Dan Loeb’s investment letter which we referenced yesterday can be downloaded at Market Folly.

The energy landscape by Zman.

Europe ‘falling behind US and blighted by energy costs’:  “Europe is falling dangerously far behind the US in productivity growth and is blighted by crippling energy costs, the pan-EU industry federation has warned.”  Ambrose Evans-Pritchard

Meanwhile, Saudi downplays shale boom outside US, Canada (HCP) and Obama budget would end oil industry tax breaks, hike royalites according to Fuel Fix.

Yesterday an ISA member asked about RNO.  My response:  “One of the best names in a bad industry (coal).  Needs improved industry conditions to maintain the distribution and is small.”  See the $2 handle on OXF for what happens when large distribution names collapse.  US coal producers scrambling in face of skyrocketing production costs at SNL.

Still Bullish on Housing says Bonddad.  Construction job openings (seasonally adjusted) are a lagging indicator and beginning to ramp higher.  St. Louis Fed

Investors buy into US builder recovery at the Financial Times.

Mortgages remain cheap.  CNN

Leverage:  Operating, financial and having capital when other’s need it:  Micro Fundy.

Chart of the Day: Corporate Profits vs the S&P 500 at Pragmatic Capitalism.