There is alot of interesting stuff being written by folks who are not exactly part of the cable news shouting match or who are talking about long term effects of this crash that may be useful. These are some of the best I read this week:
- NYT piece discusses something I’ve been pointing out for awhile — there is going to be a long-term if not permanent contraction of the consumption that so much of our economy was based on. To me, this is an argument for retraining to industries where jobs won’t be outsourced and additional investment (public and private) in New Economy initiatives.
- Not exactly news, but Barry Ritholtz gets on a righteous rant about the idiocy of bailing out AIG.
- Baseline Scenario discusses what would happen if bank bondholders were stiffed in receivership. Basically, they think that taxpayers pay to clean up the broken china; or taxpayers pay to keep the china in a cabinet that is currently leaning at a 60° angle. The key being that taxpayers pay and increasingly there are few to no scenarios where taxpayers don’t pay for failed banks.
How about you? Any Must read financial articles or blog posts you want to share?