My morning reads:

• U.S. Economic Data is Surprising Forecasters (Bloomberg) but see Retail Sales in U.S. Climbed Less Than Forecast (Bloomberg)
• Which Country Defaults Next? (Japan)  (Montley Fool)
• EU Banks Selling ‘Crown Jewels’ for Cash (Bloomberg) see also Pondering a Dire Day: Leaving the Euro (NYT)
• Bernanke’s Legacy at Fed: Still a Lagging Indicator (WSJ)
• China’s housing bubble is losing air (LA Times)
• No One Says Who Took $586 Billion in Fed Swaps Done in Anonymity (Bloomberg) see also Are There Limits of Bigger Penalties in Fighting Financial Crime? (DealBook)
• Home Bargains Abound, But Willing Lenders Are Rare Breed (WSJ) see also Banks in Push for RoboSigning Pact (WSJ)
• Hedgies vs Obama (Reuters)
• From Garage To World’s Most Famous Company (Computer History)
• Unsubscribe (James Altucher)

What are you reading?

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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.

14 Responses to “10 Tuesday AM Reads”

  1. DeDude says:

    All this talk about small tax-cuts for the middle class that have to be “paid for” and huge tax-cuts for the wealthy that apparently do not, is a smoke screen for replacing compassionate conservatism with hard core predatory capitalism as the mainstream GOP philosophy.

    http://krugman.blogs.nytimes.com/2011/12/13/they-dont-care-about-deficits/

  2. overanout says:

    “lenders remain reluctant to provide mortgages to anyone with less than stellar credit.” The RE industry PR machine is in full swing trying to pry open the mortgage market to lower FICO along with higher DTI . The problem is that consumers are stuffed with debt such as expensive auto and large student debt and have careers choices that offer little long term security nor high income. Mark Hanson has been working in this field and writes the following:

    “When you look at DTI as the real driver of loan default you get a much clearer picture of why loan mods don’t work — and why they will never work — and how insurmountable the problem really is…people need full debt portfolio mods not just ‘mortgage’ mods.

    “Bottom line, the 78.3% median pre-modification DTI across all HAMP mod applicants is most likely a fairly accurate portrayal of the typical bubble-years borrower, in default or not, that the government, banks, and MI companies have spent years so desperately trying to prevent from defaulting through increased leverage via new-vintage, high-leverage, worse-than-Subprime loans (i.e., mortgage mods). Thus, our forecast stands…after two years we believe at least 75% of mods across all mod program and loan types will experience a 30-day redefault. ”

    http://mhanson.com/archives/499

    While the RE industry would prefer that the banking system continue to create loan packages for high DTI applicants the reality is that the banking system is loaded with default property that will take years to be adsorbed.

  3. Greg0658 says:

    thanks Krug & Dude for helping

  4. AHodge says:

    http://www.bloomberg.com/news/2011-12-13/eba-failed-to-evaluate-economic-impact-of-action-italy-s-mussari-says.html

    Italian Banks to Fight Higher Capital demands at ‘All Levels’ Mussari Says

    brokebank mountain–the comedy
    its hard to find a big italian bank to short
    they are all the Euro version of penny stocks

  5. Rightline says:

    listening to this…

    Felix Zulauf: A Coming Depression Will Lead To The Collapse Of The Euro

    http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/12_Felix_Zulauf.html

  6. Jojo says:

    Home sales even worse than we thought
    After its numbers were challenged, the National Association of Realtors took another look at the data and has decided to lower its numbers for home sales from 2007 to 2010.

    Last year saw the fewest number of homes sold in 13 years. Now we find the number is even smaller than the 4.91 million sales we thought occurred.

    The National Association of Realtors, which for decades has published statistics on sales of existing homes, says that its data were wrong and that fewer homes were sold from 2007 to 2010 than it had reported.

    New numbers will be issued Dec. 21, The Associated Press reported.

    http://realestate.msn.com/blogs/listedblogpost.aspx?post=01e6cb8f-9f0d-454e-b96e-9cb6f2d9c759

  7. DeDude says:

    formerlawyer; yes it is kind of amazing that the corporate media has been giving the GOP a pass on that one too. Small business owners making over 1 million/year (kind of an oxymoron to begin with) not being willing to take the write-off on their income for hiring another employee because the marginal tax-rate in that income (that they would have written off) is increased?

    If anything the incentive would work the other way (that’s what they usually claim about higher taxes making people work less). If you have the choice of either getting another hand to help or to let over 1/3 of that money you make (above 1 million) go to the taxman; you would be inclined to hire some more help (and be able to relax a little more yourself).

  8. AHodge says:

    there is a lot of groveling deifying and subsidizing small business
    the Job Creators
    some facts
    by most measures they create most of the jobs in an upturn
    they also lose most of the jobs in a downturn
    they employ most of the illegal immigrants

    there are about 4 million S corps
    about one third lose money and are a favorite platform for tax dodges.
    any S corp losses, like say Mercedes and hummer leases, carribean conferences
    are deducted one for one from your other income’
    you can only lose 5 years running and keep deducting
    but no prob, just close it and open another one

  9. herewegoagain says:

    Been reading H.L. Mencken and happened upon this ditty:

    “Government is a broker in pillage, and every election is a sort of advance auction sale of stolen goods.”

  10. formerlawyer says:

    @AHodge

    Are you sure?

    “So if most small companies aren’t going to hire, what type of businesses can we look to for job growth? Middle-market companies. Companies between $10 million and $1 billion in sales create 34 percent of all the jobs — a tiny slice of the U.S. economy that consists of just 200,000 companies, according to a new study from the Ohio State University Fisher College of Business and GE Capital.

    Unlike big or small businesses, the study suggests that medium-size businesses aren’t typically concentrated in one geographic region, industry or one ownership structure. So they tend to have more flexibility in tough economic conditions than their larger and smaller counterparts.

    The Fisher College study found that from 2007 to 2010, these mid-market companies added 2.2 million jobs, while big businesses cut 3.7 million jobs. Why haven’t we heard about this more? It seems the small pool of mid-market companies don’t have the kind of lobbying force of either small business or big business.”

    http://www.entrepreneur.com/blog/220616

  11. AHodge says:

    i give credit where due
    its a complex issue– middle market is dynamic as you say
    but one billion in sales not small to me
    can cut it on their own
    just 200,000?? thats huge to me
    there are only 9000 in the Wilshire 5000
    and you have to split the low tech– always small– laundry and bakery,
    and housebuilding pickup truck w immigrants–see how much of that was your small bus jobs ramp till 08– homebuilders like Toll do not have any actual builders of home on staff

    on the other hand the venture startup maybe a key place real capital and encouragement is needed
    but not in the IPO zone
    which is a joke with the friend and fanmily overhang and the less than 10% IPO issue

    i stand by the overdone deifying of small bus and some of their subsidies goin for tax dodges

  12. formerlawyer says:

    @AHodge

    I think we are in agreement that the “small business” is the “engine of employment” is over done. As well as being the province of the tax-doging 0.01% (or 1% if you will).