A bank and two ratings agencies will have to defend a class-action lawsuit over subprime mortgages. Are companies ready to spend again? Will YouTube rent movies? Is the iPhone actually a pig? Many important questions this morning:

Read more about the subprime case at Reuters:

A U.S. federal judge ruled that Morgan Stanley (MS.N) and two credit rating agencies must defend fraud charges in a class-action lawsuit accusing them of masking the risks of an investment linked to subprime mortgages, and which eventually collapsed.

Elsewhere:

Boom and bust capitalism won’t be fixed (Daily Telegraph)

Are companies ready to spend again? (Businessweek)

Does Bernanke = Keynes or Friedman? (Reason)

The iPhone is a bandwidth-guzzling Hummer (New York Times)

YouTube to rent movies? (LA Times) Finally, a way to make money?

Professional beer pong? Sweet. (Marketplace Morning Report)