passing on more info

http://www.econbrowser.com/archives/2009/01/signs_of_a_thaw.html

if you're at the fed, you would be really happy about this. bernanke is coming to speak tomorrow and they can say what the fed can do, they have and they did so quickly.

of course, this needn't be due to TARP money and TAF. part of this could simply just be declining risk aversion based on the intuition that things will implicitly go back to normal and the virtually explicit government backstops.

on wednesday and this weekend, we should go back to the problem of how the US current account is going to adjust. that is still the gorilla in the room.