Sunday Brunch Breakfast Links

Posted by Jeff Carter
on May 29th, 2011

Hoenig becomes hawkish. There is no such thing as a free lunch. O% interest rates have costs other places in the economy. In this case, it’s inflation overseas, less income for people on fixed incomes, and misallocation of capital. The other phenomena is that banks are not too big to fail, they are “too bigger to fail”. Really bad responses in some cases to the economic crisis. Some good ones too, but on the whole we haven’t done anything to insulate ourselves from it happening again.

Bidders appear for the London Clearinghouse. Another effect of the Dodd-Frank bill is that things like clearing will move out of the US. The shadow banking system may also follow. Clearing is the backbone of trading. To some it’s a strategic asset, to others a utility. How you view it depends on how you are regulated.

North Korea is imploding. If it wasn’t for China, there would be a riot. The Chinese love stability, even when it’s the wrong kind of stability.

Retail sales of silver are exploding.

Dan Riehl exposes another Congressional sex scandal. This one with outspoken Democrat Anthony Weiner from New York. If this were a Republican they’d have woken you up in your sleep and told you about it. UPDATED: The left is trying to debunk this. Here is a logical way to look at Twitter and followers though.

China has a drought. One of the worst ever. This will put upward pressure on food prices.

The new Wienermobile. Fill up a sausage with Berkshire pork, and it would be my Batmobile.

Remember Swine Flu? They are talking it about it again.

From the “irrelevant news you can use” category. Lasers measure cow methane.

The 100th Indy 500 is today. Smaller teams are making inroads, but Roger Penske still is the big dog. I used to want to drive an Indy car until I saw one up close. I couldn’t believe how close the drivers’ seat was to the pavement. It also looked a little cramped for a guy my size. If you want to know why they get a bottle of milk for winning, read this.

Barcelona FC beats Manchester United for the Premier League championship of European Football. In the last 45 minutes, it was a rout. Last two goals by Barcelona were pretty cool.

Russia and Ukraine lift wheat export ban.

It’s not too late to plan something for Memorial Day.

Have a great day. The weather in Chicago has been absolutely horrible. I cannot imagine it’s much better anywhere in the Midwest. If you are long corn and bean calls, stay long. Otherwise, they are probably too bid up to make much on them.

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