Tuesday, December 22, 2009

IS-LM links of the day 12-22-09

The bond yield curve has its widest spread ever (WSJ)
-This makes it more likely that banks will not lend to consumers and businesses so that, as the WSJ says, "the bigger the difference, the bigger their profit. Higher profits mean banks can refill their coffers." Waiting for banks to return to health will keep job creation and economic growth depressed for an extended period.

Vincent Fernando: Uhoh, 70% of Q3 GDP growth was Cash for Clunkers (TBI)

Having literal faith in your ETF(s) (Index Universe)

Doug Kass: Top 20 surprises for 2010 (Investment Postcards)

The Great Recession's Ten Commandments (The Reformed Broker)

What do people steal from bookstores? (NYT)