Quite a few terrific articles worth reading to finish your weekend or start your week:

• Martin Wolf: Demand shortfall casts doubt on early austerity (FT.com)

• Debt is Still the Major Problem and Deflation is the Painful Solution (Comstock Partners)

• The three biggest lies about the economy (Marketwatch)

Show Him the Money: Tom Donohue scares millions of dollars out of corporations and Republicans. But is his U.S. Chamber of Commerce good for business?  (Washington Monthly)

• Gold is not as expensive as it seems (The Economist)

• The Con of the Decade: the transfer of private debt to the public (the marks), who then pays interest forever to the con artists (Of Two Minds)

• James K. Galbraith: The key to financial recovery: restoring the rule of law on Wall Street. (The New Republic)

• 27,000 abandoned oil and gas wells in Gulf of Mexico ignored by government, industry (NOLA.com)

• The kiss of the death cross (Marketwatch)

• Tips on Settling Defaulted Federal Student Loans (NYT Bucks)

• Judge slams, slashes “unconstitutional” $675,000 P2P award (Ars Technica)

• Wow, OT Victory for Spain. (ESPN)

Enjoy the World Cup — Overtime!

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.

18 Responses to “Weekend Linkfest”

  1. rjs0 says:

    the noisy commercial was very irritating, especially after i had opened several links in tabs and thus didnt know where it was coming from…so i closed everything but this, and bingo, here it was…

  2. Bob_in_MA says:

    “Debt is Still the Major Problem and Deflation is the Painful Solution”

    What moron wrote that? It’s one thing to argue deflation is an inevitable consequence of excessive debt, but it is the exact opposite of a solution. Deflation will exacerbate problems of solvency.

    That’s one of your picks, Barry?

  3. Jurgen says:

    Euro Area Breakup Would Boost Region’s Economies (Only Breakup To Solve Structural Problems in Europe)
    http://www.bloomberg.com/news/2010-07-10/euro-area-breakup-may-boost-economies-from-greece-to-germany-report-says.html

    US credit rating downgraded by Chinese firm
    http://www.google.com/hostednews/ap/article/ALeqM5hoClThrviIt1Jf_nVbVtdc6qQkxgD9GSNHN86

    Second Largest Portuguese Bank BCP Rumored to Be Insolvent (Google translation)
    http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.jornaldenegocios.pt%2F

  4. The Curmudgeon says:

    @Bob_in_MA:

    I think they’re arguing that inevitably decreasing levels of debt will yield deflation because of the decrease in money supply and velocity. It’s fairly clear something of the sort is happening right now, as private debt declines and the Fed seems powerless to stop it, short of just lending money to anyone, as they tried with the housing market, yet even that did little but slow and somewhat delay the decline in housing prices. The money supply has to increase faster than the decline in velocity just to stay even, deflation-wise, and even then, increasing money supply might itself be causing velocity to decrease. A liquidity trap is what they call it, but no matter its name, the reality is that oversupply of everything (except employment) is prevalent right now and it is pushing real prices down, or at least forestalling increases even in the face of expanding money.

  5. @Bob,

    What’s your solution?

    Answer, in truth, is there isn’t a good one. The choice is pain now or greater pain later. Often, the notion of a “solution” is relative…

  6. Now that Spain’s won, do you think we could get Paul the Octopus a show on CNBC? If he is only half as good in the stock market as he is with soccer, he’d still be beating Cramer’s record.

  7. VennData says:

    Too Rich to Live?

    “…You don’t know whether to commit suicide or just go on living and working,” says Eugene Sukup, an outspoken critic of the estate tax.

    http://online.wsj.com/article/SB10001424052748703609004575355572928371574.html

    Really, no comment is necessary, but I would like to get to the data in a few years to see if there was a statistically significant change in the rate of expiring, to shut these asshats up once and for all. Have they found a family farm lost because of the estate tax, yet?

    http://www.factcheck.org/article328.html

  8. VennData says:

    To Tom Donhue of the US Chamber of Commerce, the lobbyist’s lobbyist. A little note on what US businesses are doing regarding dividends…

    “…The first half of 2010 has seen more payout boosts, and the hikes are generally larger…”

    http://online.barrons.com/article/SB50001424052970203296004575351014017759930.html

  9. willid3 says:

    not sure that austerity now means that there will not be pain later. it could be that we end up with a repeat of the long depression instead. and considering how well the public took the great depression, and that they had a lot more patience, not sure that trying that today won’t end up with the end of capitalism and maybe democracy too. that was the real impetus behind the new deal.
    i still have just one tiny question
    if consumer are tapped out (and they loose even more jobs and income with austerity) and business has been AWOL in the US economy for a decade (even when given ever thing they asked for low taxes, and little to no regulating), and with the government pulling back, just what is going to drive demand? it won’t come from exports, every other country will be doing the same as the US. which will drop their demand even more than now.
    so are the auserians expecting aliens from space to come to the rescue? or is a miracle suppose to happen?

