Interesting day, to say the least. Here is my reading for the train ride home:

Fed paper: Chance of 2012 U.S. recession tops 50% (Reuters) see also The Federal Reserve’s Dual Mandate (Fed Chicago)
• The euro is dead. Long live the euro. (Market Watch)
• AIG Resists ‘Back-Door Bailout’ for Banks in Obama Mortgage-Refi Proposal (Bloomberg) see also Haldane says banks still too much of a black box (Reuters)
• Krugman vs Summers: The debate (Reuters)
• Global X Social Media ETF Goes Live (Index Universe)
• Ethically Challenged Congress Needs Law or Code Banning Insider Trading (Daily Beast) see also Spencer Bachus’ real sin isn’t insider trading (Salon)
• The Inefficiency of Local Food (Freakonomics)
• These May Be The Droids Farmers Are Looking For (Wired)
• Key To Long-Term Dominance? Marketing Fades, But Product Always Lasts (Fast CoDesign)
• Elizabeth Warren hit airwaves with first TV ad (Washington Post)

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.

22 Responses to “10 Tuesday PM Reads”

  1. jbminn says:

    This week? Two new ones:

    - “I Was Blind But Now I See” – James Altucher
    +
    - “Everything Is Obvious… Once You Know the Answer” – Duncan Watts

  2. Moss says:

    Great line from Fisher.
    http://www.bloomberg.com/news/2011-11-15/fed-s-fisher-regulators-should-break-up-behemoth-banks.html

    “Sustaining too-big-to-fail-ism and maintaining the cocoon of protection of SIFIs is counterproductive, expensive and socially questionable,” Fisher said. “Perhaps the financial equivalent of irreversible lap-band or gastric bypass surgery is the only way to treat the pathology of financial obesity, contain the relentless expansion of these banks and downsize them to manageable proportions.”

  3. mathman,

    with this..

    DARPA Developing Fast Running Robot
    November 15th, 2011

    Via: Wired:

    Today’s robots move about as fast as your grandma’s morning mall-walking group. Tomorrow’s robots will move as fast as Usain Bolt — all thanks to limbs modeled on ostrich legs.

    That’s exactly the point, according to the Darpa-funded researchers behind a collaborative effort underway at MIT and the Florida Institute of Human and Machine Cognition (IHMC). Only one year into a four-year research contract, the team is showing off stunning results that are expected to produce the fastest, most agile ‘bot ever. He’s called FastRunner, and he’ll zip along at 10 times the speed of a standard mobile robot, which clocks a mere 3 miles per hour.

    “We’re using principles found in biology to build efficiency and speed right into the robot,” Johnny Godowski, a research associate at IHMC, tells Danger Room. “And we’re confident that this will open up the possibility for humanoid robots that are useful in all sorts of situations — military for one, but also fire rescues or natural disasters, for example.”

    Already, the team has developed a simulation of FastRunner’s eventual capabilities and a full test leg that can zip along at 27 miles an hour — the same pace as Usain Bolt’s record-setting 2009 sprint. Eventually, they hope to see the ‘bot hit speeds in excess of “30, 40, 50 miles an hour,” according to Dr. Russ Tedrake at MIT.”

    feel free to leave the http://cryptogon.com/?p=25988 link..

    then, maybe, others will see ‘stories’, like…

    Britain: CCTV Taxi Plan ‘A Staggering Invasion of Privacy’
    November 15th, 2011

    Via: Independent:

    Plans to fit all taxis operating in the city of Oxford with audio recording devices have been branded a “staggering invasion of privacy” prompting calls for the Information Commissioner’s Office (ICO) to investigate how widespread the use of microphones on public transport has become.
    ~~~
    Japan: Radioactive Contamination in Soil Will Severely Impair Food Production
    November 15th, 2011

    Via: Telegraph:

    Farmland in parts of Japan is no longer safe because of high levels of radiation in the soil, scientists have warned, as the country struggles to recover from the Fukushima atomic disaster.
    ~~

    as well, while they’re there..
    http://cryptogon.com/

  4. gman says:

    Read Krugmans The Return of Depression Economics and then compare to the sunshine Summers has been peddling! Track records count for nothing..if you can get a microphone! Salmon said it was draw..nothing to see here.

  5. Doofus says:

    An interesting counterpoint to the Wired piece on agricultural robots is this article from Bloomberg Businessweek, Why Americans Won’t Do Dirty Jobs.

    Alabama’s anti-immigration law has drained the state of a critical resource, and Alabama farms are now suffering millions of dollars of losses. Too many “native” Americans are too lazy to do the back-breaking work required to manually harvest certain crops, AND farmers are not paying workers enough.

