Daily Reading: December 22, 2008

Re-default rates on modified mortgages are rising. Reuters.

Some background on Ponzi schemes from the NY Times.

John Meriwether's new hedge fund is experiencing major problems. WSJ. Coincidentally, Meriwether's last hedge fund, Long-Term Capital Management, collapsed almost exactly 10 years ago. As the old saying goes, "Insanity is doing the same thing over and over again and expecting different results." --John Dryden (I think???)

A key member of Congress is in support of releasing the second half of TARP before January 20th. AP.