Afternoon Reading
By Barry Ritholtz - October 13th, 2009, 3:53PM
A few interesting reads for your Tuesday:
• Goldman Sachs: U.S. Stocks Primed for Takeovers (Bloomberg)
• Climbing the Golden Wall of Worry (Barron’s)
• Zen Lessons in Market Analysis (Hussman)
• Home rescue plan delaying, not solving crisis (Reuters)
• End the war on drugs, start the legalization (Marketwatch)
• The Years of Magical Thinking (NYT)
• Vitriol, invective at the speed of light (Associated Press)
• The Appraisal Process Moves Front and Center (Matrix)
• In handy spreadsheet form, a complete listing of the always stimulating TED Talks
• Credit Report Card: A Truly Free Look at Your Credit Record (Credit Bloggers)
• Thanks for all the great comments on car buying!
>
What are you reading?
October 13th, 2009 at 4:05 pm
http://www.spiegel.de/international/germany/0,1518,654596,00.html
German tanker gets caught by US transporting weapons for Iran.
October 13th, 2009 at 4:15 pm
http://www.minyanville.com/articles/10/12/2009/index/a/24904
The Credit Cycle Is Not Over
“I was asked about my thoughts on an article arguing about the bullishness of the credit markets and how it will drive the next leg of an equity rally (before it all comes to a terrible end).
I think basically, the same argument was made in Japan for years — that banks had little incentive to sit on reserves and would kick-start credit growth with a helping hand from the Ministry of Finance/Bank of Japan (MOF/BOJ). In fact, that didn’t occur, as bank lending ended up contracting monthly year-over-year for years, as bad debts were the match to build up in reserves. ”
…Why we are not quiiiite finished….(the ite must be strung out to get the proper vocal effect….)
October 13th, 2009 at 4:20 pm
I love Hussman. He always has something though provoking to offer.
I read his essay last night, took about 30 minutes to get my head wrapped around what he is saying. He should write a book on the Tao of Investing.
October 13th, 2009 at 4:31 pm
Dyson pulls another one, bladeless fans.
http://www.independent.co.uk/news/business/news/dyson-invents-fan-that-has-no-blades-1801662.html
Please God, don’t let my wife see this.
October 13th, 2009 at 4:55 pm
Auction Rate Securities still a problem for many stuck holding them at almost 0% interest rates. The below is a site on the latest ARS news and an exchange to sell your shares (at a loss of course).
http://www.secondmarket.com/markets/auction-rate-securities.html
October 13th, 2009 at 5:00 pm
Byboozian Says:
“German tanker gets caught by US transporting weapons for Iran.”
____________
Top 3 excuses the captain gave on seeing that the jig was up:
1. Didn’t know WWII was over.
2. US military has no jurisdiction on the high seas, as their Commander in Chief, Barack Obama, is not a US citizen.
3. Just call Dick Cheney. We’re working for him.
October 13th, 2009 at 5:03 pm
Hey, Ritholtz. How you doin’, pal?
I am gonna let things play out, but I just might have the funniest bailout story yet.
October 13th, 2009 at 5:06 pm
Court documents show that federal regulators were told about billions of dollars in bonuses awarded to Merrill Lynch executives during the company’s takeover by Bank of America – contradicting statements to Congress by Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson Jr.
The Securities Exchange Commission (SEC), in a brief filed in ongoing litigation with Bank of America Corp., said the bank informed the Treasury Department and the Federal Reserve of the Merrill Lynch bonuses as early as Dec. 17 – weeks before the government approved a $20 billion bailout to help the takeover.
The document disputes oral and written testimony to Congress from Mr. Bernanke and Mr. Paulson, who both said they knew nothing about the $3.6 billion in bonuses before the bailout was approved in January. ..”
http://www.washingtontimes.com/news/2009/oct/12/sec-says-bonuses-to-merrill-disclosed/#
but, We can worry about whether, or not, Palmeiro should have been indicted for ‘lying to Congress’, right?
http://www.google.com/search?pz=1&cf=all&ned=us&hl=en&q=Palmeiro+lies+to+Congress&btnmeta%3Dsearch%3Dsearch=Search+the+Web
October 13th, 2009 at 5:14 pm
Read the home rescue plan thingy, Barry, and thank god the first guy is childless…his dna does not belong in the general gene pool. Retired at 53, more than half his retirement goes to his house note, and all he can make is 900 dollars a year selling firewood. Let me give you a clue….get a real job at age 53…ever hear of minimum wage and Mickey D’s? Ever hear of Harlan Sanders? Do you know how old he was when he began KFC? c’mon man….
