1. Fed is in action again and this time I expect the criticism to be much bigger than ever. It has cut discount rate by 25bps to 3.25 % , provide funds to securities firms and provided support to Bear Sterns via JP Morgan Chase.
WSJ Blog points to comments over increasing moral hazard. It also pointsthe reason behind Fed’s support to Bear Sterns. Read Mankiw’s comments as well. FIn Prof has detailed post
2. Econbrowser on recession
3. Jeff Frankel questions why commodity prices continue to rise despite the world economic growth slowing down? The answer will come in next post.
4. JRV saysBerkshire Hathaway is more like a hedge fund than an investment company. Well, so is the case with most financial firms.
5. TTR points to the mechanics of the debt waiver. He also points to the diverse views over India’s economic forecast
6. Rodrik asks whether he should start reading the economist again?
