Monday Links

Must-read article, with more about Longtop: "Apparently Longtop management interfered with the audit and the cash balances were faked. It has been a fantastic short–actually the second terrible company in which I have traded against Tiger Cubs. The game has gotten a whole lot more complicated."

Bubbles

• "Three years after the subprime-mortgage market’s stupendous bursting, suspiciously explosive growth is everywhere again."
• "At 0.006 housing starts per capita (at the peak) the typical family of four would be buying a newly constructed home every 42 years. If the typical family of four buys a newly constructed home every 42 years, then what is supposed to happen to all of the existing homes? Who is buying those?"

EU Crisis

• ZH: EU Holds Unannounced Emergency Talks With Greece Over Weekend To Draft Second Bailout As Two Year Greek Bonds Pass 26%
• Credit Bubble Stocks: This Time is Not Different.
• CR: "Next Greek bailout to include external supervision." We'll see how long this lasts.