Monday, January 11, 2010

links of the day 01-11-10

John Taylor responds to Bernanke's Jackson Hole remarks (WSJ)
-Personally, I think that Mr. Taylor is right. And I would bet that Mr. Bernanke agrees with him as well - interest rates were held too low for too long. But as THE wielder of monetary policy in this country, Mr. Bernanke is not allowed to be fallible. Ex post he cannot be wrong, so I can see why he chose to defend his policies 2002-05 at the summer conference in Jackson Hole.

What would be the effect of the Fed discontinuing its purchase of MBS? (Calculated Risk)

The economics of virtual worlds (The Walrus) with a hearty hat-tip to Marginal Revolution

I'm not a technical guy, but I like reading their narratives:
Here is a write-up of a new pattern that has been occuring lately (InvestingwithOptions)