Here are the latest adds to my Instpaper:

• Death Derivatives Emerge From Longevity Risks (Bloomberg)
• Health vs. Pork: Congress Debates the Farm Bill (PCRM)
• Abolish the Debt Ceiling! (Slate)
• China Home Buyers Make Vancouver Pricier Than NYC (BB)
• What Journalism Is Like Now: Working With 2,000 Sources (GigaOM)
• Iain Sinclair on London (The Browser)
• Thin-skinned bloggers (II) (The Star)
• Rosanne Barr on Charlie Sheen: And I Should Know (NY Magazine)
• Live from New York, It’s Anthony Weiner (Moment Magazine)
• “We’re On A Fucking Roll, Dude”: The 1993 Profile Of Lenny Dykstra That Warned Us What Was Coming (Dead Spin)

What are you 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.

14 Responses to “Wednesday AM Reading List”

  1. post apocalypsed american says:

    NOW LOOKING LIKE ROMNEY/BACHMANN 2012: Mitt would have (or has)
    the support of large corporation and wealthy indiviuals (like himself). Plus
    like with McCain/Palin 2008; Michele helps balance the ticket by winning
    the support of social conservatives, Tea Party and/or the values voters.
    Footnote: Pawlenty’s unexciting, Daniels too short, Ron Paul too nutty.

  2. JerseyCynic says:

    RE: Vancouver

    While our spent youth drink the LePage-Re/Max Kool-Aid, the deluded citizens of Vancouver continue to bombard me with reasons why the Chinese will eventually eat all of it. Here’s one now:

    Dear Garth: I enjoy reading your penetrating and insightful commentaries on the Vancouver real estate scene.  As much as I wish all you have predicted would come true, my reason begs to differ.  I am of Chinese origin (from Taiwan), but unfortunately the wrong kind for the Vancouver housing market.  In a few clearly futile recent attempts at house browsing I encountered, almost exclusively, hordes of Chinese buyers, sellers and realtors streaming through house after house, whose language I understand but with whom I apparently share little in common.  These are people who can easily put down $5 million in cash to buy a house with no questions asked, whereas I rely on a wage easily represented by that 31 to 1 price-to-income ratio for Vancouver.

    This brings me to my question.  All the predictions you and other respondents made at your column about an impending bursting of the bubble seem to be based on one number, namely this price-to-income ratio of 31 that cannot sustain the current housing market.  But if I just step into any weekend open house in Vancouver, my logic tells me that the correct ratio to use should be instead the Vancouver house price versus the Chinese millionaires’ income, which is more like one-to-one.  And in this picture, Vancouver houses are really dirt cheap and has ample room to grow another several hundred percent.

    I also know there is practically an endless supply of Chinese millionaires for the size of the Vancouver market, and they ALL want to buy houses here, driven by several factors:

    The same mass hysteria that emptied all the Chinese supermarket shelves of salt during the recent Japanese nuclear scare.
    All East Asian governments have recently implemented severe laws cracking down on property speculation, making gambling in Asian real estate not profitable any more.
    Vancouver continues being ranked the number one city to live in the world by The Economist.  There is a Chinese obsession with rankings.
    Vancouver has excellent educational resources.  There is a Chinese obsession with education.
    Vancouver is one of the best North American cities for keeping up an East Asian style of living.
    Buying with cash, these millionaires can afford to sit out any temporary downturn without lowering their house price, unlike in traditional bubbles.
    I wish all your predictions would come to pass tomorrow so finally I would be able to borrow frrom the bank up to my eyeballs and get maybe 200 square feet of house somewhere in New Westminster.  But from what I said above and from what I read in the Chinese newspapers,  I do not believe it will ever happen.  Maybe you are trying to prevent a mass panic by not giving the picture I am painting?

    Isn’t it time to get real and talk about the real price-to-income ratio as I described?  And isn’t the right question to ask what the BC government plans to do in the face of this runaway situation that will eventually drive every non-Chinese-millionaire out of a house?  Nothing?  This “bubble” is not like all the ones before, and relying on it to burst by itself because of the phony price-to-income ratio is unrealistic.  I can see this ratio go to the hundreds if nothing is done about it.  So please help me out here.

    See what I mean? Delusional. The yellow peril thing is being played to the hilt by local real estate marketing groups like The Key, and repeated ad nauseum by the Vancouver media. There has not been a single hard number generated in the past three years to show the extent of Mainland Chinese money flowing into the city’s housing market. Just a short swim away, Victoria’s real estate board has found that 90% of buyers there are Canadian, and eight out of 10 live in BC.

    Are Chinese buyers gobbling up some houses? Without a doubt. Are they responsible for runaway prices? Hardly.

    Grab a mirror, Van City. Take a hard look. You’re house junkies. Get over it.

    Now look at this. And tell me how it ends…”

  3. gms777 says:

    Stock market historian and CLSA consultant Russell Napier discusses with head of Lex John Authers his warning that the real bear market in the S&P has yet to come and could push the US equities index down to 400, plus he explains how emerging markets could trigger a leap in US Treasury yields.

    Also, the Mohamed El-Erian essay in which he says we are living through a period of “Financial Repression.” That term is the best I have yet heard to succinctly describe the period we are living through.

    Financial Repression….makes it sound like we are all living in Syria. Clearly, our government is standing on the backs of the little saver and the retiree, just like the Syrian soldier in the photograph showing him standing on prisoners’ backs.

  4. interesting..

    speaking of: “Trading as a “Massive Multiplayer Experience” ..

    • Health vs. Pork: Congress Debates the Farm Bill (PCRM) (link, above)

    “Farming”/”Farm Prices”, one of Today’s( and, one of the First) *Great ‘Outdoor Pachinko Parlors’..

  5. “Of the 204 new Obamacare waivers President Barack Obama’s administration approved in April, 38 are for fancy eateries, hip nightclubs and decadent hotels in House Minority Leader Nancy Pelosi’s Northern California district.

    That’s in addition to the 27 new waivers for health care or drug companies and the 31 new union waivers Obama’s Department of Health and Human Services approved.

    Pelosi’s district secured almost 20 percent of the latest issuance of waivers nationwide, and the companies that won them didn’t have much in common with companies throughout the rest of the country that have received Obamacare waivers….”

    speaking of MMORPs …

    though, here, with the MM-part, YMMV/YOMP

  6. rktbrkr says:

    The “transitory” increases in fuel costs are affecting consumer behavior after all, chalk up another miss for Ben Shalom

  7. rktbrkr says:

    Re Vancouver housing bubble…anybody remember Gary Shilling’s proposal to facilitate greencards for wealthy immigrants to buy RE here to soften the real estate bust? Still a great idea IMO, those Asians would be gobbling up Vegas foreclosures now.

  8. A Farmer says:


    It is an excellent explanation of the Old River Control upstream of the Morganza Spillway, which prevents the Mississippi from diverting down the Atchafalaya, with a bunch of river history hydrology, hydraulics, politics and geology. All good reading, which was brought out from the paywall because of the topicality.

  9. JerseyCynic says:

    Can’t wait to get my hands on this book by Jon Ronson “The Psychopath Test”. He was on Jon Stewart Monday.
    One of his best interviews, imho

  10. willid3 says:

    not sure how to take those who are doing the oppressing complaints about oppression. and low interest rates today are there trying to keep the economy from falling back into a recession. not good for savers. but then bond rates would be low any way corporate demand for credit is low, since the economy is still struggling to receover . and banks haven’t paid much for savings in almost 20 years now. and with the on rushing austerity movement . expect demand for credit to plummet