  10. Micheal Gat,

    you ask Bob: “What’s your solution?”

    then, posit: “…there isn’t a good one…”

    see if this http://blog.chinkinthearmor.net/wordpress/?p=333 points you to an acceptable one..
    ~~
    also, thought this

    By Gordon Duff STAFF WRITER/Senior Editor Veterans Today
    Two weeks ago, CIA Director Leon Panetta told the press the CIA had not been able to positively confirm any specific information on Osama bin Laden since “late 2000.” Interviews with high ranking military and intelligence officials, some at the highest levels, have confirmed that all evidence lends toward Osama bin Laden’s death in December 2001. Yet transcripts of translated audio and video tapes, albeit widely disputed, are continually released by a news agency tied to Israeli intelligence services.
    The transcripts of the last proven bin Laden interview, translated by the CIA, are compared to similar translations of a 2007 “broadcast” said to be by Osama bin Laden. Both are excerpted for length but not content. Striking differences between the two “bin Ladens” is obvious. In 2007, in a lengthy admonition, no mention of Israel is made whatsoever, nor of Palestine. In fact, the bin Laden of 2007 seems to be totally oblivious of Israel. We will begin with the CIA document, one that directly disputes claims made by the media for years. We thank the Central Intelligence Agency for making this document available…”
    http://redactednews.blogspot.com/2010/07/classified-cia-transcript-counters-bin.html

    was interesting..
    ~~
    and,

    “With news like this, who needs PR?”
    by Dan Alba
    Sunday, July 11, 2010
    Contrary to the American press’ reputation for giving voice to the voiceless, the largest voice is given to the most powerful monopolies, whose fallacies, lies, and assumed righteousness are amplified and multiplied with precious little skepticism.

    Perhaps you have seen the following justification for the U.S. military occupation of Iraq; a version has appeared for years in news reports and official releases…
    http://www.nolanchart.com/article7844.html

    “The persistent violence also has raised concerns about the readiness of Iraq’s government to take over responsibility for security as the U.S. prepares to withdraw its forces by the end of next year.” ["Al-Qaida in Iraq adopting Taliban tactics," AP, 6/17/10]

    While that may seem logical at first glance, one eventually wonders whether the editor is counting on a reader’s ignorance of the obvious: U.S. forces were in Iraq at the time. Apparently, the U.S. military occupation — which is obviously not achieving its goals of peace and stability — must continue anyway…”

  11. napster says:

    When I was reading the piece on the debt scenario provided by the Comstock Partners I got to wondering when the authors brought up the Social Security mandates. My understanding is that there is a surplus that is invested in Government T-Bills.

    We treat the investment (or transfer of taxes to) in these T-Bills as an unfunded debt. However, we can presume a constant marketability for these T-Bills when they are sold to pay the bills of the coming bubble in retirement age seniors. In other words, the investment in the T-Bills gets tapped (sold in the contemporary market) to pay the expenses. It’s not a debt in the same sense as a personal loan to purchase a car or a house. The taxes are used to pay current expenses and the surplus is used to purchase T-Bills.

    What matters when debt is carried by governments (and to some extent private businesses and corporations) is whether the interest payments are made. This is called servicing, but it is only possible when their is a market for the debt, and their will be a market for these large debts because the purchasers see them as a safe investment for their surplus cash.

    I get upset when I hear any scare tactics about Social Security because I don’t really see the program as being in crisis at all. And even were this to be true, simply raising the income cap that is taxed to $500,000 would easily solve a potential problem.

    But I wonder what other’s think.

  12. Andy T says:

    “simply raising the income cap that is taxed to $500,000 would easily solve a potential problem.”

    Yep. All problems are easily solved by raising taxes in some way.

  13. napster says:

    @Andy:

    I didn’t say there was a problem.

    How come you didn’t address the other 99% of the point I was making?

    If the cap is raised BTW the 99% of the population that makes less than the current top level of (I think) $91,000 …. WILL NOT BE EFFECTED AT ALL. Only those whose income is above the current cap up to the new cap.

    And yes, as privileged members of the best country on Earth, those who make more than 91,000 can pay a smidgeon more IF NECESSARY so that our older persons can live in dignity until they pass on.

  14. Jojo says:

    Businessweek
    Stock Market Analysis
    July 8, 2010

    Technical Analysts See Warning Signs for Stocks
    Technical analysts are seeing troubling signs in stock market indicators ranging from 10-year Japanese government bond yields to the Dow Jones transportation average

    http://www.businessweek.com/magazine/content/10_29/b4187045963897.htm

  15. Jojo says:

    Timing helps Sir Mick Jagger’s money making
    Sunday, 11 July 2010 16:20 UK

    Among the alumni of the London School of Economics, many have gone on to earn vast fortunes.

    The illustrious list includes Easyjet founder Sir Stelios Haji-Ioannou, French billionaire Delphine Arnault, and financier George Soros.

    One of its less conventional former students is Sir Mick Jagger, whose estimated £190m stash looks measly compared to the wealth of those above.

    But while those riches are ultimately down to his song writing, singing and guitar playing – business nous has undeniably played a part.

    ….

    http://news.bbc.co.uk/2/hi/business/10581280.stm

  16. wunsacon says:

    Jojo, I’m not sure it’s fair to measure Mick’s wealth using currency alone!

    >> Deflation will exacerbate problems of solvency.

    Bob, I agree with your literal statement. However, I think insolvency for unprofitable or overleveraged enterprises is a good thing. (I’m only interested in extending a social safety net to *people* — not institutions. That’s my understanding of how socialism/liberalism should work. In contrast, we keep getting screwed with establishmentarianism.)

  17. Gallery: Cars in Gaming Culture

    Since Gran Trak 10 in 1974, racing games have been a mainstay in gaming culture. With each evolution, graphics, effects and realism improved. Here are some of the highlights of that ongoing evolution…

    http://www.driving.ca/story.html?id=3251685

  18. JSchmid says:

    Nightmare! Here Is How The UK’s Emergency Budget Would Look In The U.S.

    We will have to do the same at some point soon, so why not freeze all government wages now?

    This is proof why the recession is not over yet.

    http://www.businessinsider.com/uk-austerity-budget-us-2010-6#a-freeze-in-all-us-government-salaries-higher-than-31100-1