BERNIE 'DYING' IN JAIL: '20 PILLS FOR CANCER' (NY Post)

"There's been much speculation as to why Bernie Madoff took the entire fall for the scheme -- and rumors of his suffering from pancreatic cancer surfaced many months before he arrived at the Butner, NC, complex in June." We didn't really think he confessed because his conscience got to him, but we did think he confessed because the market's plunge would have soon unmasked his phony boast of steady profits from his "investments" anyway.

'Cash for Clunkers' Environmental Benefits Are in Doubt (ABC)

Roundup of criticism (not only on possibly dubious environmental impact) of clunker program, including a mention of this Berkeley study, "The Implied Cost of Carbon Dioxide Under the Cash for Clunkers Program," which says the smokin' deals are "an expensive way to reduce greenhouse gases."

Roubini Sees Increasing Risk of Double-Dip Recession (Bloomberg)

Haven't reached the bottom yet, says NYU's self-promoting but often right economist.

Apple Highest Grossing Retailer on Fifth Avenue as Crowds Swell (Bloomberg)

Apple defies recession. Everyone wants an iPhone. Despite the annoying TV ads with the treacly music.

CITY DEALING TO MAKE LUXE CONDOS CHEAPER (NY Post)

At last: affordable housing in New York City. A $500,000 condo might wind up being marked down to $300,000. And developers/bankers would get $50,000 per apartment for doing this.

NASA May Outsource Amid Budget Woes (WSJ)

Federation runs out of money, thinking of hiring Ferengi to fly the Enterprise and the rest of Starfleet.

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Goldman's Tips Reward Big Clients (WSJ)

"Critics say Goldman Sachs gives key trading tips only to its own traders and favored clients, hurting others who aren't given the opportunity to profit from the information."

Status-Quo Anxiety (New Yorker, James Surowiecki)

"In theory, the public overwhelmingly supports health-care reform. But, when it comes to actually making fundamental change, people go all wobbly ..." It's more than just the "non-stop demonization of the Obama plan."

With Dad Laid Off, Finding Ways to Hold On (NYT)

Checking in on the rough life in Moreno Valley, California. Too bad the Winkler family didn't get paid for this story; they could have used the money.

Bulls of March Look Set to Trade in Their Horns (WSJ)

Healthy skepticism, kinda the opposite of the way Jim Cramer usually foams at the mouth. Not so fast on buy-buy-buy, say the analysts who were right about the market having reached bottom in March. They urged investors to buy. Now they're telling investors to put on the brakes a little because prices are overvalued.

Race Is On to File Clunker Deals (WSJ)

Tonight's the night. Hurry on down!

Arrest Over Software Illuminates Wall St. Secret (NYT)

Self-described as "a glimpse into the turbulent world of ultrafast computerized stock trading."

California GOP Pins Hopes on Ex-CEOs (WSJ)

In disarray nationally, Republicans on the West Coast look to Meg Whitman and Carly Fiorina. Here on the East Coast, not as much worship of any CEOs, and GOP still seems fixated on Rush Limbaugh and Sarah Palin.

France shows way on bonus restraint (FT)

Good luck getting the U.S. to do the same thing.

How toxic finance created an unstable world (FT, Wolfgang Münchau)

Yes, excessive greed "played a role," and so did Greenspan, but the "global imbalances would not have become so extreme if global finance had not provided exotic new instruments." James Lieber said the same thing seven months ago ("What Cooked the World's Economy?") in the Voice, but this is a pretty good piece.

Central bankers content to keep rates low (FT)

Leaving Jackson Hole after a surprisingly refreshing working vacation, world's bankers not too worried about inflation.

What went wrong? (Salon)

"It's almost Labor Day. Healthcare reform is struggling, the public option is near dead. Why couldn't Obama deliver?" Simplistic to blame Barack Obama. Health industry's lobbying plus a public brainwashed for decades about the evils of socialized medicine — that's the winning combination.

Investors demand return of Madoff fees (Guardian U.K.)

Lawyers latch onto a great clawback strategy: Sue any bank or financial institution that charged investors fees for advising them to put money in the Madoff scam's feeder funds. Britain's Standard Chartered Bank, for example, is estimated to have placed $300 million cash from wealthy American clients in Fairfield Sentry, raking in as much as $7.5 million in fees.

Why the Gang of Six is deciding healthcare for 300 million of us (Salon, Robert Reich)

It's come down to six members of Senate Finance. This is old news from a Clintonite, who asks, "Who, exactly, anointed these six to decide the fate of the nation's healthcare?" Riposte to Reich: At least somebody elected them for public office. Back in '93, who, exactly, anointed the unelected and frighteningly inexperienced Hillary Clinton to decide the fate of the nation's healthcare? Her husband. And Hillary immediately took the public option off the table back then.

Bank Asset Values a Lingering Problem (Seeking Alpha)

If only the banks had been required to regularly report the fair value of their assets, what a wonderful world it would have been. But reality happened.

If Asset Prices Are Dropping, Why Are Bank Stocks Rising? (Seeking Alpha)

David Goldman points out that regional banks are also poisoned by toxic assets. "Risk of relapse" in stock prices.

Oil Industry Details Costs of Climate Bill (WSJ)

Oil industry's top lobby commissioned this study of how the oil industry would suffer from proposed federal legislation.

Analyst Bove sees 150-200 more U.S. bank failures (Reuters)

FDIC will have to peddle its ass to private equity funds and overseas banks to scrape together enough money to pay for this mounting disaster.

A Toe in the Water: Real estate is starting to look cheap enough to buy. Or at least think about buying. (WSJ, Dave Kansas)

"Those fortunate people who have weathered the storm are emerging from their fetal crouch and starting to think more about taking some investment risks."

China to keep policy loose as economy faces new woes (Reuters)

Beijing's keeping the stimulus tap wide open for its exploding capitalism, keeping everything liquid. Premier Wen Jiabo is downbeat, saying "the foundations of the recovery are not stable, not solidified and not balanced." He makes Ben Bernanke sound like Pollyanna. But the figures are good from the Euro-zone — strongest monthly gain in industrial orders in 19 months, so maybe the bottom of the Great Recession has been reached, at least as far as the markets go.