Afternoon LIRR reading:

Nobel economist: Euro zone needs own bonds and tax  (Reuters) see also Downgrade Threat Irks Governments (WSJ)
• Tiny Tax on Financial Trades Gains Advocates (NYT)
• Don’t get mad at Wall Street, get even (Market Watch)
• Municipal Finance in the Face of Falling Property Values (Cleveland Fed)
• Swaps & Derivatives Traders in a Tizzy (Court House News)
• Raising Taxes on the Rich: Not Whether, but How (Economix) see also Tax Rates, Inequality and the 1% (WSJ)
• We Still Shop at the Mall for a Bunch of Reasons (Atlantic Wire)
• Derek Boogaard: A Brain ‘Going Bad’ (NYT)
• Newt’s second act (NY Post) see also Obama Could Win if GOP Blocks Payroll Tax Cut (The Fiscal Times)
• The 45 Most Powerful Images Of 2011 (Buzz Feed)

What are you reading?



via WSJ

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 Tuesday PM Reads”

  1. JerseyCynic says:

    Obama’s speech today in Texas, I mean KANSAS…

    trickle-down economics does not work

    “The market will take care of everything,” they tell us. If only we cut more regulations and cut more taxes – especially for the wealthy – our economy will grow stronger. Sure, there will be winners and losers. But if the winners do really well, jobs and prosperity will eventually trickle down to everyone else. And even if prosperity doesn’t trickle down, they argue, that’s the price of liberty.

    It’s a simple theory – one that speaks to our rugged individualism and healthy skepticism of too much government. It fits well on a bumper sticker. Here’s the problem: It doesn’t work. It’s never worked. It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible post-war boom of the 50s and 60s. And it didn’t work when we tried it during the last decade.”

    Now, if he could just end with “Comfortably Numb” (best description of Americans that I’ve ever read — THANK YOU RALEIGHWOOD) instead of this god bless america BS, I might take him seriously.

    “Well into our third century as a nation, we have grown and changed in many ways since Roosevelt’s time. The world is faster. The playing field is larger. The challenges are more complex.
    But what hasn’t changed – what can never change – are the values that got us this far. We still have a stake in each other’s success. We still believe that this should be a place where you can make it if you try. And we still believe, in the words of the man who called for a New Nationalism all those years ago, “The fundamental rule in our national life – the rule which underlies all others – is that, on the whole, and in the long run, we shall go up or down together.”
    I believe America is on its way up. Thank you, God bless you, and may God bless the United States of America.”

    fool speech here —
    (no hope, but a few changes — 3 in the last paragraph)

  2. DSS10 says:

    Why is Estonia at AA-?

    Their debt to GDP ratio is ~ 6.7% (2010) which is the lowest in the European region.

    And no, I am not Estonian…..

  3. mathman says:

    The dominos are beginning to fall. Won’t be too much longer before this happens here too.,1518,802051,00.html
    Anxious Greeks Emptying Their Bank Accounts
    “Many Greeks are draining their savings accounts because they are out of work, face rising taxes or are afraid the country will be forced to leave the euro zone. By withdrawing money, they are forcing banks to scale back their lending — and are inadvertently making the recession even worse.”
    A Reality Check on Oil Supply for Newt Gingrich
    “During the CNN Republican presidential debate Tuesday, November 23, Newt Gingrich made statements about U.S. potential oil supply that reveal either total ignorance of energy or supremely dangerous demagoguery. He stated that the United States could discover and produce enough oil in 2012 to cause a worldwide oil price collapse.”
    Marc Faber, Jim Rogers Clash Over China and Commodities, Agree on Gold
    “Investment gurus Jim Rogers and Marc Faber agree to various degrees on many issues but the one thing separating them this week is the future direction of the Chinese economy and if this could have a devastating impact on commodities around the world.

    Both Faber and Rogers have been warning about the effects of monetary and fiscal policies on the US economy, since the recent rally has been mostly based on printed money, a kind of ‘reverse Robin Hood policy’ of governments, to steal from the peasants to give to the rich.

