Frontrunning: May 19

• Housing construction drops 12.8% in April, after 8.5% drop in March, to record low of 458k, CNBC, doing 180 degrees from yesterday: "This is good news as we need to hit 0 and kill excess inventory fast." (AP and Bloomberg). - Futures still positive... Someone is buying
• Daniel Och (Och-Ziff) stashes cash in anticipation of market crash (Bloomberg)
• Another wrench in Chryler bankruptcy's spokes (WSJ)
• Russian economy to shrink 8% this year (Bloomberg)
• Alan Abelson: The missed chance for a sentimental rally (Barron's)
• Treasury prices continue retreat (CNN)
• Krugman in China: stimulating, controversial and expensive (China Stakes)
• Volkswagen, Porsche need foreign investor [good luck] says Lower Saxony Prime Minister (Bloomberg)
• Spitzer: How to fix the New York Fed (Slate)
• Will the government reject TARP payments from Goldman and MS? (24/7 Wall St)
• The financial system lurking in the shadows (Marketwatch)