Some interesting reads for Monday:

• Prepare for a rough ride, US warns world stock markets (The Telegraph)
• China to Wall Street via the Side-Door Shuffle (NYT)
• The Future of Economic Growth (Project Syndicate)
• Who Rules America? An Investment Manager Breaks Down the Economic Top 1%, Says 0.1% Controls Political and Legislative Process (Amped Status)
• Return of Mass Layoffs a Grim Sign for U.S. Workers (Yahoo Finance)
• Smash The Debt Ceiling (New Yorker) see also Wall Street Set to Act on Default, But How? (WSJ)
• China Property loans halted in 2nd and 3rd-tier cities (China Daily)
• Oil at $120 Becomes Biggest Energy Bet as Futures Leave Forecasters Behind (Bloomberg) see also BP Breakup Could Unlock $100B, JPM Says (Bloomberg)
• When Patents Attack (NPR)
• Hulu, Billed as Tomorrow’s TV, Looks Boxed In (NYT)

What are you reading?

Category: Financial Press

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15 Responses to “10 Monday Morning Reads”

  1. lunartop says:

    Cancelling on both sides of the equation. http://www.cargocultist.com/?p=1586

    21 Google Plus circles you can actually use. http://www.happyplace.com/8975/21-google-plus-circles-you-can-actually-use

  2. derekce says:

    The Amped Status article was informative. The part that caught my eye was where he estimated the lower 1% will draw 30-40 k a year in Social Security, when the way I understand it, you only pay tax on the first 106,800 of income and only at a 4.2% rate this year. Sounds overly generous but he also points out Social Security is a big part of their retirement plan.

  3. machinehead says:

    The 4th article, ‘Who Rules America?’ and the 9th one, ‘When Patents Attack,’ examine two different aspects of elite control by the top 0.1%: the first being financial control; the latter the systemic abuse of intellectual property rights.

    While there’s a lot of rentier income to be extracted via our dysfunctional system of patents and copyrights, such a system which concentrates all control within a tiny elite of giant corporations will systematically extinguish individual creativity.

    As the article makes clear, if a modern-day Jobs and Wozniak were to invent a new gizmo in their Silicon Valley garage today, they would be sued out of existence for patent infringement.

    The U.S., where one of the every four attorneys in the world practices, is euthanizing its future. And it’s
    ‘all legal.’

  4. willid3 says:

    derekce Says:
    July 25th, 2011 at 10:08 am

    The Amped Status article was informative. The part that caught my eye was where he estimated the lower 1% will draw 30-40 k a year in Social Security, when the way I understand it, you only pay tax on the first 106,800 of income and only at a 4.2% rate this year. Sounds overly generous but he also points out Social Security is a big part of their retirement plan.

    didn’t see any thing about the lower 1%. usually to get 40k from SS, you must almost be close to the top amount taxed (106K), otherwise you wouldn’t be coming any where close.
    but for those in the bottom 1% of all earners, wouldn’t surprise if SS is their only option. they have no money to set aside for retirement, as they are subsisting at best.
    and i really don’t understand why there is a cap on SS tax. removing that loop hole would certainly lead to SS being in better shape

  5. derekce says:

    Willid3- he was talking about the lower top 1%, sorry if I wasn’t clear. I just was wondering with the cap so low on paying Social Security how they can be expected to get 30-40 k year when paying 6.2 or now 4.2 on 106k a year for a 35 year work record sounds like a sweetheart deal. Anyway even the lower top 1 % are counting on government checks to make retirement work.

  6. machinehead says:

    According to Soc Sec, the average benefit is $1,177 and the maximum is $2,366 monthly.

    http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/13/~/average-monthly-social-security-benefit-for-a-retired-worker

    The maximum benefit corresponds to $28,392 annually. So it’s unclear where the ‘$30-40K’ estimate in the article comes from. At stratospheric income levels, part of this maximum benefit would be clawed back in taxes, making the net amount even less.

  7. willid3 says:

    moodysrating incompetence ? by design? again?
    http://krugman.blogs.nytimes.com/2011/07/24/moodys-blues-poor-standards-and-the-debt/
    seems they did the down grade thing before. in 2002

  8. Topspin says:

    When Patents Attack: “The portfolio eventually sold to Apple and a consortium of other tech companies including Microsoft and Ericsson. The price tag: $4.5 billion dollars. Five times the opening bid. More than double what most people involved were expecting. The largest patent auction in history.
    That’s $4.5 billion on patents that these companies almost certainly don’t want for their technical secrets. That $4.5 billion won’t build anything new, won’t bring new products to the shelves, won’t open up new factories that can hire people who need jobs. That’s $4.5 billion dollars that adds to the price of every product these companies sell you. That’s $4.5 billion dollars buying arms for an ongoing patent war.
    The big companies — Google, Apple, Microsoft — will probably survive. The likely casualties are the companies out there now that no one’s ever heard of that could one day take their place.”

    Smart guys.

    Regarding the top .1% to .06% I feel so sorry for those extremely hard working people who have to find a way to enjoy life on such relatively meager means. Its really worrying you know.

    Regarding the top .05% to .01% I feel so sorry for those who have to look at normal everyday people once in a while. What a difficult life being polluted with these vagaries in their midsts.

  9. Francois says:

    “As the article makes clear, if a modern-day Jobs and Wozniak were to invent a new gizmo in their Silicon Valley garage today, they would be sued out of existence for patent infringement.”

    Could it be why so many US corporations are opening R&D centers elsewhere on the planet?

    I know I would if I was CEO.

  10. AHodge says:

    really liked Who rules america

    the lower part of surveyed top 1% wealth still being mostly late in life hard workers and payin taxes sounds right and the real prob injustice and needed fixes being at the very top
    bankers, hedge fundies, option grant scammers and offshore investin plutocrats looks right
    i cant say where
    but there is a govt agency that is doing a serious income distribution study
    this slightly diff from the wealth spread cited
    but will likely be showing results by tenths % in the top 1% as the distribution absurdly skewed to top tenth of one percent

  11. AHodge says:

    the $40 k top social security benefit (and escalating its waged indexed) is for couples,
    but if the low end rich guy– or any rich guy– made top contributions (now on $104k income) i dont believe his spouse had to make any or much.

  12. AHodge says:

    financial repression broadly defined should include the extremely wealthy borrowing now at “zero” interest rates like banks do as author notes.
    this is an exclusive club
    banks hedge funds super wealthy not your chump with $5 million

    you cant start a bank now
    the FDIC will not give you this license to print money by borrowing free money
    its still reserved for those who got there first, likely now paying off past losses

  13. willid3 says:

    Francois Says:
    July 25th, 2011 at 12:16 pm

    “As the article makes clear, if a modern-day Jobs and Wozniak were to invent a new gizmo in their Silicon Valley garage today, they would be sued out of existence for patent infringement.”

    Could it be why so many US corporations are opening R&D centers elsewhere on the planet?

    I know I would if I was CEO.

    nope
    its because the workers are cheaper.
    of course, doing that in some countries (say China or India for example) have their own down sides. as any thing workers do there, might end up at a local company for less than you can sell it for. consider back in the 1990s, in China there was an SUV, that was nothing less than a copy of the Jeep Grand Cherokee. and it took a long time to get that vehicle from being produced. and today there are a lot of copies of all sorts of products (probably IPHONES and IPADs and others) that companies can’t get stopped fast enough, all that they can do is stop them from being imported into the US. and some times even then it takes a while.

    ~~~

    BR: Sued? Its more is more typical is that entrepreneurs and start up firms are ripped off by BigCo — fighting for those patents is costly and a time consuming affair.