Some really interesting reading today:

• West shows worrying signs of ‘Japanisation’ (FT)
• Growth Forecasts for U.S. Cut at Citigroup, JPMorgan Amid Global Slowdown (Bloomberg)
• It’s the household debt, stupid (Washington Post)
• Slower Business Spending Spells Trouble (WSJ)
• The State and Local Budget Crisis (Truman Factor)
• Derivatives: Repositories may need collateral data – report (International Financing Review)
• Google’s nagging media problem (Fortune)
• Renewables Give Us More Power Than Nuclear (Green Economy)
• Slip-Up in Chinese Military TV Show Reveals More Than Intended (The Epoch Times)
• Quake sensors removed around Virginia nuke plant due to budget cuts (Raw Story)

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 “10 Mid-Week AM Reads”

  1. bigal says:

    Matt Taibbi on the Explosive Investigation Revealing the SEC’s Cover-Up of Wall Street’s Crimes

  2. Raleighwood says:

    I would like to know if we are still under Cheney’s COG and if we are then why?

    And why is this thing still being renewed?

    Consistent with section 202(d) of the National Emergencies Act, 50 U.S.C. 1622(d), I am continuing for 1 year the national emergency previously declared on September 14, 2001, in Proclamation 7463, with respect to the terrorist attacks of September 11, 2001, and the continuing and immediate threat of further attacks on the United States.
    Because the terrorist threat continues, the national emergency declared on September 14, 2001, and the powers and authorities adopted to deal with that emergency must continue in effect beyond September 14, 2010. Therefore, I am continuing in effect for an additional year the national emergency that was declared on September 14, 2001, with respect to the terrorist threat.
    This notice shall be published in the Federal Register and transmitted to the Congress

  3. VennData says:

    White-Hot GOP Race Down To Two Mentally Ill People, Person Who Lost Nomination Last Time,21196/

    How DARE this media outlet make negative comments about the GOP nominees during a time of war(s)

  4. Jim67545 says:

    Really appreciate your sharing these articles. Some cannot be accessed (without subscribing) but still very useful.
    Read the one in Truman Factor. Purposeful deception and fraud aside, I see no rationale for generally blaming the lenders for originating bonds which communities now cannot repay because their revenues have declined. At the point of origination the lender’s due diligence said that there was, at that time, sufficient revenue and the community willingly, even eagerly, requested the funds for whatever purpose they had in mind. There was free will on both sides and they entered into a contract (the bond) with full knowledge BASED ON WHAT THEY KNEW AT THE TIME.
    What should be done to prevent this from happening in the future? If government officials only expose their communities to debt which can be repaid in a severe recession, then needed public improvements will not be built when economic expansion dictates new schools, highways, etc. Similarly, if lenders only use worse case scenarios to predict future repayment ability, then credit will probably not be extended.
    In lending sometimes things are going well and the borrower easily repays while at other times it is difficult. Can we blame either the lender or borrower when these difficult times arise?
    If the governmental entity floated bonds for projects that were not necessities or where they could not support both the debt service and the operating expenses, then I would place the responsibility there.

  5. VennData says:

    Markets Will Look for Hints in Bernanke’s Words

    Will Bernanke wear a hat?
    Will is case be super-fat?
    Will he loosely crop is beard?
    Will it be complete sheared?

    I do not like this Fed I say
    I wish that it would go away.

    Will Big Ben wear funny pants?
    Will he do a money dance?
    Will the Chair untie his shoe?
    Oh, and what will he NOT do?

    I do not like this Fed I say
    Should I buy more gold today?

    Will he smile or will he frown?
    Will he guide the future down?
    Will he slouch or sit up straight?
    Will he, won’t he raise the rate?

    I do not like this Fed I say
    Give me the olden, golden way,

  6. streeteye says:

    Fortunately, the Lake Anna nuclear plant practically at the epicenter was built to withstand a 5.9-6.1 quake according to the article #facepalm

  7. Robespierre says:


    Which resonates with me well. If big government is bad because it miss allocates resources (battle cry of the right wingers). Then, doesn’t it follows that concentration of power by a few oligarchs suffers from the same. From the article:

    “The answer is that an extreme concentration of wealth at the center of our market economy has led to a form of central planning. The concentration of wealth is now in so few hands and is so extreme in degree, that the combined liquid financial power of all of those not in this small group is inconsequential to determining the direction of the economy. As a result, we now have the equivalent of centralized planning in global marketplaces. A few thousand extremely wealthy people making decisions on the allocation of our collective wealth. The result was inevitable: gross misallocation across all facets of the private economy. “

  8. Robespierre says:

    Don’t know if BR posted this being the interactive graphic junky he is so just in case:

    housing-income affordability:

  9. Cosco warned of worldwide ship seizures

    One of Greece’s most high-profile ship owners has threatened to seize ships belonging to China’s biggest shipping company, after it halted payments on high-priced charter contracts.

    George Economou told the Financial Times that Cosco’s stance over contracts struck during the 2008 shipping boom might reflect a failure to understand the importance of honouring past deals. Cosco, the world’s largest operator of “dry bulk” ships that carry iron ore, coal and other commodities, has become a major international player only in the past decade.

  10. A Huge Housing Bargain — but Not for You
    August 24th, 2011

    Via: The Street:

    The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.

    These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

    You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

    In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates…..

    sounds Kosher~

  11. wunsacon says:

    >> If government officials only expose their communities to debt which can be repaid in a severe recession, then [only] needed public improvements will [] be built when economic expansion dictates new schools, highways, etc.

    >> Similarly, if lenders [don't ignore] worse case scenarios to predict future repayment ability, then credit will probably not [be lent so recklessly].

    Fixed that for you.

  12. Jim67545 says:

    to wunsacon:
    Thanks for the correction. However, the problem with lending, investing, and a whole host of other things is an inability to predict the future. What is “worse case?” For that matter, knowing what we know now, have we yet seen “worse case?”
    If a community (in 2007) has had growth for 10+ years in a suburban area, housing being developed, etc., and they have a need to expand roads, extend infrastructure and build schools and playgrounds, and they borrow money for that purpose based on 30+ years of growing real estate tax revenue, should they be faulted because they did not anticipate the subsequent virtual shutdown in new housing construction (which may have made the improvements unnecessary) or the freezing/decline in tax revenues? How would a lender, at that point in time, have predicted this?
    Yes, some did predict the recession but when sitting across from the Mayor or County Commissioner, can one ignore a tangible prosperous past and deny it based on an intangible debatable prediction?
    We cannot look at this in hindsight.

  13. Freude Bud says:

    Tyler Caine has confused primary energy with electricity production. Primary energy is converted into electricity and is measured in terms of heat, and his exegesis is correct in terms of primary energy. Of course, the problem is turning the primary energy into electricity.

    Nuclear produced 257,741million KWhs, renewables, including hydro, generated 178,099 KWhs from January – April 2011. For January – March 2011 nuclear generated 203,194 KWhs, renewables, including hydro, generated 128,605 KWhs.