Second Opinion

Behind the battle for Psychiatric Solutions: a moral fable on bidding technique, in auction form. Default: California's default risk is now higher than that of Thailand - which, you'll remember, is a blood-spattered, coup-plagued war zone. The lesson: sunny complacency is as bad for a municipality's economic health as the prospect of widespread civil unrest. Startups: For success in the startup world, fail early and often, at least one expert advises. But don't forget to succeed, or your VCs will be incandescent with rage. Or maybe they'll write a rock song about you. Sovereign wealth funds: They tightened the spigots in 2009; their assets are expected to grow; not earning fees for banks; Prince Alwaleed is not doing as well as Warren Buffett; a general overview here.

Carried Interest Taxes: The Obama reckoning has come. Related: KKR is afraid of interference from the gubmint. Flash Crash: We just had a hearing yesterday; yet another panel is coming. This crash is the best thing to happen for bureaucracy since the Kremlin. The Fed: Its superpowers remain intact; it will continue to oversee small banks. SAP: It's buying Sybase for $5.25 billion. Like so much in life, the deal is really about Oracle.

Parting Gifts: Anyone want to get me this tent for my travels, which Backcountry.com refers to as an "ugly shitpile"? It's only $50,000. I kid. (Backcountry) Green Eggs and Ham: David Rubenstein claims he reads six to eight books PER WEEK on international flights. That's less impressive when you learn Rubenstein's favorite author is Dr. Seuss. (Washington Post) Job Report: Jobs are back! So is unemployment. (Felix Salmon) Porn Company Has Plan to Stop SEC Time-Wasting: Starting on May 5, new customers who sign up using a '.gov' email address will be given a free two-week trial to the company's flagship subscription website Pink Visual Pass, provided that the workers only use the site between 6 p.m. and 6 a.m." Anyone who signs up will be denied access if they try to log on during the day. The Secret Cult of Office Smokers: Ostracized by their peers, smokers are taking advantage of their time together (Businessweek) Elevation Partners: With Bono on board, Roger McNamee's firm was the first celebrity private equity outfit. Now the founders are struggling to prove their model makes sense. (Businessweek) Private inequity: Investors push for more favourable fees and terms, and get them. (Economist)

Founders Fund: Raised $107 million from 21 investors. (SEC - VentureBeat) Freak Out! You may have noticed the markets kinda crashed a bit today, and of course, CNBC was there to cover it. Watch Erin Burnett and Jim Cramer flip out as the market collapses and rebounds (the rebound, of course, Cramer takes personal credit for). (CNBC) Cramer then claims the machines broke. NYSE says they were just fine, according to this random guy on Twitter. (Clusterstock) And also: To recap, here is the big sell off. Here is the recovery. Bon Appetit! Yelp is expanding to France. (Bits) Big Deals: Blackstone, TPG and THL are looking to buy Fidelity National. (Dealbook)

Newsweek On The Block: Jon Meacham, the magazine's publisher, may buy the magazine. (WSJ) Also, Business Insider has somewhat insultingly (or not?) bid $1 for the title. (Business Insider) Taking Full Responsibility: Jimmy Cayne, an adult, blamed "market forces" for Bear Stearns' collapse. (Bloomberg) Don't Want an MBA? Here are some business school alternatives. (FINS) Suit Happy: CalPERS is free to sue S&P silly. (Dealbook) The $2.3 Trillion Garage Sale: Can the Fed unload all the assets it acquired during the meltdown without crashing Wall Street again? (Slate)

Faber Report: Equity checks are shrinking and leverage ratios are rising. (CNBC) Hypocrisy: Anti-Wall St. Lawmakers Also Sold Stocks Short (Dealbook) Invest Here: The anti-aging industry is booming. (Businessweek) Every Dollar Counts: PE firms are cleaning up on dollar store investments. (Deal Journal) Lobby Your Heart Out: Why have private equity and hedge funds avoided much of the Wall-Street-directed ire of the last two years? Because of lobbying groups like the Private Equity Counsel, of course. (Politico via PE Beat)

Fat Cat Homes: Yes, in a cheap but effective pageview grab, Business Insider has detailed the 15 most expensive homes owned by bankers in Manhattan. Let the populist rage begin! (BI) To skip to Steve Schwarzman's $30 million home, which includes 11 fireplaces, 37 rooms, 43 closets, a gym, sauna, steam room, pool room, screening room and servant's quarters, click here. There's also Steve Feinberg's Egyptian mansion. Hmm: Goldman Sachs clients are preparing to sever ties. (All except Blackstone...) (Independent) Continental and United Complete Each Other: The gushy conference call and press release from the "merger of equal" airlines was a little too Jerry Maguire for Deal Journal. (DJ) Also, the deal was prompted by jealousy? Email Battles: Wall Street Defender versus Wall Street Antagonist. Groundbreaking Research: Bullies still pick on fat kids. In other research news, there is still no cure for cancer. (U.S. News & World Report)

Crying Wolf? A brief history of alarmist-and wrong-Wall Street predictions about the effect of new regulations. (Slate) I think I can I think I can: Valley VC's are, like, so done being down, according to this survey. (Dealbook) The Oracle Speaks: The economy is showing signs of improvement, according to Warren Buffett. (AP) Lucky Charms: They apparently actually matter. So, uh, forget about hard work or being in the right place at the right time. Just find that 30-year-old rabbit foot you carried around in high school. (WSJ) Where Have All the Bond Vigilantes Gone? Governments are borrowing more than ever, yet rates remain low (Businesweek)

Call of Duty: Former Military Personnel Find Work in Finance (FINS) TARP-less House: Hank Paulson is selling his D.C. house. (Deal Journal) When You're A Trader: How to respond to the question, "what do you do for a living?" (Kirk Report) Diss? Steve Jobs is over Flash. (Apple) Goldman Sachs! The Musical! (New Yorker)

Wall Street Speak: Terms of art, endearment and subterfuge, by Deal Journal. (DJ) Joseph Javier Perla: Facebook is a Ponzi Scheme. (JJP) Goldman Taint: Meg Whitman, former eBay CEO and California gubernatorial candidate, is getting some flack for her time on the board of Goldman Sachs. (FINS, Wall St. Whitman)