Here is what I am reading today:

• Our Sputtering Economy, by the Numbers (Pro Publica)
• For states, debt deal is short on details (Stateline)
• More people borrowing from 401(k) accounts (McClatchy)
• AAA Rating Is a Rarity in Business (NYT) see also Moody’s Affirms U.S. Rating, Warns of Downgrades (Bloomberg)
• The wilful ignorance that has dragged the US to the brink (The Independent)
• Who gains from debt deal? The Pentagon, for one (McClatchy)
• The economics of humiliation (Market Place)
• Obama Bonds Proved World Beaters in Game of Chicken on Debt (Bloomberg)
• What The NYC Startup World Needs (And Doesn’t Need) (Chris Dixon’s Blog)
• Alternative TV Opening Credits (Short List)

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.

13 Responses to “10 Wednesday AM Reads”

  1. Petey Wheatstraw says:

    The cartoon is right. The debt ceiling Kabuki was a PR blunder of epic proportions. Good will is a valuable asset. We just threw ours out the window.

  2. streeteye says:

    Fukushima apparently leaking more radiation than ever.

    Looks like a good long read from Vanity fair on how RSA was hacked, presumably by Chinese

  3. machinehead says:

    From the McClatchy article about the debt deal and the Pentagon:

    Rather than cutting $400 billion in defense spending through 2023, as President Barack Obama had proposed in April, the current debt proposal trims $350 billion through 2024, effectively giving the Pentagon $50 billion more than it had been expecting over the next decade.

    Under the current debt deal the department would have to reduce its budget by $600 billion over the next decade if Congress can’t agree on the deficit-reduction proposals of a new 12-member, bipartisan legislative committee that’ll be tasked with recommending further spending cuts.

    This is utter nonsense from beginning to end. In standard D.C. flimflam fashion, the ‘cuts’ are made from an escalated baseline, such that absolute spending continues to grow at a slower rate.

    It’s as if a million-dollar-a-year business owner programmed 15% annual raises for himself, then cut the boosts to 5% in a crisis, and told employees, ‘I’m taking a million-dollar pay cut over the next 10 years.’ Outraged employees could quite properly punch his lying teeth in.

    Government accounting is a rancid scandal. CONgress still uses cash basis budgeting, despite the Treasury’s annual publication of an accrual-based financial statement (which of course shows deeper deficits and yawning negative net worth). And the nitwit Mainstream Media mindlessly repeats these absurdities. Die, MSM, die!

  4. cyaker says:

    Michael Hudson has an interesting post about what just happened in Washington and what it means for the future
    The Debt Ceiling Debate that Didn’t Happen

    By Michael Hudson*

  5. Emerging world buys $10 billion in gold as West wobbles

    LONDON – Central banks of emerging market countries such as Korea and Thailand have added more than $10 billion of gold to their reserves this year in a sign of waning faith in the West’s benchmark bonds and currencies like the dollar and the euro.

    International Monetary Fund data for June on Wednesday showed Thailand bought gold for the second time this year, raising its reserves by nearly 19 tonnes to over 127 tonnes, while Russia bought another 5.85 tonnes, bringing its reserves to 836.7 tonnes, the world’s eighth largest official stash of the metal.

    So far in 2011, emerging market central banks have bought nearly 180 tonnes of gold, more than double the roughly 73 tonnes purchased by central banks globally in the whole of 2010.

    The spot price of gold has risen by more than 17 per cent this year to a record $1,672.65 an ounce, driven chiefly by investor concerns over the impact on the developed world’s economy of its debt burdens and sluggish growth.

    Mexico has been the largest buyer of gold in the year to date, with $5.3 billion worth of purchases, or 98 tonnes of gold, followed by Russia, which has bought 48 tonnes, worth $2.6 billion at current prices.

    Earlier this week, Korea confirmed it had bought 25 tonnes of gold in June and July.

    Gold is such a tiny market that it won’t take much of a shift to skyrocket the price. if China and Russia really do want to protest the ‘reckless’ borrowing of the US, jumping on the gold market might be a great move

  6. Lost Alfred Hitchcock film found in New Zealand
    The only known copy of the earliest film made by Alfred Hitchcock has turned up in New Zealand.

  7. James says:

    This is utter nonsense from beginning to end. In standard D.C. flimflam fashion, the ‘cuts’ are made from an escalated baseline, such that absolute spending continues to grow at a slower rate.

    Spot on. The accumulated “cuts” over a ten year span are derived from a reduction from a baseline number for each year. Those headlines that talk up 900 billion cuts in discretionary spending, including military spending, in the first phase of the recent “deal” use this methodology. All well and good, except this isn’t what people think the “cuts” amount to when they read these numbers. The actual cuts based on spending levels today are considerably smaller. The point here is not to argue the merit of cuts . . . but the double-speak used in the methodology.

    Note to McClatchy or anyone else who provides numbers: provide your sources.

  8. JerseyCynic says:


    Coughed up a lougie on that one


  9. Julia Chestnut says:

    These cartoons you keep finding are just scalpels. Keep ‘em coming.

  10. gordo365 says:

    JerseyCynic Says:

    This was funny. I especially like the “Do we get a deficit reduction check in the mail?”

    I can imaging the Onion piece on the new “Cash for debtors” program as part of QE2.5 and TARP 4.2.