read this – Treasury Yield Plunge Sends Warning – By RANDALL W. FORSYTH – Collapse in note yields suggests economic distress will keep Fed on hold well into 2010 or beyond. – Barron’s
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must read – The King Canute Economy – by Cynicus Economicus – What we are seeing … is the process of governments seeking to hold back and resist the fundamental change that has taken place. The change that I am referring to is that there is a massive redistribution of wealth, and that there is now a situation of hyper competition throughout the world … it is unstoppable. Nobody is going to put the 100s of millions of new workers back in a box – and there are still large reserves of labour ready to enter the market. …It is only when the economy is seen in this light that we can truly see the madness of government policies – whether the policy of China, the US or the UK. Each country is seeking to maintain an equlibrium that never actually existed. …
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Read this – about hedge funds and principal reduction of mortgages – Wall St. Finds Profits by Reducing Mortgages – By LOUISE STORY – thanks Ira Artman – NY Times