Some reads to start off your day:

• Tech Giants’ Revenue Slows (WSJ) see also Google Cools Off, and Stock Drops (WSJ)
Josh Brown: It’s an RIA World, Everyone Else Just Lives in it (WSJ)
• 5 Reasons QE3 Is Off The Table (Pragmatic Capitalism) but see China’s Manufacturing Contraction Boosts Case for Monetary Easing (Bloomberg)
• The Man Who Bought North Dakota: Wildcatter Harold Hamm is the biggest winner in biggest American oil find since Prudhoe Bay (BusinessWeek)
• New Normal on Wall Street: Smaller and Restrained (DealBook) see also Morgan Stanley Reducing Senior Pay 20% to 30% (Bloomberg)
• The Top 50 Technology Blogs to Watch in 2012 (The Entrepreneur Blog)
• Unearned, and Taxed Unequally (NYT) see also Why Taxes Aren’t as High as They Seem (NYT)
• Legal Twofer:
…..-Montana Supreme Court upholds election spending limits (LA Times)
…..-Tenth Amendment Zealots Block GOP’s Medical Malpractice Reform (TPM)
• How USPTO’s recklessness destroys business, innovation, and competition (BoingBoing)
Concert Info: Who Owns My Ticket? (NYT)

What are you reading?

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Investors Pull Cash From Hedge Funds

Source: 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.

22 Responses to “10 Friday AM Reads”

  1. BenE says:

    There seems to be a discussion about taxes going on. I’ve long wondered, what are the arguments for low tax on capital gains and dividend anyways? To me, these things should be taxed to a greater degree than other things because it is money obtained for doing nothing.

    I understand the arguments for low corporate taxes. If money stays in a company and is reinvested nobody gets to spend it so it doesn’t make much sense to tax it. High corporate taxes will only make companies move away to where they are lower and destroy jobs.

    I also think income taxes should be lower. Income tax, is basically taxing someone for helping themselves or helping others. I find it weird that, if I invite people to have dinner at my place and prepare food for them, I don’t have to give a third of the food I prepare to the government. If my friends invite me they don’t have to either. If we were to start doing it officially, and exchange currency to make sure our food trading relation is fair, suddenly we have to give a third of what we prepare to the government!

    It seems to me that income tax discourages people from doing something useful and should be minimized.

    Capital gains and dividends, on the other hand, are obtained for doing nothing. You get rewarded, just for owning means of production. It seems these should be taxed _very heavily_. It’s not like no one will own these means of productions if they are taxed more. They will still be worth more than owning cash. If you invest in a company and make it big, there is no reason, we shouldn’t tax that progressively, at, say, up to 80%.

    I always thought governments should collect most of their taxes from, capital gains, dividends and natural resource consumption. These are all things where wealth generation depends more on inherent characteristics of the universe or simple ownership than on any kind of efforts. Intuitively there seems to be much less perverse incentives in taxing them heavily. I’m no tax expert. Maybe someone can prove me wrong.

    I understand that investments are important and you don’t want to discourage investing too much. But, I don’t believe investment money would go away even if the gains were taxed heavily. Where would people put their savings? Right now, with the regular occurrence of devastating bubbles, it seems like there is _too much_ money in the wall street casinos, not too little. Higher dividend and capital gains taxes could help reduce this over supply of investment money. If accompanied by lower taxes on income and corporations, it would help people go back to doing actual work and buying actual things instead of hoping for their wealth to be created out of thin air from gambling on wall street.

    This to me, seems like a no brainer. I’m no economist. What am I missing?

  2. Raleighwood says:

    I find this guy interesting.

    Years ago I learned “coming to terms” literally meant finding the actual word (term) that described the psychological/spiritual/political impact of whatever the situation was.

    Language is very powerful – that’s why blogs like BR’s allow for discussions and insights that are not generally allowed in the MSM.

    Controlling the blogs would then control the language, which controls the discussion, which then controls the decisions and conclusions. And we certainly can’t have a nation of people thinking for themselves and coming to conclusions different than what the politicians would prefer.

    http://www.zerohedge.com/news/michael-krieger-summarizes-building-tension

    While watching the criminals that run the nation manipulate, scheme and systematically dismantle our inherent rights as human beings is bewildering and frustrating, I believe their actions are representative of nothing more than rats scurrying around.