If this has been posted, sorry. So damn busy can’t get to the computer much…
http://www.nytimes.com/2009/10/13/business/smallbusiness/13lending.html?_r=1&ref=business
Credit Tightens for Small Businesses
October 13th, 2009 at 5:17 pm
Hey Hoffer, I am creating too many enemies all around. Would it be possible if we became friends again?
As you know, like Ritholtz, I have “Libertarian leanings”.
October 13th, 2009 at 5:18 pm
“Vitriol, Invective at the Speed of Light” — funny how the examples only show “one side’s” vitriol and invective. Which are labeled as “false” without any support for that claim.
And anyway, vitriol (aside from the rigorous chemistry definitions) means “caustic,” and invective means “insult or abusing”, none of which are de facto appropriate for simply incorrect facts (well, in all fairness, invective also refers to accusations and denunciation, but if everybody else can slant their facts, so can I).
Finally, before you get all vituperous and invectivey on my ass, here’s the “I’m on your side” password:
“Bush is dumb. Everything (now and forever) was his fault.”
October 13th, 2009 at 5:22 pm
Regarding the appraisal article, “They are undervaluing because they are unfamiliar with the markets they appraise in”.
What a bunch of BS. Everyone thinks their community is a niche market and “no way could someone 100 miles away appraise my home”.
October 13th, 2009 at 5:27 pm
CNBC S,
Were we, ever, ‘not Friends’ ?
though, OOC, what’s w/ the Enemy creation?
past that, this is a nice pictorial http://www.jordanmaxwell.com/articles/pictures/pictures9.html
~~
“The United Nations Human Rights Council will reopen a debate about
alleged war crimes in Gaza later this week, officials said Tuesday, after Palestinians succeeded in gathering enough support to call a special meeting.
“The holding of the special session is at the request of Palestine,” the United Nations said in a statement circulated on Tuesday in Geneva, where the 47-member body is based.
Advertisement
The debate will start Thursday, a day after the UN Security Council in New York discusses the Goldstone report, which accuses Israeli forces and
Palestinian militants of war crimes and possible crimes against humanity
during their Dec. 27-Jan. 18 war. ..”
http://www.haaretz.com/hasen/spages/1120776.html#
October 13th, 2009 at 5:28 pm
Hoffer said: “but, We can worry about whether, or not, Palmeiro should have been indicted for ‘lying to Congress’, right?”
http://www.google.com/search?pz=1&cf=all&ned=us&hl=en&q=Palmeiro+lies+to+Congress&btnmeta%3Dsearch%3Dsearch=Search+the+Web
So true! Bread & circuses though.
October 13th, 2009 at 5:46 pm
@ Mark E.Hoffer
Whew, I am glad that you always viewed us as friends, Hoffer. We have had some edgy moments. Anyway, I always liked the style and content of your postings, even if I philosophically did not agree with each item. On the whole though, I would agree that we would all have been better off if the Constitution had been interpreted conservatively all along, but such is human nature to risk the self-destruction of all progress our species has made.
@ Bruce in Tn – I don’t know if you recall, but I took RW’s side in his debate against you in July regarding race and the South, simply because he was a self-described “Kentucky colonel”:
http://www.ritholtz.com/blog/2009/07/media-appearance-glenn-beck/#comment-191708
I am glad you learned your lesson and was the first to draw out the ole’ Harlan Sanders card this time, because that fried chicken is mmm mmm finger lickin’ good! I don’t know about that grilled chicken crap, though.
October 13th, 2009 at 5:47 pm
http://finance.yahoo.com/news/Loan-losses-could-eclipse-apf-2741562707.html?x=0&sec=topStories&pos=4&asset=&ccode=
Loan losses could eclipse positive bank earnings
…Shock! Who on earth could have seen this coming!…Franklin, Franklin…where is our spinmeister of ceremonies when we need him! Franklin, come home…Timmy is stuck in a cave!
