Microsoft (MSFT) offers to purchase Yahoo! (YHOO). The blogosphere reacts. (DealBook, Big Picture, Silicon Alley Insider, Infectious Greed, Tech Observer)

Is the ‘era of invincibility’ over for Google (GOOG)? (MarketBeat)

A nice overview of equity market performance during this easing cycle. (Bespoke Investment Group)

“Bear markets follow long drawn-out shifts in fundamentals, but they do not go straight down.” (FT Alphaville)

“The question is whether the bond market will continue accepting the Fed’s reflation efforts?” (Capital Spectator)

Are the mortgage insurers the next industry under the gun? (Market Movers)

Judging Eddie Lampert’s investment in Sears (SHLD) over the long term. (Economist.com)

The current derivatives crisis makes exchange traded futures relatively more attractive. (Economist.com)

The growing threat that ETFs pose to the global (active) fund management business. (Bloomberg.com)

The many challenges in running an in-house hedge fund program. (Information Arbitrage)

Investors are getting fed up with merger arbitrage as an investment strategy. (Deal Journal)

Does it make sense to pay ‘2&20’ for most hedge funds? (IndexUniverse.com)

Inflation expectations are ticking back up again. (Real Time Economics)

“China’s latest export is inflation.” (naked capitalism)

“Job creation in 2007 was weak; it was especially punk in the latter half of the year.” (Big Picture)

A long-term chart of the Fed funds rate. (Trader’s Narrative)

“(T)he trading field is far from any kind of professionalization.” (TraderFeed)

The ad recession has begun. (Silicon Alley Insider)

The four (oftentimes competing) goals of tax policy. (Mankiw Blog)

The domain name business is booming. (NYTimes.com)

Have we missed something new in the investment blogosophere? Drop Abnormal Returns a line.