Sunday links: systemic risks

16Mar08

The Bear Facts. (Portfolio.com)

The “terrifying speed” of Bear Stearns’ collapse has stunned investors. (The Atlantic)

Bear Stearns, as we know it, is gone and never to return.” (Information Arbitrage)

Are we now “Bailout Nation“? (NYTimes.com)

The Fed is afraid of the systemic risks of a Bear Stearns failure. (Real Time Economics, Market Movers)

“(C)ouldn’t we set things up so that the criteria by which investors decide where to put their money map more closely to what we would recognize as trustworthiness or character“? (Interfluidity)

Are big banks really any more efficient than their smaller brethren? (naked capitalism)

“A bank that wants to cut its traders and bankers off from sources of information seems to be making bad choices.” (DealBreaker.com)

Now is not the time to step up to the plate and buy the banks. (NYTimes.com)

What do the problems at Bear Stearns mean for market sentiment? (WSJ.com)

An “unforgettable” sentiment measure survey. (Trader’s Narrative)

Another sentiment measure that is signaling severe market stress. (VIX and More)

What level of returns, over the longer term, are truly impressive? (Bill Rempel)

SPACs are providing much needed exits for private equity firms. (The Deal)

“(F)inding long-term protection against inflation is anything but easy.” (Barrons.com)

Eurozone inflation is at a 14-year high. (FT.com).

“Why has the CPI lagged actual inflation for so long?” (Big Picture)

Alt-A is the new subprime. (NYTimes.com)

“If there is a profit opportunity in shorting Treasuries and buying MBS, then the Fed is in a great position to take advantage of it. The Fed has lots of Treasuries on its balance sheet that it can swap for MBS.” (EconLog)

On the bright side of the news, “Sometimes, when things look bleakest, it’s a sign the market is near a bottom.” (NYTimes.com)

A Dan Ariely daily double. On the threat of recession and a review of his book Predictably Irrational. (WashingtonPost.com, NYTimes.com)

“(I)t is just a matter of time before economists embrace methods from other disciplines in an effort to understand dynamic processes better than we do.” (Slate.com)

Google Ad Manager is a “game changer.” (BuzzMachine)

Want to catch up on what others are saying about Abnormal Returns? Check out our reviews page.

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