    In their wake are thousands of vacant positions and hundreds of angry business owners staring at unpicked tomatoes, uncleaned fish, and unmade beds. “Somebody has to figure this out. The immigrants aren’t coming back to Alabama—they’re gone,” Rhodes says. “I have 158 jobs, and I need to give them to somebody.”

    There’s no shortage of people he could give those jobs to. In Alabama, some 211,000 people are out of work. In rural Perry County, where Harvest Select is located, the unemployment rate is 18.2 percent, twice the national average. One of the big selling points of the immigration law was that it would free up jobs that Republican Governor Robert Bentley said immigrants had stolen from recession-battered Americans. Yet native Alabamians have not come running to fill these newly liberated positions. Many employers think the law is ludicrous and fought to stop it. Immigrants aren’t stealing anything from anyone, they say. Businesses turned to foreign labor only because they couldn’t find enough Americans to take the work they were offering.

    At a moment when the country is relentless focused on unemployment, there are still jobs that often go unfilled. These are difficult, dirty, exhausting jobs that, for previous generations, were the first rickety step on the ladder to prosperity. They still are—just not for Americans.

    For decades many of Alabama’s industries have benefited from a compliant foreign workforce and a state government that largely looked the other way on wages, working conditions, and immigration status. With so many foreign workers now effectively banished from the work pool and jobs sitting empty, businesses must contend with American workers who have higher expectations for themselves and their employers—even in a terrible economy where work is hard to find. “I don’t consider this a labor shortage,” says Tom Surtees, Alabama’s director of industrial relations, himself the possessor of a job few would want: calming business owners who have seen their employees vanish. “We’re transitioning from a business model. Whether an employer in agriculture used migrant workers, or whether it’s another industry that used illegal immigrants, they had a business model and that business model is going to have to change.”

    It will be years before the agri-droids are skilled enough to work in the fields. Until then, prices set by labor in this field (intended) should rise, immigrant or no.

  6. Mike in Nola says:

    Google started Google+ for businesses. Looks like someone other than Bank of America registered the Bank of America page. Pretty funny

    http://idealab.talkingpointsmemo.com/2011/11/bank-of-americas-google-plus-page-appears-brandjacked.php

    It’s not all fixed yet. There’s a message about what happens to OWS protestors who come in to close their accounts. And various other snarky posts.

    https://plus.google.com/s/bank%20of%20america#s/bank%20of%20america/posts

  7. Jim67545 says:

    On Ethically Challenged Congress.. the 60 Minutes on Sunday lit a bright fire under the subject. For those who did not see it: http://www.cbsnews.com/video/watch/?id=7388130n
    The portion on Nancy Pelosci (sp?) is really interesting. Watch her sweat.

    ~~~

    BR: Note we posted this in the Video section Monday
    http://www.ritholtz.com/blog/2011/11/congress-trading-stock-on-inside-information/

  8. Bill in SF says:

    After last night’s Munk debate, Paul Krugman was overheard saying;

    “Yes, I was horsing around with David Rosenberg, but I did not touch Larry Summers inappropriately.”

    http://krugman.blogs.nytimes.com/2011/11/15/larry-paul-dave-ian/?smid=tw-NytimesKrugman&seid=auto

  9. Union Agitator says:

    As far as Georgia and Alabama not being able to find people to work in their fields, barring illegals, remember both of those states are so-called “right to work states”, places where they’ve made it nearly impossible to organize a union. Just take a look at where all the new car factories have been built.
    I suppose we’ve all forgotten that the most prosperous period in American history was the high-water mark for union membership. Now we’re being told that the country in on the verge of ruin because old people want to go see a doctor.
    There was once a famous exchange between Henry Ford and a union leader. Ford said, “One day all this work will be done by robots.” the reply? “Then who is going to buy your cars?”

  10. Market Panic says:

    The Libor-OIS represents the angst banks feel about lending to each other (anxiety about bank exposure to the Eurozone)
    http://www.bloomberg.com/apps/quote?ticker=.LOIS3:IND

    These are signs that not all is well, despite the stupid dog stock market trying to chase end-of-the-year return on capital performance (and ignoring the gigantic return of capital risks).

    Also, Italy Govt Bonds 10 Year Gross Yield is 7.07%
    http://www.bloomberg.com/apps/quote?ticker=GBTPGR10:IND#

    In addition, Spain was unable to borrow the maximum 3.5B euros it wished to do — and investors ended up demanding the Spanish government to pay an expensive 5% interest rate for supposedly risk-free 12-month loans. Belgium too didn’t sell the maximum debt on offer.

