Its all about Jobs, the economy and prospects for employment improvement in this morning’s reads:

• 25 Million Americans Are Unemployed Or Can’t Find Full-Time Work (NPR)
• Comparing Recessions and Recoveries: Job Changes (Economix)
• Should we be scandalized by IPO pops? (Interfluidity)
• Could Fast Food Automation Replace Low Wage Workers? (Econ Future)
• Apologies – we need a toxic rethink on the economy (FT)
• Despite Avoiding Past Economic Errors, Results Remain Disappointing (Barron’s)
• Lehman May Never Face Court Reckoning as SEC Enforcers Lean Toward Rebuke (Bloomberg)
• From Dodd-Frank to Dud: How Financial Reform May Be Going Wrong (Pro Publica)
• What Do Economic Models Really Tell Us About Elections? (NY Times)
• Microsoft’s Plans for Skype Are Unclear (NYT)

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.

21 Responses to “Monday Reading List”

  1. illoguy says:

    Love the reading lists. 80 percent of the articles on my Instapaper are from this site.

  2. Mike in Nola says:

    Looks like Apple’s success may cause it a bit of trouble in the EU. EU regulators actually do stuff, unlike in the US.

  3. Mike in Nola says:

    Read the piece on Skype and it was a strange and seemingly pointless deal, other than to keep Google or Facebook from getting it. MS already has several ophisicated voice/video chat programs predating facetime. Lync is marketed to businesses as a private, multiple mode communication network. and Windows Live Messenger had voice comm. But they are both central server based while I believe Skype can run peer-to-peer. Likely they will use it on Xbox games, but that’s not that big a market. Maybe there is something in the skype codebase it wants for Windows Phone or Windows 8 tablets.

    BTW, while on the NYT site, I looked to see what they said about Windows 8. Practically nothing. Guess that’s par for the course. Probably too busy fantisizing about iCloud.

  4. NoKidding says:

    “Its all about Jons”
    Just what kind of business are you running!?


    BR: LOL, Apparently, one without a spellchecker!

    I’ll fix

  5. Nuggz says:

    It’s not about jobs, it’s about housing and its direct effect on jobs.

    Americans put all their nest eggs in one basket(how’s that for a double idiomatic expression). And all those homes in the exburbs are going to be left for multi-family rentals, which is where these people should have been living before the credit “crisis”. That 5 percent unemployment rate in the US was smoke ‘n mirrors. Much like the entire Bush Administration.

  6. rktbrkr says:

    Construction is the one sector of the economy that couldn’t be exported (ignoring Mex day laborers) so when construction goes south it’s felt very directly, when mfgr slows down much of it is reflected in overseas jobs, construction has sort of a multiplier effect on income and consumer spending. When you don’t buy $1M of house the entire labor impact is felt locally, when you don’t buy $1M of PCs or $1M of autos the labor layoffs happen in Taiwan, Japan, Korea. When you spend $1M less in Walmart it’s felt in China.

  7. rktbrkr says:

    Great article comparing unemployment now to the First Great Depression, towards the end of the article it discusses the negative employment impact of post 9-11 military spending, very interesting.

  8. Nuggz says:

    From rktbrkr’s article:

    “Defense spending means that the government is pulling away resources from the uses determined by the market and instead using them to buy weapons and supplies and to pay for soldiers and other military personnel. In standard economic models, defense spending is a direct drain on the economy, reducing efficiency, slowing growth and costing jobs.
    A few years ago, the Center for Economic and Policy Research commissioned Global Insight, one of the leading economic modeling firms, to project the impact of a sustained increase in defense spending equal to 1.0 percentage point of GDP. This was roughly equal to the cost of the Iraq War.”

    Ah yes! This is what bravado, hubris, anti-intellectualism , and American exceptionalism has brought. Meanwhile, Iraq is an unmitigated disaster and the rest of us have to drive on pot-holed filled roads and travel through filthy airports.

    Just fuccen sweet.

  9. gopokes65 says:

    Hey Barry, been a subscriber of FusionIQ for several months now. Great service.

    How you determine who you tell what your current portolio positioning is. Sometimes I see it as a blog entry, sometimes I see it in the comments sections, other times, such as today, I see it secondhand on other blogs (reference to the Barron’s article). Any chance you could give your subscribers an alert letting them know that you are short the market? Not even asking to be the first one, just a heads up.


