Links: This is What I Read

Of the posts I read this morning, as part of my morning routine, these were the most interesting or useful (to me):

MacroMan explains how the massive "equity market crack" (long energy and short financials) trade was responsible for the big move in equities yesterday in Just Say No.

Market Ticker demonstrates that politicians and Wall Street are doing everything in their power to make sure housing remains unaffordable in Pimco’s McCully and Sustainable Home Ownership.

In New York Governor Warns of Crisis, Mish makes clear that economic fundamentals are deteriorating rapidly. “In June 2007 the 16 banks that pay the most on their business profits remitted $173 million to the state treasury. This June, just a month ago, they sent remitted $5 million — a 97 percent decrease.”

Over at Naked Capitalism, they argue We Need a Recession (Well at Least a Slowdown). I’m a little harsher. Only a serious, deep and protracted recession will truly flush the excesses from the financial system and allow for some really good reform.

Paper Economy: S&P/Case-Shiller: May 2008, nothing but continued weakness in real estate prices.

Toro’s Running of the Bulls puts up a simple chart that makes it very clear: Housing Still Too Expensive.