployment and falling output.  But then again, there is that issue of printing and borrowing trillions to finance an ever-increasing budgetary black hole being spent to shore up every type of politically-connected US industry under [...]

They didn’t want to have to do it…but reality sucks.
Falling interest rates, extended loans to banks, 60bn euros into Euro-zone economy.  It’s just a preview.
Link here.

Our love-affair with sub-optimal outcomes continues.  Who needs a big juicy stag, when you can get something much worse?  Rousseau knew what he was talking about, and the Chrysler bondholders are a great case study.
When they first asserted themselves (anonymously), the arguments were strong.  Negotations were only being conducted with TARP-money-holders, so their cooperation was [...]

Can you say lets-all-stay-on-message-and-see-how-that-works strategy?
Like two working parents comparing notes how to confront their rambunctious child who has just been sent home from school for the 4th time this week for vandalizing property and general rambunctiousness, it’s time for the government to gang tackle this bitch.
You hear that market?  You are now confident?  Ok?  Why? [...]

…it’s called finance.  (at :44)
Is this an appropriate analogy?  Government sinking vast sums of money and effort into the largest and most powerful companies in the country at the expense of other forms of investment.  Check.
But in most rentier states (Johnson identifies Russia and Indonesia), government money is wasted on suboptimal investment at the expense [...]

Awesomely hilarious.

An evil hedge fund manager has spoken out against Chairman Obama - in written form.
Some highlights:
“If you hired an investment professional and he could preserve more of your money in a financial disaster, but instead he decided to spend it on the UAW so you could “share in the sacrifice”, you would not be happy.”
“The [...]

There are now two venerable groups going about stressing various banks’ balance sheets. Not to feel left out, S&P is jumping on the bandwagon - they like to do reports on stuff we already know.

Following up on concerns being voice all over the place (including this website), the NYT highlights the creeping 10-year UST yield - highest yield since November.  While this is not high by historical standards, there is good reason to think that investors will demand more and more yield out of US treasuries as the government [...]