Felix Salmon, “..every move upwards in US stocks or gold or the Aussie dollar or junk-bond indices is another step in exactly the wrong direction: it’s a step towards yet another massive crash. And it’s all being turbo-charged by Fed policy.”  (Felix Salmon)

Hedge funds have been prime beneficiaries of this ‘carry trade’ as their returns have been uniformly positive in 2009.  (EconomPic Data)

Mohamed El-Erian, “It is totally rational for risk markets to rally in the very short term when the FOMC flashes a green light for the dollar-funded carry trade. The challenge is that, in the process, they accentuate what is already a wide gap between valuations and the outlook for economic fundamentals in 2010.”  (FT Alphaville)

Checking back in on the VIX:VXX ratio.  (VIX and More)

The line to short JGBs is getting longer.  (FT Alphaville)

Doug Kass is not crazy about the Burlington Northern (BNI) acquisition.  (TheStreet)

Adam Warner, “So by all mean, simulate new sorts of positions on paper first, it will help. Just know that “managing” said position will differ once the lights go on.”  (Daily Options Report)

How mood can affect your “trading business.”  (TraderFeed)

Speaking of mood, how “solar winds” could affect your trading decisions.  (Behind the Headlines)

The economics behind how mutual fund fees are set.  (Atlantic Business)

Just how big are Wall Street bonuses going to be for 2009?  (WSJ, NYTimes, Dealbreaker)

Why would any board of directors provide incentives to CEOs to do deals?  (Breakingviews)

Goldman Sachs (GS) is paying less on its long term debt than Uncle Sam.  (WSJ)

Aswath Damodaran on the issues involved with estimating the equity risk premium post-crisis.  (SSRN)

Fama vs. Fox on the role of the efficient markets hypothesis in the credit crisis.  (Curious Capitalist)

The ten year Treasury-TIP spread has touched 2%.  (Carpe Diem)

Paul Vigna, “The Fed better hope it gets inflation, because if it doesn’t, it may get that other thing, the thing no central banker dares speak of.”  (DJ Market Talk)

Edward Harrison, “Why aren’t more municipal bonds being downgraded by the ratings agencies Fitch, Moody’s and S&P?”  (Credit Writedowns)

Legislation to break up too big to fail institutions is worthless without reform of the OTC derivatives business.  (Rolfe Winkler)

Recent productivity statistics are “stunning.”  (Crossing Wall Street)

Fifty years of economic history in one graph.  (Marginal Revolution)

Which central banks are next in line to raise benchmark rates?  (The Money Game)

Is China playing with fire by not letting their currency appreciate?  (Baseline Scenario)

Bloggers “mouth off.” Senior Treasury officials listen.  (Interfluidity)

Three potential trading-related bubbles blowing for retail investors. (The Reformed Broker)

Punditry, predictions and profits.  Science is following finance into the trap of making bold predictions.  (Abnormal Returns)

Checking in with the guys who bet against the bubble and won.  (Daily Intel via TRB)

More positive reviews of Greg Zuckerman’s The Greatest Trade Ever.  (market folly, Bloomberg)

The decade of Steve (Jobs).  (Fortune)

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