Friday Afternoon Linkfest: Required Reading

1. Warren Buffett gives a warning on U.S. debt.

2. Warning: China reduces holdings of U.S. government debt.

3. Andy Xie: New Bubble Threatens a V-Shaped Rebound.

4. 1 in 8 US Mortgages Falling Behind.

5. Barry Ritholtz on the latest existing home sales numbers.

6. FDIC is bankrupt. Read it here. Even though the FDIC is bankrupt it will not run out of money because Congress will most likely bailout the FDIC. Read it here.

7. Mexico decriminalizes small-scale drug possession. Glenn Greenwald on the drug decriminalization in Portugal. Read and watch here.

8. What Would Jesus Do? Ask Obama. The president's troubling use of religion to sell health care reform.

Mexico Economic Update

Mexico is the 12th largest economy on the planet. Right now the Mexican Peso has been getting crushed. Losing 24% versus the weak U.S. dollar over the past 12 months. Mexican has a budget gap of 480 billion pesos the largest in its history. Read all about it here.

One of Mexico's biggest problems is that it is running out of oil to export. Oil production in Mexico is falling dramatically (see picture below).