Tuesday links: contracts under assault

31Mar09

Why are we protecting bank bondholders at the expense of the larger economy and financial system?  (Clusterstock, Hussman Funds)

Hitting bank bondholders remains the “nuclear option” rife with risk.  (Real Time Economics, Clusterstock, Baseline Scenario)

What is an investor to do when diversification becomes “commoditized“?  (Zero Beta)

Count the PBGC among those taken in by the conventional wisdom on asset allocation.  (naked capitalism)

After the market crash there are many equity mutual funds with embedded capital losses.  How can you use that to your advantage?  (Morningstar.com)

“Bottom line is run, don’t walk, away when someone tells you how unlikely it is for an option to close anything but worthless. It’s a meaningless statement.”  (Daily Options Report)

How well does your ETF track its underlying index?  (Forbes.com, ibid)

Criticisms aside, “The vehicle itself (QAI) is an interesting idea as it could potentially give hedge fund strategy exposure to investors who typically do not have access to such alternatives due to regulations and restrictions.”  (market folly)

Don’t take every Wall Street axiom at face value.  (MarketSci Blog)

CDS-based sovereign credit risk is not fading from the scene any time soon.  (FT Alphaville)

How would we get to a world with no “too big to fail” banks?  (Market Movers)

Why was March so bad for the banks?  (Clusterstock)

Why banks shouldn’t repay their TARP funds just yet.  (Market Movers)

There are very good reasons to treat the banks and automakers differently.  (Balance Sheet)

Just how much does General Motors (GM) need to shrink?  (NYTimes.com also Atlantic Business)

By one measure house prices are back to 2003 levels.  (Big Picture, EconomPic Data)

Mortgage rates fall below 5%.  (Bespoke)

One fallout from the economic crisis, “Contracts everywhere are under assault.”  (NYTimes.com)

On the parallels between the US in 1929 and China in 2009.  (Infectious Greed)

Another head scratcher from Google (GOOG).  A push into venture capital when the underlying business is lagging.  (Daily Finance, A VC, Google)

High ticket prices and a down economy are putting the hurt on the new New York baseball stadiums.  (Floyd Norris)

Any book is “better with zombies.”  (Daily Beast)

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