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Best of the Blogs: Dangerous Budget Games


Minyanville's daily roundup of some of the best financial commentary from around the Web.

This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.

"It's clear that the United States is entering a long period of budgetary confrontation. Sooner or later, meaningful action on the budget deficit will be necessary. And despite the best hopes of budget hawks, the likelihood of a grand bargain that will solve our problem once and for all is extremely remote. Because all of the options for meaningful deficit reduction – tax increases, in particular – are extremely unpopular, it is inevitable that accounting gimmicks will be called upon to give the illusion of progress."
Zero Hedge
Link: And You Thought The Fed Was Bad
"When one cuts out all the noise, the only true purpose of aggressive (or not) central bank asset expansion, is to be a "buyer" of last resort of sovereign debt funding. Think of it as the source of credit money demand (and hence supply) when every other sector is deleveraging, and when a given Treasury authority needs to pump trillions in debt into the market but when nobody can afford to lever up and buy said incremental debt. Call it monetization, call it funding the deficit, call it whatever: that's what it is." (Also read Durable Goods and the Stock Market with the Fed in the Driver's Seat.)
"For the most part, text on the new Retina Display iPad looks amazing. Load a PDF with proper vector-based text onto it, and your document doesn't just look like paper; it looks like perfect paper. You can zoom and zoom, and every nuance in the kerning of your favorite digital typeface just looks more and more glorious. There's a big exception to this rule, though. Bitmap-rendered text - basically pictures of letters, which don't get redrawn when you change resolution - doesn't look so great on the new iPad. In fact, the text, upscaled to the new iPad's resolution, actually looks fuzzier than it does on iPad 1 or 2. And if you zoom in, it looks even worse."
China Real Time Report
"After a parade of ever-higher price targets for America's beloved gadget maker, Brian White of Topeka Capital Markets launched coverage of Apple this morning with a four-digit price target: $1,001.00. All of which raises the question again: Has Apple fever gotten ahead of itself? As it turns out, "Apple fever," fed in part by the company's prospects in China, is precisely the notion that White, formerly of Ticonderoga Securities, uses to justify his bullish claim." (Also read 1001 Reasons to Like Apple.)
Deal Book
"One of the top bankers at JPMorgan Chase in London resigned on Tuesday. Ian Hannam, JPMorgan's global chairman of equity capital markets, left the bank after British financial regulators fined him for disclosing inside information. Mr. Hannam said he would appeal the decision, which relates to two e-mails sent in 2008 to a prospective client." (For related content, see JPMorgan Ready to Take Wall Street Top Spot.)

Twitter: @Minyanville

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