BRIC Countries May Buy Each Other’s Bonds in Shift from Dollar – Must-read Bloomberg piece on ongoing discussions at the BRIC summit. A gradual shift away from the dollar, rather than the quick and violent exit some had predicted, is looking more likely.

FDIC Slaps GMAC/Ally on the Wrist – NY Times piece on how the FDIC is waking up to the idea that insuring overpriced GMAC CDs (which have a very high default risk) might not be a good idea. However, it looks like Ms. Bair’s strategy still needs some refining. At least they are acknowledging the problem.

Founder of Hedge Fund which gained 234% in 2008 starts ‘Hyperinflation Fund’ - 36 South, the investment management firm that founded the phenomenally-performing Black Swan Fund, has started a fund based on the risk of HyperInflation. Quote:

“There is certainly talk about inflation but people might think of inflation at 5 percent or 6 percent,” Zimbabwean-born Haworth said. “We’re talking 5, 10, 15, 20 percent or more.”

Krugman Op-Ed from 2002 -  Parts of it are quite prescient, and I’m not a huge fan. “To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

How To Raid Your Kid’s College Fund – MSNBC piece on how parents are increasingly raiding their kid’s college education funds in tough times.

International Demand For US Assets Falls in April – Bloomberg piece on the ongoing saga.

Shut Up! Announcing Your Plans Makes You Less Motivated to Complete Them - Interesting article on motivation, blabbing, and entrepreneurship.

Chicago Fed Pres – “Fed Must Be Ready to Act on Inflation”. Not many details on specific actions or timelines, as usual. Mostly just another “trust us, we’ll keep it in check”. Fisher, president of the Dallas Fed, had a similar message in Bloomberg interview yesterday.