    But perhaps the most important — and worrying — is that the gap between France and Germany borrowing costs widened to a record high levels. France is a main guarantor of EFSF that suppose to bailout PIIGS, Italy and Spain, and now France, Belgium, Austria and the Netherlands (France to bailout France and everyone else).

    Austria Has a Déjà Vu Moment
    http://blogs.wsj.com/source/2011/11/15/austria-has-a-deja-vu-moment/

  11. maddog2020 says:

    Thanks for the lins, MEH. One could go on and on about the ‘wonders’ of our efficient industrial food production system. Thanks, but no thanks. I’ll stick with my local food. I know my ground beef (we buy by the side) doesn’t contain pink slime:
    (original source NYT)

    http://scienceblogs.com/mikethemadbiologist/2010/01/would_you_like_ammonia-laced_p.php

    It’s funny that on that Freakonomics page I found this link:

    http://www.foodsafetynews.com/2011/11/tests-show-most-store-honey-isnt-honey/

  12. Market Panic says:

    Kyle Bass: Germany has had Enough of ‘Mexican Standoff’ with ‘Profligate Idiots’ of Southern Europe
    http://news.bbc.co.uk/2/hi/programmes/hardtalk/9639507.stm

  13. ottnott says:

    I’m with Mark Hoffer – that Freakonomics piece was dreadful.

    Start with the author’s definition:
    “However, we can imagine what a “pseudo-locavore” farming system would look like—one in which each state that presently produces a crop commercially must grow a share proportional to its population relative to all producers of the crop.”

    WTF does that have to do with local food?

    Next, consider what the author chooses as his big examples:
    “My conservative estimates are that under the pseudo-locavore system, corn acreage increases 27 percent or 22 million acres, and soybean acres increase 18 percent or 14 million acres. Fertilizer use would increase at least 35 percent for corn, and 54 percent for soybeans, while fuel use would climb 23 percent and 34 percent, for corn and soybeans, respectively. Chemical demand would grow 23 percent and 20 percent for the two crops, respectively.”

    Corn and soybeans serve more as industrial raw materials than as food. People are buying local fresh sweet corn, not raw materials. Did you eat 2100 lbs of corn over the past year? That was your share of US production. It is asinine to suggest that “local food” means growing all that corn locally.

    Your share of the soybean crop was more than 600 lbs. Eat up.

    The Freakonomics author has done a typical hack economics “debunking”. Create a simple model, throw numbers into it, avoid common sense, and crank out the results. Hackery.

    People who choose local food tend to choose foods that do well in local fields. It takes an awesome level of hackery to overlook that obvious fact, but Freakonomics is up to it.

  14. ottnott says:

    @MarketPanic:

    If he views the Southern European borrowers as “profligate idiots”, what conclusion should we draw about the banks who lent the money?

    Which parties failed and should be wiped out?

  15. JerseyCynic says:

    I approached the local politicians running for office outside the polls last week. (I could almost hear them chanting “Here comes that crank” — I lOVE to get them going!) I asked them if any were familiar with geoengineering — i.e. chemtrails. “LOL!! ha ha ha – still with those conspiracy theories, Barb?” Noooooo — I just look up a lot! FU

    “silly you, those are just contrails — exhaust from planes”

    Boy did I freak them out. Just so happened that the sky was breaking out in crisscrosses all over the place that morning. There were also visible planes overhead that were not emitting “contrails” . One of them said she’d look into it, the other dazed and confused politicians just stood there — no comments at all.

    I wonder if sending them this recent piece via infowars will confirm their opinion of me. I’m always hesitant to use Alex Jones as my source.

    http://theintelhub.com/2011/11/14/geoengineering-our-environment-under-attack/

    I live in Hartford County and this has become a very frequent event over my skies. I observe an all encompassing beautiful blue sky — not a cloud to be seen, then I see a few “trails” and within the hour — no more blue sky.

  16. mathman says:

    Hey Mark – i figured that just about everyone here checks out cryptogon now and then, but will do.

    JerseyCynic: Oh, wait til you see all the HAARP rings and solar squares (and the resulting severe weather being generated by ?) at dutchsinse’s youtube website:

    http://www.youtube.com/user/dutchsinse#p/u/0/aEDfGPOxWLM

    He also keeps up with global earthquakes (even those caused by fracking) and volcanic activity as well as any other severe weather anywhere.

  17. JerseyCynic says:

    no — thanks anyway, mathman

    you might be interested in this site though — yeah, he’s selling a book, but he tries to keep a sense of calm about it (just enough though!) . Daily “earth” events around the globe http://theextinctionprotocol.wordpress.com/

    Any person on a quest for the truth will explore ALL theories.

    http://www.sodahead.com/united-states/why-government-shills-intellectual-cowards-love-the-term-conspiracy-theory/blog-276279/