For your perusing pleasure, here are several worthwhile reads for the weekend:

• SHILLER: Don’t Bet the Farm on the Housing Recovery (Sunday NYT)

• SEC looks to rein in trading battlebots (Ars Technica)

• 15% tangible equity capital survival ratio (Reuters)

• Prince Shows Shame, Rubin Defiance (WSJ)

• The Well-Off Are Spending Again (NYT)

• Of all the people in human history who ever reached the age of 65, half are alive now. (New Scientist)

• PIGS Exposure Explains ‘Shotgun Greek Wedding (Bloomberg)

• Why You Can’t Work at Work (Big Think)

• A New START: How the Nuke Reduction Treaty with Russia Will Make Us All Safer (Good)

• Art of the Steal: On the Trail of World’s Most Ingenious Thief (Wired)

Anything else worth reading ?

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

20 Responses to “Weekend Reading”

  1. formerlawyer says:

    How about:

    The American Banks, it seems never learn.

  2. cognos says:

    This site claims to have a real-time “count” of unique iPad seen across its web-ad network. From the looks of my Apple store… the product is selling EXTREMELY well.

  3. farmera1 says:

    Hoenig (President of the Federal Reserve Bank of Kansas City) is a man with common sense. I’ve heard him talk, from where I sit he seems to make a lot of sense. Nothing else I’ve heard addresses the problems.

    I wonder if some very serious people don’t look at our economy’s situation and say, the patient has cancer and it is inoperable. Give out the pain killers and send the patient home, maybe a miracle will happen and all will be better..

    Hoenig On megabanks:

    “I think they should be broken up. . . . We’ve provided this support and allowed Too Big To Fail and that subsidy, so that they’ve become larger than I think they otherwise would. I think by breaking them up, the market itself would begin to help tell you what the right size was over time.”

  4. eightnine2718281828mu5 says:

    re SEC looks to rein in trading battlebots;

    Instead of taxes you could introduce a randomization interval for each trade.

    ie, when an order is received at the exchange, the order is placed on hold for a random number of milliseconds (up to some maximum limit of time.)

    Background: ethernet uses a similar random backoff period as part of its congestion avoidance policy. When 2 NICs try to use the physical network at the same time, each NIC generates a random wait time before they retry.

  5. eightnine2718281828mu5 says:

    Plus it’s really simple to implement; all you’d have to do is add one line of code to the normal transaction processing:

    Sleep( rand() % maxMSec );

  6. bsneath says:

    Fed Had ‘Misgivings’ About Friedman’s Goldman Stock, Towns Says

  7. alfred e says:

    @eight…… : Yeah. What a dilemma for the SEC. How to pretend and yet let the TBTF have their way.

    At least they did the inquiry and published it. But something tells me the real story is not there.

  8. Someone was lamenting the other day about million dollar properties in Vancouver.

    Here is one in this article going for 1.3 million.

    Dream home it ain’t :)

  9. formerlawyer says:

    I would suggest in fact that many homebuyers are rushing to beat the expected increase in the interest rates. Remember the longest term you can get for a mortgage in Canada is usually 5 years so you will have to refinance anyways….

    although there are contrarian views..

    And we may be in a bubble anyways

  10. perra says:

    Reading about the recent events in Thailand made me think back to the recent post where we prophesied about the next country to implode.

    British journalist Andrew Marshall was in the thick of the action in Thailand in the past days and twittered on what he saw:

    “Scenes of chaos at Khao San. Tourists tell me they saw horrific injuries, an old man with an eye hanging out.
    Massive explosions, gunfire around Khao San.
    A Thai journalist carried out, bleeding.
    Pitched battles in streets around Khao San. Tourists ducking for cover. A red shirt with an AK47.
    Streets littered with bricks, other projectiles. Soldiers have retreated.
    Khao San is shuttered up, red shirts everywhere. It looks like a war zone.
    Don’t listen to bland Thai govt re assurances. Khao San is a dangerous place. I’ve seen two tourists with injuries.
    Barricades going up at Khao San. Reds preparing for soldiers’ return. dhSeveral pools of blood on road.
    Cars and buildings in Khao San riddled with bullet holes.”

  11. @ formerlawyer

    There is that. Plus in Vancouver, like your first article says, the new HST is going into effect soon on properties over 400K I think (don’t quote me on the number), so there is a rush to buy the high end deals. On top of that there was a number of properties that moved in Vancouver over the Olympics and that is spurring the local market and skewing the averages

    I have been hearing rumors that you can now get up to ten years on a mortgage. The rates are pretty high but some might want to think about locking in for that long. Before this year I think the longest I had heard of was 7 years at a few mortgage brokers so the banks are slowly stretching it out.

    I don’t doubt that before long we’ll be able to have a 30 year just like our friends down south

    Of course, by that time I will have changed my handle to ‘cranky old retired man’ and it will be too late. ;)

  12. farmera1 says:

    Hoenig (President of Kansas City FED) says break up the big banks (but let them re-agglomerate as I read his comments)..

    Greenspan says require the big banks to have 15% reserve requirements. “I presume, for example, that with 15% tangible equity capital, neither Bear Sterns nor Lehman Brothers would have been in trouble.” Greenspan 4/7/2010

    According to the article for the banks to have 15% reserves would require the banks to raise some $900 billion in reserves.

    Neither breaking up the banks, nor raising the reserve requirements to 15% would be easy or even doable.

    There are no easy answers and even fewer answers that are possible. After being a major factor in letting the banks run wild for decades, Greenspan maybe is now seeming to see the error in his ways. Can you trust him, who knows but he truly has a unique perspective. After all if you don’t listen to Heonig and or Greenspan, who do you listen to?

  13. thetanman says:

    The demographic train wreck continues. Italy, just a few short decades ago had the highest birthrate in Europe, now it has the lowest. Japan, Italy and Germany are getting into the fat part of the downward population spiral that will only accelerate as compounding works in reverse. Russia is struggling to solve their demographic time bomb that is devastating their population. Parts of Eastern Europe are losing population like rural Kansas, with the big show coming up-the Chinese demographic blow up. Whatever the Chinese are going to do economically they have to do it in the next 20-30 years. It’ll make the boomers look like a blip. Its one of the reasons that Africa and China are becoming a block of labor, population and natural resource exchange.

  14. vachon says:

    As the man said, Robert Rubin was born in a $4,000 suit and he acts like it.