  3. VennData says:

    What Ron Paul Wants

    “…The answer is coming clear, and it ought to have the Republican voters who are hosting Mr. Paul in this primary unhappy. The speculation up to now has been that the Texan might launch a third-party run, but it seems he’s keeping that in his back pocket. His real aim is to take the party hostage, threatening to withhold his followers’ votes unless the GOP agrees to adopt positions that are anathema to most conservatives. Call it minority rule…”

    http://online.wsj.com/article/SB10001424052970204616504577171092068727100.html

    Well, what if it’s majority for America?

    The GOP Media Machine can’t understand why all those drones they feed with their birth certificate / Socialism / apologizing for America nonsense out there don’t just get behind Romney, the GMMachine’s Wall-Street choice to cut taxes on the rich even further …abortion, flag-burning, Robamacare be damned.

    “Come on,” the GMM are now saying, “We were just kidding when we crated the Tea Party SuperPAC days after Obama’s election to fool… er… a… get you riled up.”

    “Now get with the program, Bitches! And get behind Romney. Think of all the crazy things will come up with to entertain you while our taxes are cut further.”

    Suckers.

  4. VennData says:

    Tax Plans Duel for Primacy in GOP

    Romney’s Proposal Is More Achievable, As Gingrich Goes for the Radical Redo

    http://online.wsj.com/article/SB10001424052970203750404577171300032471184.html

    Come on GOP voter. Time to forget all that inter-year mumbo jumbo. Romney’s plan is achievable, it’s doable. His plan to cut capital gains, dividends, and interest to zero…

    https://mittromney.com/

    is doable. You see? We need to leave taxes on work the same, you know, workers are going to work, but people who sit around… er…a… invest their hard-earned capital NEED tax cuts otherwise they may invest in Myanmar. Those other plans are RADICAL!

    Doability. That is what’s important to you now. Listen up GOP voter. D-O-A-B-I-L-I-T-Y in 2012!

  5. willid3 says:

    another bank mess?
    banks can ‘buy’ insurance for you on your mortgage (all good and well I suppose) but it turns out that they are buying insurance from companies they own or using internal insurance ‘agencies’ that actually do no work for their large commissions
    http://blogs.reuters.com/felix-salmon/2012/01/19/contingent-liability-of-the-day-force-placed-insurance-edition/

    Bene
    all of the studies on corporate taxes don’t indicate that the higher rates mean much. doesn’t create jobs that you are expecting. which in a way make sense. cause you are giving them a pay raise for doing nothing more than what they were doing before.
    the only reason a company ever creates jobs is if there is demand for what they are selling. lower taxes won’t do that.
    demand is the only source of jobs in any capitalistic economy. otherwise you have corrupted it and made it some thing else all together.

  6. Behavioralhowitzer says:

    As a behavioral economist whose work is almost entirely in the legal regulatory field (and as someone who in a previous life had a great deal of experience in medical consulting, malpractice, and malpractice litigation), the notion of malpractice caps for rewards as a simple resolution for healthcare costs is idiotic.

    The goal of the malpractice reward caps of course, is to reduce medical expenses on aggregate. The argument as I understand it is that malpractice insurance is a significant factor in driving costs in the healthcare field. However, malpractice insurance and payments remain a fraction of a fraction of medical costs on aggregate (even the OB GYN Reporter places it at 11 billion out of 2.32 TRILLION in total expenditures on Healthcare in the US). Quite simply, it is a small savings given the potential risks of imposing caps on rewards for clearly malicious behavior. We need to find savings from other places.

    The danger of limiting the rewards is that you simply kill malpractice suits. Malpractice suits are incredibly expensive to bring to court- in the neighborhood of 2-3 million dollars a case, and any limits on rewards below that number make it exceptionally difficult for lawyers to prosecute those cases. If there is no de facto legal recourse to punish malpractice, there’s a serious risk of its explosion- Doctors are no different than any other industry. The risk in terms of damage far outweighs the savings.

  7. rj chicago says:

    Two things quick:
    The Harold Hamm article and his discussion with the Occupant in the WH – All the more reason for the Occupant to go – out with him the dolt!!!

    Re: Housing – the problem with housing as posted in yesterday’s PM reads for the train – love that – I do the same here in Chicago – is that housing and employment travle together – they self reinforce each other. With no ability to find work – people don’t move and without a reason to move – housing sales falter and / or the owner with no job and no ability to move defaults causing this self reinforcing downward cycle. We may be at a point where it is too late for this housing / employment mess to de-couple itself.

  8. ews says:

    The author of the Who Owns My Ticket is a total disgrace and a shill for the secondary ticket market, yet pretends to speak for the ticket-buying public. What a piece of trash.

