Reads of the day

Looking at the its balance sheet shows that the Fed has been flushing the system with credit.

Key facts from a new database on financial crises

How much you can buy with USD 700bn depends on the price.

To simplify is one of the key attributes of any economic modeler, and Richard Baldwin is no exception: His explanation of the Paulson plan and the argument against it is the best I have seen so far.

Much of the of the critique against the Paulson plan stems from the argument that banks are suffering from lack of capital, not liquidity. But, liquidity measures may help recapitalization of the banking sector, after all.

The two links above hint that the Treasury secretary is not a clown after all, even though his company is perceived to be as risky as the clown's. Gillian Tett of FT takes covers this as well.

Short-selling is a sin,but not if the Church does it...

The graphs of the day: The term structure of the turmoil, a la Morgan Stanley via FT Alphaville

In case you didn't notice: The Fed has cut rates, at least its NYC branch

Why doctors do not want you to be informed (dedicated to my friend Afsin Alp, who is hopefully on track to a fast recovery)