Assorted Links (5/11/2010)

Here’s a list of articles that I have been reading lately:

Did a Big Bet Help Trigger ‘Black Swan’ Stock Swoon? –

“A tsunami of selling pressure that spread to nearly all parts of the market last Thursday may have had its roots in a single bearish bet.”

Euro-zone Bailout Spurs Moral-Hazard Fears –

“A €750 billion bailout package for euro-zone governments facing debt troubles has created another urgent challenge for European policy makers: how to keep free-spending governments in line.”

Depression 2010?

“It is now conventional wisdom that the world has avoided a second Great Depression. Governments and the economists who advise them learned the lessons of the 1930s. When the gravity of the financial crisis became apparent in late 2008, the response was swift and aggressive.”

The Welfare State’s Death Spiral

“What we’re seeing in Greece is the death spiral of the welfare state. This isn’t Greece’s problem alone, and that’s why its crisis has rattled global stock markets and threatens economic recovery.”

What Happened to Due Process?

“A bipartisan group of legislators have introduced a bill that would focus on stripping Americans of their citizenship if they are found to be involved in “terrorism”.”

Landscapers find workers choosing jobless pay

“In a state with the nation’s highest jobless rate, landscaping companies are finding some job applicants are rejecting work offers so they can continue collecting unemployment benefits.”

Garven comment: Here is some compelling anecdotal evidence concerning the unintended consequences of unemployment benefits. Believe it or not, insuring people against the financial consequences of unemployment can actually create more unemployment!