Interesting Picks: Another Revival Effort

I am trying again to revitalize Interesting Picks, my daily summary of the Economics news & blogosphere.

I was induced by a horrible piece by FT by Rajan. Actually, the piece makes very good points about the workings of a market economy... until the last paragraph, where the authors puts the blame of subprime lending to the US government. Even I know that is not the case, but who am I to argue with such a distinguished economist? So I was glad that even a more distinguished economist had the answer. Mark Tahoma summarizes the good points in the article.

DTCC's newly-minted snapshot of the CDS market. As the folks at FT Alphaville show, the CDS market is wrongly getting the blame for Greece's woes. Even if the size were bigger, there would be the obvious question of chicken-or-egg, but I see the question as fully resolved.

Yet another supplement to the recent IMF work on managing reserves. 

Speaking of the Fund, it is revising its tax proposal for the G-20 meetings. 

I always knew ignorance was bliss.

On Knightian uncertainty.

I close with gratitude to FT Alphaville and Alea for  saving me from the shame of missing a very important BIS paper.