What We Read Today 10 May 2013

Econintersect: Click Read more >> below graphic to see today’s list.

The top of today’s reading list has an Yves Smith review of foreclosure settlement fiascos…….. and the last article is an 18-month old debate between Global Economic Intersection contributors L. Randall Wray and James D. Hamilton about the size (cost) of the financial system bailout.

• More Foreclosure Settlement Fiascoes: Rust Consulting Underpays Some Harmed Borrowers (Yves Smith, Naked Capitalism)  Yves Smith has contributed to Global Economic Intersection.  The layers of interleaved corruption flowing through government and the financial sector is incredible (but unfortunately also credible).

• In the long run we are all in trouble (Niels Jensen, Credit Writedowns)

• Rep. Lamar Smith defends tentative changes to research funding (Morgan Little, Los Angeles Times)  Hat tips to Roger Erickson and Noah Smith.

• S&P 500 Breakout (Chart of the Day)

• China may not overtake America this century after all (Ambrose Evans-Pritchard, The Telegraph) Growth may already be below 7% and falling.  Global Economic Intersection contributor Michael Pettis says China’s growth potential is 3%, similar to that of the U.S.  See here and here.

• Obama Did It for the Money (Robert Scheer, Truth Dig)  Hat tip to Naked Capitalism.  What’s behind Penny Pritzker appointment?

• State Department Demands Takedown Of 3D-Printable Gun Files For Possible Export Control Violations (Andy Greenberg, Forbes)

• Reinhart and Rogoff publish formal correction (Robin Harding, Financial Times)  Nothing really new here.  They corrected spreadsheet errors but did not reassess their suspect methodology.

• The $29 Trillion Bail-Out: A Resolution and Conclusion (L.Randall Wray, Economonitor)  Hat tip to Roger Erickson.  Now nearly 18 months old, a debate between James D. Hamilton and L. Randall Wray is still interesting reading.  Both Hamilton and Wray have contributed to Global Economic Intersection.