October 13th, 2009 at 5:59 pm
@Bruce
Intel said it all, and I’m afraid I’m not the type to console angry bears who bet against America. =)
October 13th, 2009 at 6:01 pm
Info about Hank Paulson’s phone records during 2008:
http://www.thedailybeast.com/blogs-and-stories/2009-10-12/paulsons-revealing-phone-records/?cid=bs:archive6
October 13th, 2009 at 6:29 pm
“Intel said it all, and I’m afraid I’m not the type to console angry bears who bet against America. ”
are Bears betting against America? I would counter that Bears are the ones who want “CHANGE” for the better- to “own” what is before us and to make corrective action to make this a better country- now let’s examine something-
as prices are being driven up by TA types and not value investors at this point in the rally- once technical indicators are not reinforced to the upside- TA folk will be selling- all the way down- since no value investor is there to buy shares-
are the sellers then betting against America?
so in your view- there should never be a point that a person should sell their shares- regardless of fundamental weaknesses- because it is betting against America-
so – as an example- as the last vestiges of the British Empire were collapsing- your call would have been-buy and hold- don’t bet against the British Empire-
pretty bad thinking there professor
October 13th, 2009 at 6:35 pm
http://ca.lifestyle.yahoo.com/family-relationships/articles/archive/cp/home_family-_let_me_be_clear_the_words_obama_clearly_can_t_seem_to_avoid
Let me be clear, if this charade doesn’t end soon 666 will seem like heaven.
October 13th, 2009 at 6:42 pm
Whoooaaaa Dudes are American bears angry? What about? How about polar bears are they angry too?
I think Canadian bears are probably happy, but I haven’t seen a Canadian bear.
Anyway with the economy the way it is and unemployement as high as it is and what not, I would say there are some grummpy bears out there, but angry……Seriously…… Hey if they are that angry, they can just take a hit off my piece pipe and mellow out a whee bit.
Angry bears, Amercia don’t need any of them.
October 13th, 2009 at 6:42 pm
this rally is a show- i am mentally fatigued by it- and everyone except for the f411’s anf HW’s of the world- have their index finger on the sell button- waiting for the technicals to be played out
October 13th, 2009 at 6:43 pm
McHappy – you are betting against the USA. SHAME on you!!!
Seriously though, I know I’m not the only one who wanted to vomit over F411’s latest words of wisdom.
This is the same person who probably screamed in outrage every time Bush and Cheney accused him of not being patriotic by supporting the wars. Same shit, different president.
October 13th, 2009 at 6:43 pm
“They are undervaluing because they are unfamiliar with the markets they appraise in”.
Whiny bastards who bought too much house….
LB warned against shorting tech. Barry is long large cap tech and he’s no fool. The weak dollar means they will crush their earnings estimates, see INTC.
As for the banks, who the hell knows? Can’t see SILVER reporting earnings here, or a dividend….
October 13th, 2009 at 6:44 pm
McHAPPY if you were a bear, I bet you would be a McHAPPY bear
But unfortunally you and I and most people who are NOT STONED! Know the charade, doesn’t end.
October 13th, 2009 at 6:47 pm
Hey Thor, don’t let my little bro get you nausiated, he is just being a grumpy bear because mom likes me best and gave me the bigger brownie for breakfast this morning.
You also realize you have only ONE week left, before YOU become a grumpy bear……
October 13th, 2009 at 6:49 pm
Legalize and tax recreational drugs to pay for Health Care Insurance for All Americans.
October 13th, 2009 at 6:54 pm
Whooaaa VennDuda – you got my vote for prez man.
October 13th, 2009 at 7:11 pm
F420 – hah, I know – the countdown begins! Thankfully I’ll be on vacation when i quit so that should hopefully counter the grumpiness.
VD – Goodness – You got my vote too
October 13th, 2009 at 7:13 pm
I think Ritholtz deleted my last comment, yes? If so, good judgment there, Barry!
Recent developments lead me to believe that maybe, we can work out our differences without resorting to letting a boulder smash Piggy off the cliff. That would be a step in the right direction.
frankin420d rocks.
October 13th, 2009 at 7:19 pm
Franklin411:
“Intel said it all, and I’m afraid I’m not the type to console angry bears who bet against America. =)”
Samuel Johnson:
“Patriotism is the last refuge of a scoundrel”
rootless cosmopolitan
October 13th, 2009 at 7:21 pm
http://bytestyle.tv/content/does-more-federal-spending-better-education
~~
Rep. Alan Grayson: “Hank Paulson Had a $700M Conflict of Interest”
http://revolutionarypolitics.com/?p=2756
~~
Why Facebook could be the next big news publisher
Facebook’s growth, it seems, is limited only by the scope of Mark Zuckerberg’s ambition. It began as a social networking site trying to keep up with MySpace, but Facebook is now circling its own orbit.
All that’s stopping Facebook from becoming the pre-eminent news publisher for its 300m users is Zuckerberg’s desire to do it.