  10. We have been wrestling with how to do that at IQ.

    The cash/hedged position is in the most aggressive portfolios. Come the Fall, we are going to specialize the IQ product with some variants — so we will be able to tell if the subscribers break is an active trader, a market pro running other people’s money, or a more conservative Mom & Pop investor.


    Currently, there is no formal approach to announcing positions or postures — the aggressive portfolios get buys and sells regularly, the longer term Core portfolios get rebalanced quarterly.

    The first issue is to make sure we are on the right side of the Compliance rules — if we own something in SMAs (RIA), and are showing it to Institutions (B/D) or vice versa, that creates one set of issues.

    I don’t mention minor adjustments; We dont want to encourage over-trading. Sometimes, I will notice that out posture has moved away from the last pronouncement — the drift over 2 months from 86% to 70% to hedged — so I will update that when I see it.

    The key driver is whenever I suspect a significant change ahead. That is less frequent than most people imagine.


  11. Molesworth says:

    America’s dodgy financial plumbing
    Too big a fail count
    The sheer number of unsettled trades is rattling regulators

    CLEARING and settlement are supposed to ensure that share, bond and derivative deals are completed safely and on time. These back-office processes are arcane, unglamorous and too often taken for granted—until things go wrong, when their importance becomes painfully apparent. The financial crisis of 2007-09 and the “flash crash” of American stockmarkets in May 2010 revealed numerous faults in the plumbing. Efforts are under way to mend these, but regulators have been slow to attend to some worrying new blockages arising from today’s high-frequency and tightly coupled markets….

    for more, follow the link

  12. Barry, you need to set up an email list when you get all the rules sorted out. All good marketers know ‘the money is in the list’ (that is a common catchphrase among list marketers)

    For example:

  13. mathman says:

    (via Susie:)

    Can’t wait to go down the shore and jump in the ocean !!! Weeeeee.

  14. mathman says:

    Also, in agreement with Nuggz:

    (from same:)

    From the Pew Research Center:

    •According to the U.S. Department of Transportation, more than 25 percent of America’s nearly 600,000 bridges need significant repairs or are burdened with more traffic than they were designed to carry.
    •According to the Federal Highway Administration, approximately a third of America’s major roadways are in substandard condition – a significant factor in a third of the more than 43,000 traffic fatalities in the United States each year.
    •The Texas Transportation Institute estimates that traffic jams caused by insufficient infrastructure waste 4 billion hours of commuters’ time and nearly 3 billion gallons of gasoline a year.
    •The Association of State Dam Safety Officials has found that the number of dams in the United States that could fail has grown 134% since 1999 to 3,346, and more than 1,300 of those are considered “high-hazard” – meaning that their collapse would threaten lives.
    •More than a third of all dam failures or near failures since 1874 have happened in just the last decade.
    •According to the U.S. Environmental Protection Agency, aging sewer systems spill an estimated 1.26 trillion gallons of untreated sewage every single year, resulting in an estimated 50.6 billion dollars in cleanup costs.
    From the U.S. Chamber of Commerce:

    •A decaying transportation system costs our economy more than $78 billion annually in lost time and fuel.
    •The United States must invest $225 billion per year over the next 50 years to maintain and adequately enhance our surface transportation systems. Currently, we’re spending less than 40% of this amount.
    •U.S. transit systems earned a D+ rating from the American Society of Civil Engineers. Transit funding is declining even as transit use increases faster than any other mode of transportation – up 21% between 1993 and 2002.
    •Costs attributed to airline delays – due in large part to congestion and an antiquated air traffic control system – are expected to triple to $30 billion from 2000 to 2015.
    •By 2020, every major U.S. container port is projected to be handling at least double the volume it was designed to handle.
    •Throughout the United States, railroads are projected to need nearly $200 billion in investment over the next 20 years to accommodate freight increases.
    So, just how far up our ass do we have to have our heads to figure out we need to a national public works program, and we need it yesterday?

  15. formerlawyer says:

    I am sorry if this has been posted before but I found it very interesting – I had little knowledge of the extent of EU bank problems :–-and-what-will-it-cost-you/

  16. mutton says:

    Classic…”Florida couple forecloses on bank of America”

    I thought Barry would get a laugh out of this.

  17. Jojo says:

    Chinese Teenager Sells Kidney For iPhone

    Got about US$3,000. Brought an iPad & iPhone.

    Stupid but I guess he is happy.