  9. Raleighwood,

    toward your point..

    “When men yield up the privilege of thinking, the last shadow of liberty quits
    the horizon.”
    – Thomas Paine
    (1737-1809)
    http://quotes.liberty-tree.ca/quote_blog/Thomas.Paine.Quote.8AD8

    also, above Quote is handy to recall, esp., when coming across TPM-style Agit-Plop

    (-Tenth Amendment Zealots Block GOP’s Medical Malpractice Reform (TPM))

    Agit-Plop

    part Agitprop/part Horse-Plop ~

  10. VennData says:

    I’m going for Santorum…

    “…. just finished watching the 482nd Republican presidential debate and am convinced that the candidate most deserving of the nomination is former Pennsylvania Sen. Rick Santorum. Let me point out that I didn’t come to this conclusion without much internal struggle. Like most Americans, I’ve been torn these past several months between the intellectual superiority of Rep. Michelle Bachmann, the debating mastery of Gov. Rick Perry, the vision of Herman Cain, the conviction of Mitt Romney, the integrity of Newt Gingrich, the clarity and coherence of Rep. Ron Paul, the Svengali-like charisma of Jon Huntsman Jr., and the humility of Santorum…”

    http://www.ostroyreport.com/2012/01/why-im-endorsing-rick-santorum.html

  11. willid3 says:

    more bank get out jail cards?
    http://www.nakedcapitalism.com/2012/01/bending-the-rule-of-law-to-help-the-banks-effort-to-draft-a-national-foreclosure-statue-underway.html

    banks can’t follow current law, so create a new that is simpler for them to follow.
    and nationwide

  12. Tim says:

    The secret is out! >> In the Top 50 Tech Blogs site, blogger Evan Carmichael cites #19 The Big Picture and says: ” It is written by me (& the crew)”.

    Does this mean BR is a plagiarist?!

  13. Arequipa01 says:

    In this country Labor is taxed at current levels in order to ensure that the majority of citizens cannot accumulate capital.

    Think about a wage earner, higher end, mmm, 250k+. Do his/her profile. Yikes. And what contexts exist for his/her excedent?

    401Ks, IRAs, bonds and equities in a hyper-mediated environment. These numbers are poured into a system that uses their ‘wealth’ to wall off access to wealth accumulation. Hilarious.

  14. willid3 says:

    is the US debt picture actually getting better?
    http://krugman.blogs.nytimes.com/2012/01/20/debt-and-transfiguration-2/

    and taxes?
    .01% percent taxes.
    got to include corporate taxes too. but i thought they were people? and that these taxes actually fell on labor instead which is?
    http://krugman.blogs.nytimes.com/2012/01/20/more-about-corporate-taxes-and-the-01-percent/
    http://krugman.blogs.nytimes.com/2012/01/19/corporate-taxes-and-the-01-percent/

  15. willid3 says:

    does it really take forever to foreclose? or is really just foot dragging by banks that make it look that way?
    http://www.nakedcapitalism.com/2012/01/is-the-it-takes-forever-to-foreclose-meme-a-big-bank-flattering-exaggeration.html

  16. NoKidding says:

    Yet another graphic that says something true and shows something true, but leaves a careful viewer wondering why those two things are not the same.

    Brilliant.

  17. farmera1 says:

    Moody’s warns it will likely cut big bank ratings

    “Moody’s Investors Service, the credit rating agency of Moody’s Corp (MCO.N), warned on Thursday that it is likely to make further cuts in credit ratings of many European banks and global investment banks.”

    http://www.reuters.com/article/2012/01/19/us-moodys-banks-idUSTRE80I29120120119

  18. clvanwyk says:

    Top 10 Surprises for 2012! By Arrow Capital Management in Toronto
    http://www.arrow-capital.com/MediaUpdates/ArrowInsightsBlog.aspx

  19. Bill in SF says:

    Best bipartisan flip/flop ever.
    Probably a speed record as well.
    Thanks, internet!

    http://boingboing.net/2012/01/19/how-the-internet-blackout-affe.html

  20. VennData says:

    Microsoft supports gay marriage.

    http://blogs.technet.com/b/microsoft_blog/archive/2012/01/19/marriage-equality-in-washington-state-would-be-good-for-business.aspx

    If the Right had any integrity they would stop updated their Microsoft Software. In fact they would toss out their PC’s after hearing this PC rubbish.

    A message to all ideological rightists: Get rid of your computers now, or you are supporting homosexuality against the teachings of the Bible!