In an interview with The Wall Street Journal in 2007, Facebook founder Mark Zuckerberg alluded to a new stage to transform Facebook from simply a social media site into a diverse platform. He said that in future iterations, users would see “real stories being produced” on their Facebook feeds.
The obvious question is, would Facebook want to get into the news business? It’s clear today that it’s not exactly profitable. Or is it that this current business approach is no longer profitable?
http://refreshingnews9.blogspot.com/2009/10/why-facebook-could-be-next-big-news.html
~~
In other news, looks like Bloomie is taking “Business Week” off MHC’s hands..
October 13th, 2009 at 7:22 pm
@CNBCS – If the post you are refrencing that my have been pulled is in reference to your 5:03 post. I would like to hear it.
And also that is Mangy Mutt to you
Thor good choice, to get out of your normal enviroment and habits and best of luck to you on that, FWIW I have known, some people who have been able to quit and never look back, I hope that is the case for you.
October 13th, 2009 at 7:31 pm
WRT INTC — http://www.zerohedge.com/article/recycling-old-girlfriends
October 13th, 2009 at 7:33 pm
Mangy Mutt!
My post that was deleted was explaining to franklin411 that I keep generating traffic to the Democratic Party Web site, but 411 keeps converting people back to Republicans. I think Ritholtz deleted it when I explained how I was generating the traffic.
Good to see you, Doggy!
October 13th, 2009 at 7:45 pm
OH…. As far as I am concerned since both the Dems and Repubs seem to have the same self seving concepts they seem to be sleeping in the same bed – Hey would that make them homeconsepual?
And hey there ain’t nothing you can explain to my big bro that he don’t already know. You know.
October 13th, 2009 at 7:46 pm
And CNBCS – Just so you know, I am over at the FF site, sceaming how best to give your a thorough leg humping this weekend.
October 13th, 2009 at 7:57 pm
cnbcs-
half of infinity is less than infinity- right?
my math is a bit weak- but it’s got to be right- no?
hahahahah- thanks for taking my ff post seriously- got a double laugh out of it
October 13th, 2009 at 8:12 pm
ahab, you make me feel like an even bigger ass. I leave not with my head held up high, but with embarrassment. Well, not really.
Remember, fans: For Ritholtz inquiries related to The Great CNBC Sucks, see Bergsten, and for all FF inquiries related to The Great CNBC Sucks, see franklin420d.
October 13th, 2009 at 8:16 pm
Let me be clear: O has proven there is no difference between a (R) and (D).
This message was brought to you by the letter “W”.
October 13th, 2009 at 8:26 pm
O has proven there is no difference between a (R) and (D) /i/when it comes to bailing out the oligarchy/i/.
Fixed that for you.
October 13th, 2009 at 8:32 pm
Ahab – I took a math class once and the scarry thing is you can break each whole number into infinite parts 1/2 – 1/4 – 1/8 and you can break each of those parts into infinte pieces also, so there are an infinite amounts of infinity and each one of those parts has an infinite amount of segments to it, each infinity has it own infinity within in it, so half of infinity is actually less then half of infinity, unless you devide by zero.
October 13th, 2009 at 8:42 pm
VennData Says:
“Legalize and tax recreational drugs to pay for Health Care Insurance for All Americans.”
____________
It’s too rational and all up side – the fuckwits will never consider something so obvious.
OTOH, if they did, cultivation should be limited to a set amount, per person, and there should be heavy regulation on the amount any one entity could sell, per year. The last thing we need is Monsanto, ADM, or one of the big tobacco or liquor corporations controlling a thriving cottage industry.
October 13th, 2009 at 8:57 pm
Is this inflationary?
Colorado minimum wage to drop as living costs fall
http://globaleconomicanalysis.blogspot.com/2009/10/colorado-minimum-wage-poised-to-drop.html
October 13th, 2009 at 9:53 pm
franklin420d,
you may care to brush up on http://www.freemathhelp.com/asymptotes.html
~~
MA,
ADM and/or MON moving into the ‘legalized marijuana’-space could be the best thing, ever, to happen to the public, at-large..
I think the ‘blowback’ they’d generate, for themselves, would destroy their other businesses.
That community, see: http://www.google.com/search?hl=en&client=firefox-a&num=10&btnG=Google%2BSearch&as_qdr=all&as_sitesearch=hightimes.com&as_q=genetically+modified+foods&as_sitesearch=hightimes.com is well-acquainted w/ GMOs, and their processed-phood brethren.. http://www.google.com/search?hl=en&client=firefox-a&num=10&btnG=Google%2BSearch&as_qdr=all&as_sitesearch=hightimes.com&as_q=processed+foods&as_sitesearch=hightimes.com
ht tp://hightimes.com/
October 13th, 2009 at 10:09 pm
Here we go….
