Today’s reading list:

• Bernanke’s Interest-Rate Timeframe Draws Most Negative Votes in 18 Years (Bloomberg) see also Why Fed Move May Have Pushed Investors Into Stocks (WSJ)
Mark Cuban: What Business is Wall Street In ? (Maverick)
• Earnings: The Last Economic Bright Spot (Slate)
• S&P balks at SEC proposal to reveal rating errors (Reuters)
• How to ‘fix’ a market (NY Post)
• The Danger to China’s Economy (The Diplomat)
• Global Economic Downturn: A Crisis of Political Economy (Stratfor) see also The U.S. Economy Feels the Pull of Gravity (Businessweek)
• London riots: the underclass lashes out (Telegraph)
• Yahoo Discount Means U.S. Web Portal Free in Takeover: Real M&A (Bloomberg)
• God’s Blog (New Yorker)

What are you reading?


And in light of the Groupon filing:

Wuerker via Politico

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.

22 Responses to “10 Mid-Week Reads”

  1. machinehead says:

    Stratfor’s analysis (‘Global Economic Downturn’) is mercifully free of the tiresome left-right, lib-con, Dem-Rep baiting that mars most commentary these days. But Stratfor alludes to it:

    ‘The elites become delegitimized and all that there is to replace them is a deeply divided and hostile force, united in hostility to the elites but without any coherent ideology of its own. In the United States this would lead to paralysis.

    Substitute ‘has led’ for ‘would lead,’ and you’ve got an up-to-date assessment of the US social pathology.

  2. Junior says:

    How about this unfathomably stupid piece of ‘news analysis’?

  3. Mike in Nola says:

    Cuban agains shows himself one of the most perceptive guys around. Which is what makes him so unpopular with the establishment.

    However, I do disagree on Australia. It is the US, circa 2006-7. But he is probably smart enough to profit from it.

    Every time I hear someone blathering about Wall Street being the means for companies to raise captital, I want to strangle that person.

  4. Mike in Nola says:

    @junior – how about a mediocre (actually bad) one-term president?

  5. brasilianista says:

    An eye-opening clip from a 24-year-old writer/blogger who’s watching the LONDON RIOTS from her window:

    In one NBC report, a young man in Tottenham was asked if rioting really achieved anything:

    “Yes,” said the young man. “You wouldn’t be talking to me now if we didn’t riot, would you? Two months ago we marched to Scotland Yard, more than 2,000 of us, all blacks, and it was peaceful and calm and you know what? Not a word in the press. Last night, a bit of rioting and looting and look around you.”

    Eavesdropping from among the onlookers, I looked around. A dozen TV crews and newspaper reporters interviewing the young men everywhere.

    There are communities all over the country that nobody paid attention to unless there had recently been a riot or a murdered child. Well, they’re paying attention now.

    Blogger Laurie Penny is a 24-year-old Londonite who writes for New Statesman, The Guardian and others. This piece was originally posted to her blog, and is licensed under a Creative Commons Attribution-Non-Commercial 2.0 UK: England & Wales License.

    And may I add, “No shit!” And for those in the GOP who long for and fight for similarly dismal levels of social services and high levels of inequality in the US, this scenario could be what you too may be enjoying before you know it.

  6. AHodge says:

    i’m reading your stuff esp Cuban right on target
    “Wall Street has nothing to do with creating capital for businesses, its original goal”
    you create capital
    or should do that to get the future cash flow of the business matching savers w investors
    those flows are cyclical and a little risky but pretty safe and boring
    so folks go for levered, the residual equity is much more risky,
    the huge fixed income is
    1 not really fixed against the cyclical cashflow
    2 further levered by folks who think its “safe”
    then add on all the other lying accounting complex product fake insurance, front runnin traders and bankers that dont even bank anymore. fly the flag and tell everyone you are essential

  7. A says:

    Sadly, the political cartoon and the Times article on the ‘underclass’ hit too close to the bone of truth.
    Bought-and-paid-for politicians logically focus on their buyers, who expect a return on their investment. In other words, the elite government focuses on the elites that fund them, rather than the public that puts them in office. Lets hope there is not the same UK reaction stateside, to the embarrassing antics of a Wall Street white house and a ‘gone to lunch’ president.

  8. Junior says:

    Mike in Nola:

    No doubt he’s been mediocre on many fronts and may be a one-term president, but I felt that the article was particularly bad analysis. It’s just more false narrative: that his only option is to cut long-term entitlements. (Focusing on social security in particular is rearranging deck chairs on the Titanic.)

    His only choice is to try and manufacture employment in the short term, or at least look like he cares.

  9. alnval says:

    Really stimulated by the Telegraph piece. (1) We don’t get that kind of clear writing, reporting and analysis in our MSM. The writer articulates a point of view with data to support it. None of this “fair and balanced” nonsense. (2) The parallel to our situation in the US is startling. Anybody care to speculate on what will trigger a similar response in the US?

  10. Petey Wheatstraw says:


    Markets getting whipsawed. Not a confidence building situation. Then again, after yesterday’s rally from the depths, no one rational dares make a bet for or against. It’s like we’re in a submarine and everyone’s holding their breath and watching the depth/pressure gauge.

  11. GeorgeBurnsWasRight says:


    As a long-time reader of your blog, today’s reading list was one of your best.


  12. philipat says:

    What a truly sad cartoon. Everyone knows this is true but either won’t or can’t do anything to change it. Sad for US “Democracy”.

  13. Chad says:

    Cuban nails it in his blog post.

  14. Junior says:

    Mike in Nola:

    My problem with the article is that it is a poor analysis of Obama’s options. By tackling Social Security in particular, he’s shuffling deck chairs (both the economy’s and his re-election). I would argue that’s the one thing he doesn’t need to worry about.

    He may not be able to create jobs, but he at least needs to look like he cares while simultaneously letting his opponents demonstrate that they don’t.

  15. JimInMissoula says:

    Haven’t read anything by Cuban before, but he pretty much summarizes my view of how Wall St. works these days.

  16. red eye repub says:

    Lol! That cartoon is funny.

    But it would actually have some legitimacy if there were additional groupon ads that said:

    Buy! Salary, Pension, and Benefit increases for public sector union employees!

    Buy! Subsidized healthcare so your neighbor pays the bill!

    Buy! Subsidies to keep real estate expensive to prevent new buyers from getting a deal!

  17. VennData says:

    End of the road for hedge funds

    “…There is, however, a bubble in the world economy. Anecdotal evidence points to hedge funds as the bubble that has popped…”

    “…Hedge funds can’t earn the 15%-20% returns they promise investors in a world of 3% bond yields and 2% gross domestic product (GDP) growth. Investors desperate for higher returns, including pension funds, returned to the hedges during 2010 and 2011, and are now suffering spasms of buyers’ remorse.
    That prompted an across-the-board liquidation of all assets, including commodities and emerging market equities most favored by the hedges. The nearly $2.6 trillion of hedge fund assets constitute the system’s only real bubble: too much money chasing too few returns, with a lot of fingers on the recall button. As of May, equity hedge funds with $1.25 trillion in assets had strongly net bullish positions…”

  18. DiggidyDan says:

    companion piece that qoutes the guardian article you posted

  19. streeteye says:

    CAPTCHAs that won’t let you comment if you’re an idiot
    complete this sentence – ‘The institution that contributed the most to the financial crisis was CRA/Fannie/the Fed’

    Also – Part 2 of Jeremy Grantham’s quarterly missive – not sure if it was mentioned before but it’s a doozy