    As with Faber, Rogers is mostly to be seen being interviewed on CNBC and Bloomberg Asia or Europe as they both live in Asia now and since their views are to put it mildly, somewhat negative on the prospects of a sustainable US recovery.”
    The Pentagon Is Offering Free Military Hardware To Every Police Department In The U.S.
    from the article:
    “Benjamin Carlson at The Daily reports on a little known endeavor called the “1033 Program” that gave more than $500 million of military gear to US police in 2011 alone.

    1033 was passed by Congress in 1997 to help law-enforcement fight terrorism and drugs, but despite a 40 year low in violent crime, police are snapping up hardware like never before. While this years staggering take topped the charts, next years orders are up 400 percent over the same period.”

    Gee, ya think this stuff is related?

  4. Sechel says:

    “Tiny Tax” is a terrible idea. We already tax trades via opaque financial markets and allowing High Frequency traders to front run pensions. All a tax does is reduce the ability of pensions and insurance companies to fund their obligations. And the process this “tax” creates a perverse incentive for the gov’t to want to perpetuate the current set-up even more. Gov’t should work to increase transparency and reduce costs in the financial markets, not increase them.


    BR: A tiny tax would crush HFT and would be negligible to everyone else.

  5. Lyle says:

    For a buy and hold investor the tax would be almost invisible, making the gain on sale a bit less as the basis would be adjusted higher, and the proceeds of the sale a bit lower. So that for a long term holding the effective tax would be 85% of the nominal value as the cap gains tax covers the rest, and for short term gains a max of 65%. I agree it would likely hame those who are primarily traders and in particular HFT traders, but do they really do the economy any good or help the mission of the capital markets to allocate capital? I would say no, they are just the casino run amok. In any case in the bad old days before de-control of commission they were a lot higher than the amounts of the tax and the markets still functioned, all be it in $.125 increments. (Which is partly how wall street made its money back then). You did not have some of the casino operations however.

  6. gman says:

    Watch the lobbyist for the biggest players get their exemptions from the trading tax.

    Alan Reynolds = inequity denier.

  7. Jojo says:

    Bloomberg Businessweek
    Relatively Hard Times
    December 5, 2011

    The Great Recession has left even the richest Americans at least a little poorer. Don’t worry too much for them, though–they’ll be the first to benefit when the economy recovers

    According to an IRS analysis of 2009 tax returns, the rich aren’t doing as well as they were a few years back. The number of taxpayers with an adjusted gross income of $10 million or more dropped 55 percent from 2007 to 2009, to about 8,200 taxpayers. Their collective income fell to $240 billion in 2009 from $562 billion two years earlier.

    [graphic charts and stats at URL]

  8. brazzer says:

    Re: Sechel & BR

    I have been saying for years a tax is not even needed. Take away the exchange rebates that allow the HFT’s to trade essentially for free. There is nothing wrong with a part of the market being HFT. If they paid the same commissions that everybody else was paying they wouldn’t exist.

  9. Frwip says:

    Alan Reynolds’ sorry joke of an op-ed gets mildly discombobulated by Timothy Noah.

    (Linkness courtesy of J Bradford Delong)

  10. Giovanni says:

    I think I could see the strings operating Obama as his mouth-pieces poo-pooed the tiny transaction tax. Did I see Llyod Blankfein’s hand on the strings?

  11. SOP says:

    Obama tries changing stripes ???

    “We shouldn’t be weakening oversight and accountability. We should be strengthening them… I’ll be calling for legislation that makes these penalties count – so that firms don’t see punishment for breaking the law as just the price of doing business.”

    four fucking years too late buddy.

  12. JerseyCynic says:

    SOP – I’m really beginning to wonder about Obama’s Muppet Masters and who’s zooming who

    Speaking of Muppets, did you know that “liberals are trying to brainwash our kids against capitalism”?

    Faked outrage at its finest!!

    “This attempt at right-wing media criticism brought to you by the letter “S”… for stupid”

  13. SOP says:


    Re. Obama’s programmers.

    I wonder if, after months of OWS protests, they finally had a “DUH!” moment – “Ahhh, so that’s why they are so pissed off – because we let white-collar criminals rob them… hmmm,… ”

    So, after months of study, Obama’s Programmers added the above to the Teleprompter script.

    As for the Muppets ‘controversy’ and the media – it is hard to tell which ones are the cartoon characters. Maybe they are trolling for the Jerry Springer audience to buttress their ratings??? Who knows.