My early morning reading:

• The Bullish Stars Are Aligned (The Street)
• Italia trio:
…..-Italian Vote Will Test Berlusconi’s Majority (Bloomberg)
…..-Italy Nears Tipping Point as Its Bond Yields Climb (WSJ)
…..-Stocks, U.S. Futures Rise on Earnings Before Italy Vote; Commodities Gain (Bloomberg)
• Derivatives Tide Rises at Big Banks (WSJ)
• Wall St. Pay Expected to Fall 20% to 30% (DealBook)
• Asia twofer:
…..-Hong Kong Entered Recession in Last Quarter, Most Accurate Forecaster Says (Bloomberg)
…..-China Credit Squeeze Prompts Suicides (Bloomberg)
• Its Leader on Sidelines, Regulator Faces Biggest Test in MF Global (DealBook)
• Bond Investors Vote for Safety First (WSJ)
• US wealth gap between young and old is widest ever (Boston)
Malcolm Gladwell: Steve Jobs, The Tweaker (New Yorker)
• New movie ‘Margin Call’ called best Wall Street film, ever (with video) (Public Radio International)

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 Tueday AM Reads”

  1. farmera1 says:

    Really interesting video on why the west prospered while much of the world languished for 500 years or so. The basic idea is the quality of laws and institutions.

    Hint: One of the six reasons is well defined property rights and the rule of law.

    http://www.huffingtonpost.com/2011/11/06/niall-ferguson-ted-talk_n_1078637.html

    ~~~

    BR Read Hernando de Soto:

    Foreclosure Fraud Reveals Structural & Legal Crisis
    (October 5th, 2010)
    Why Foreclosure Fraud Is So Dangerous to Property Rights (October 12th, 2010)
    The Destruction of Economic Facts (April 30th, 2011)

  2. farmera1 says:

    Oh, oh banks are running amuck with derivatives again.

    http://online.wsj.com/article/SB10001424052970204554204577024344280301590.html

    “Huge numbers can be scary, especially when it comes to derivatives. So investors should take a seat before reading third-quarter securities filings from some of the biggest U.S. banks.

    During the period, gross derivatives assets jumped 52% at Bank of America from the previous quarter, to $2.17 trillion. At J.P. Morgan Chase, they rose 47%, to $2.04 trillion. And at Citigroup, they increased 31%, to about $1.1 trillion.

    At J.P. Morgan, this net figure, which is what goes into the calculation of total assets shown on the face of the balance sheet, was $109 billion. It was about $79 billion at BofA and $60.3 billion at Citi. It isn’t until banks release quarterly securities filings, usually a few weeks after they post earnings, that investors see the footnote disclosures detailing the gross positions.”

    But you will never know this looking at financial reports (balance sheets) since derivatives are netted, the net numbers are what you see on the financial reports. Neat little trick. (Wonder how that worked out for Greece????)

    ~~~

    BR: Thats read #3
    • Derivatives Tide Rises at Big Banks (WSJ)

  3. rktbrkr says:

    Hong Kong, the canary in the Chinese cage.

    How many times has the Euro crisis been solved now? How many govs have turned over now, ireland, port,Greece and Italy on deck, guess they’ll have to loop back to Spain. I think there will be multiple gov changes in some of these countries. Frau Merkel will have more and more political battles as the pricetag keeps increasing

  4. JSC says:

    forget all the articles, that is the best Dali Lama quote ever. Thanks for that

  5. Molesworth says:

    http://www.bythom.com/

    Not a Good Day for Photography Companies
    Nov 7 (news)–Kodak today sold its sensor business to a company that buys distressed assets, Platinum Equity. The amount of sale was not disclosed, but Kodak last week was looking for US$500 million in financing in order to continue operations. Ironically, Kodak announced some new CCDs today (e.g., 16mp full frame with some unique properties) but that news got buried by the sale announcement.

    Meanwhile, the Olympus scandal took a dark, nasty twist when the company today announced that the US$1.3 billion in deals that were challenged by the new and now former CEO were actually the result of funneling money to cover losses on security investments the company had made as much as 20 years ago. Essentially, Olympus has now admitted that they made false entries that cover an almost 20-year accounting period, which is simply stunning, both in size and scope. The stock immediately plummetted further–now losing almost 70% its value from before the scandal started to unfold–putting Olympus into the possibility of being delisted on the Nikkei, or at least suspended for trading.

    One very real issue for Olympus is whether there is anyone in higher management that can now escape blame. If this was done with board knowledge, that’s bad. If it was done without board knowledge, that’s worse. The way Japanese company boards are made is almost exclusively from inside executives, including the current CEO (third this month), who was on the board when these deals were done.

    Bottom line: two of photography’s long-term players are in dire straights at the moment.

  6. Grego says:

    Forget that nonsense about UFOs and legalization of marijuana. Petition your government to, well, read it yourself:

    https://wwws.whitehouse.gov/petitions#!/petition/we-demand-vapid-condescending-meaningless-politically-safe-response-petition/gCZfn86x

  7. mathman says:

    Good ‘n, Molesworth!:

    http://www.youtube.com/watch?v=dlPjxz4LGak

    Dire Straits, Money for Nothin’

  8. ToNYC says:

    “The Gurdjieff Work”
    by Kathleen Riordan Speeth, Foreword by Clauduio Naranjo.

  9. NoKidding says:

    Dalai Lama has the Eagles on his iPod.

  10. Petey Wheatstraw says:

    Molesworth:

    I’ve always thought that Nikon should buy Oly (or Canon, but I don’t think that’s as good a fit). I wonder if Nikon would make a move for Oly if the price was right (and only if they can get Oly’s patents anti-shake and dust removal — Oly’s is better than Nikon — and glass manufacturing). Oly’s medical imaging unit is responsible for many of the innovations incorporated into their photo gear — all of it really outside Nikon’s thought/development process.

    As for Kodak, they still make one of the best imaging sensors around (I have an Oly e330 with a 7 MP Kodak CCD sensor — nothing else I’ve shot comes close in pixel to pixel sweetness, for lack of a better description). Too bad they’re on the skids.

  11. Kiers says:

    on that derivatives article:

    “U.S. banks argue that including the net assets and liabilities on the face of the balance sheet better reflects their true risk”

    You mean like MF Global (Corzine) “netted”/hedged a short French bond against long PIIGS bonds? How great was that. I wish i could “net” like that at the supermarket: two apples reduce my oranges by 3. The Chicken drumsticks produce half off the lamb. The frozen pizza doubles my cardiac bill so on and so forth. Great stuff.

    These banksters have heeded NOTHING from 2007. NOTHING: step on the risk. wait. get lucky. or bail out.