Weekend Reading

Stimulus bill caps banker bonuses to 1/3 of total comp, compliments of Chris Dodd (NYT, Naked Capitalism has great comment on this)

Berkshire Hathaway propaganda - first Warren, now Charlie Munger on restoring confidence... After S&P drops another 300 points it may well be Becky Quick (Washington Post)

How the crash will reshape America (The Atlantic)

Skyrocketing unemployment poses threat to global stability (NYT)

Weekly Chartology:

• Lending Standards Loosening

• Surging new debt issuance:

• Corporate spreads starting to fall:

• $2.1 Trillion in total losses from credit cycle (per Goldman)

• But only $1 Trillion has been recognized

• GS S&P500 Next Twelve Months P/E ratio and tradiling 10 year average