TODAY’s recommended economics writing:

Vexed by the government’s poor handing of the banking problem, Yves Smith finds herself in a warranted state of apoplexy:


Given the inconceivably “draconian” caps on executive compensation, some financiers might take offense at Ms Smith’s last statement. After all, they’re making sacrifices, too!

Meanwhile, Brad Setser points out that the banking crisis is especially awful for emerging economies.

David Leonhardt comes to the defense of tax rebates, arguing that last year’s checks were actually somewhat effective. Would they work this time around? Unlikely.

Finally, a stimulus measure I can unequivocally support. Leigh Caldwell presents a compelling argument for bailing out the blogosphere.

And the recession isn’t all bad for Uncle Sam. Daniel Hamermesh notes that the Army is achieving enlistment goals for the first time in years, thanks to the amount of surplus labour available.