BofA to charge annual fees on some credit cards:
http://news.yahoo.com/s/ap/20091013/ap_on_bi_ge/us_bank_of_america_annual_fees
October 13th, 2009 at 10:16 pm
beaufou,
do your wife a favor, show her this, from the comments:
“Marketing company reinventing the wheel!
justwent wrote:
Tuesday, 13 October 2009 at 10:10 am (UTC)
The “air amplifier” has been around years. The use of high pressure streams to create low pressure flows is the same basic principle as what makes steam engines chuff up their stack.
The basic central injector was used to fire sand onto the track in difficult climbs. When we used to have the wrong type of leaves on the track! A solution that was lost in time.
This was developed to the air amplifiers and the air transport equipment used to move around light plastic parts and remove waste from machine tools.
You can even buy 40mm Air amplifiers from RS components. Then again, the other product referred to above, to dry hands is the ubiquitous “knife edge”. This has been removing liquids from products for years.
There are water flow equivalents that are used to dredge the sea floor of light silt. Even some propulsion methods use this amplifying technique.
This is NOT inventing it is application and marketing of current technology to the home by use of modern plastic engineering advances.
(What is missing is the purification needed to remove the “lumps” from the air so that the unit does not block up. It also needs a compressed air stream to be created. This of course would need a turbine or piston pump which would also have to be protected from particle clogging. It turns out the direct drive of a large fan, in a hole, is quite efficient in both energy and maintenance costs. BUT then Dyson is trying to sell maintenance, and filters, not long lasting products.)”
other comments point out that Dyson is a great Salesman, little more, as well..O, and btw, they’re correct..
for further, see: http://www.rexresearch.com/teslatur/teslatur.htm#1061142 “The Tesla Turbine” as another ex. of ‘old’ Tech capable of , current, ’state-of-the-art’ performances..
October 13th, 2009 at 10:27 pm
Mark Hoffer – Are you saying it is NOT ok to devide by zero? WOW it is a good thing I only took that one math class, cuz the others would have been a waste of time
October 13th, 2009 at 10:35 pm
A lot of people have called me a total asymptote.
October 13th, 2009 at 10:53 pm
But you will always be Mr. Asymptote to me….
October 13th, 2009 at 10:55 pm
franklin420d,
was, just saying you may confusing http://www.thefreedictionary.com/infinity with the theory of asymptotes..NBD~
past that, this http://www.analyzemath.com/Trigonometry.html is, prob, better than that ‘next’ Math class..
~~
Machine Tools Sales Down 67.7% Through August
AM Staff
10/13/2009
The monthly U.S. Manufacturing Technology Consumption report indicates that sales of machine tools and related technologies totaled $129.16 million during August, a decline of -14.8% from the July figure and -63.3% from August 2008.
Year-to-date U.S. manufacturing technology sales now total $1,041.57 million, indicating that 2009 is down -67.7% versus the first eight months of 2008.
The monthly report is compiled by AMT – the Association For Manufacturing Technology and the American Machine Tool Distributors’ Assn. The report is based on actual data reported by participating companies.
http://www.americanmachinist.com/Classes/Article/ArticleDraw.aspx?CID=84877&Refresh=1
that there are some of the green shootiest ‘green shoots’ I’ve done seen in a coon’s age..
October 13th, 2009 at 10:56 pm
Currently I’m reading an after hours price of 75.62 of USD as it performs seppuku.
October 14th, 2009 at 12:49 am
Meanwhile the doom squad, you all know who you are, are hit with smack in your face blow out Intel earnings. Of course you’ll all say they’re meaningless/rigged/manipulated/cooked because it doesn’t fit your way outdated doomsday scenario. Just remember who called this mini economic boom, that we’re now seeing in front of us all the way to your moldy bunkers in Nebraska somewhere.
October 14th, 2009 at 1:26 am
Energy crisis is postponed as new gas rescues the world
Engineers have performed their magic once again. The world is not going to run short of energy as soon as feared.
http://tinyurl.com/yg9p4yg
Why am I not surprised? Time for all the Malthusians to once again crawl back under their rocks
October 14th, 2009 at 11:19 am
The Federal Reserve’s Secret Lending of Public Money is Under Attack:
http://wallstcheatsheet.com/breaking-news/the-federal-reserves-secret-lending-of-public-money-is-under-attack/?p=2568/