links for 2010-01-26

The bubble in China's real estate is unprecedented and companies exporting for the country's construction sector should be watched carefully, James Chanos, president and founder of Kynikos Associates, told CNBC Monday.

U.S. President Barack Obama, under pressure from deficit hawks, will seek a three-year freeze on domestic spending in his 2011 budget that would save $250 billion by 2020, administration officials said on Monday.

Toxic assets will be sold with a AAA guarantee from the US government under one of the options put forward by the Federal Deposit Insurance Company.

The world has issued so much debt in the past two years fighting the Great Recession that paying it all back is going to be hell–for Americans, along with everybody else. Taxes will have to rise around the globe, hobbling job growth and economic recovery. Traders like Bass could make a lot of money betting against sovereign debt the way they shorted subprime loans at the peak of the housing bubble.

…end-of-2009 numbers from the big banks have been negative and analyst Joe Morford of RBC Capital Markets says to expect the same from smaller lenders. With mortgage problems already three years old, this raises the possibility that the banking sector may not snap back the way investors believe or regulators hope.