- Krugman does not believe in Reinhart-Rogoff idea that once a country reaches debt levels of 90% of GDP, it is a red line.
- WSJ Blog looks at a new paper on credit rating agencies model. It says 16% of triple-A rated subprime-mortgage bonds issued in mid-2007 should never have received that rating, given the information available at the time.
- WSJ Blog points to another paper which says commodities are behaving increasingly like stock indices
- Worthwhile Blog on Miscoordination of monetary and fiscal policy
- John Taylor looks at recent Fed policy to relaunch Swap lines with ECB. He says the swap loans declined sharply in one week and wonders why they declined so rapidly. He adds Fed should disclose its balance sheet on a daily basis
- James Hamilton says it is not just about Europe but China as well
- IMF Blog on why financial supervision is important. I covered the paper here
- Mankiw points to this superb article from Jeremy Stein – The Next Financial Crisis
- Jeff Lacker of Richmond Fed says unless we limit the government safety net which has been growing, we are not moving anywhere in space of financial regulation reform.
- Jose Manual Paramo, ECB Board member gives a superb speech on ECB”s credit risk framework