Early morning reads for the week:

• Revolving Door: From Top Futures Regulator to Top Futures Lobbyist (Rolling Stone) see also Could Huntsman and the Democrats Ally on Bank Reform? (Economix)
• What Would a European Tobin Tax Really Mean? (Spiegel.de)
• Stiglitz: The Perils of 2012 (Project Syndicate) see alos An Upside-Down Recovery Goes Back to Square One (Bloomberg)
• Inside the Fed in 2006: A Coming Crisis, and Banter (NYT) Fed’s image tarnished by newly released documents (Washington Post)
• Borrowers turn lenders as banks tap firms for cash (Reuters)
• China: Get Ready for Turbulence (The Diplomat)
Today’s WTF headline: Investors Say Supply Sider Arthur Laffer Backed a Ponzi (Court House News)
• The 160 Billion Dollar Bezzle (Psy-Fi Blog)
• Forecasting next week’s Apple education event (Mac World)
• Frustrations Mount As Conservatives Worry The Tea Party’s About To Blow It In 2012 (TPM)

What are you reading?


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.

17 Responses to “10 Friday AM Reads”

  1. MayorQuimby says:

    That man and his cronies are STILL running things (the same way).

    And the outcome will be the same once again.

    The premise that we can live beyond our means REQUIRES a perpetually growing economy in the REAL sense (not nominal GDP figures) and the lowering of interest rates and injecting of credit in and of themselves achieve nothing whatsoever.

    Deficits and debts are the problem because those liabilities REQUIRE payment regardless of the economic situation. Once we are indebted we are forced to either default or cheapen money.

    Remember this during the next DEBT CEILING HIKE FIASCO which is just beginning.

    Remember that regardless of what happens in the economy, the accrual of another $1.2 TRILLION will mean QE 3 is coming and EVERYONE READING THIS will be getting another 4 percent pay cut via inflation and the FOMC.

    Eventually you will figure it out….that there is no free lunch and that debt is not the means to grow an economy, building shit and innovating IS. Surpluses are nice but simple balanced budgets and an old fashioned work ethic can turn this all around AFTER we default the absurd debts accrued over the past twenty plus years.

  2. Moss says:

    The Tea Party enthusiasts now know for sure the whole movement was nothing more than a rant. Willard has even gotten the endorsement of Niki Haley, faux Tea Party advocate.


  3. budhak0n says:

    The “debts” are yours pal.

    My generation has nothing to do with it and we won’t be bailing you out on this one either.
    Besides that, Have a wonderful new year all.

    Oh and who is “that” man?

    It’s going to be fun to watch the powers that be now not only “invent” economic activity but “invent” clients as well.

    Great stuff. Just adds to the comedy routine.

  4. Mike in Nola says:

    It really is a Prison Planet. At least they didn’t kill him with a drone. But, I assume that’s coming.


  5. VennData says:

    Senator DeMint Flip Flops on Social conservatism.

    “…I’d like to see a Republican Party that embraces a lot of the libertarian ideas…”


    He used to say “…You can’t be a fiscal conservative and not be a social conservative…”


    DeMint, which Social Conservative policies SPECIFICALLY are you now against? That you were for… before, when you were for them….

    Jim DeMint… of the Nut Job populists who brought you the US ratings downgrade.

  6. rd says:

    Hasn’t the Laffer Curve istelf tounred out to be a Ponzi scheme? We need to keep funding tax cuts to the wealthy by borrowing money from future generations.

  7. this is a *sweet Story..



    care to guess what % of these REMICs were stuffed into ‘Pension Funds’?

    re: “…The “debts” are yours pal.

    My generation has nothing to do with it and we won’t be bailing you out on this one either…”

  8. sabre_jenn says:

    Bernanke testified before Congress in 2007 that “the subprime contagion remains well contained”. He misdiagnosed a solvency crisis as a liquidity crisis — then violated common sense by lending freely and lending at zero percent (instead of dearly). The man has no clue about banking or economics.

    The truly insane people are the ones who thought this Fed had the skill set needed to fix the economy.

  9. eliz says:

    Re the article in Economix:

    Simon Johnson, on his Baseline Scenario blog, makes a good argument for Huntsman as the GOP candidate precisely because of his ideas about limiting bank size.

    See Refusing To Take Yes For An Answer On Bank Reform

  10. MaxThrax says:

    Now that Newt is backing off, it’s apparent that the GOP is going to chain itself to the dying corpse know as ‘trickle down’ economics. Too bad it’s no longer salable to even the average, know-nothing American voter.

  11. Jojo says:

    Mafia now “Italy’s No.1 bank” as crisis bites: report
    ROME | Tue Jan 10, 2012 4:36pm EST

    ROME (Reuters) – Organized crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country’s biggest “bank” and squeezing the life out of thousands of small firms, according to a report on Tuesday.

    Extortionate lending by criminal groups had become a “national emergency,” said the report by anti-crime group SOS Impresa.

    Organized crime now generated annual turnover of about 140 billion euros ($178.89 billion) and profits of more than 100 billion euros, it added.

    “With 65 billion euros in liquidity, the Mafia is Italy’s number one bank,” said a statement from the group, which was set up in Palermo a decade ago to oppose extortion rackets against small business.


  12. Jack says:

    I hate to say it but the “stupids” are winning this fight. The “people” are still looking at those who screwed (are screwing) them as their saviors. More rich people will get richer. Fewer , ahh fuck it, who gives a shit?

  13. MikeG says:

    Fifty-two investors claim fund managers associated with supply-side economist Arthur Laffer took $3.1 million to prop up a Ponzi scheme, then said nothing as their money was “wasted with no reasonable expectation of recovery.”

    Anyone stupid enough to invest based on an affiliation with Arthur Laffer probably deservesto lose money. The rest of us took plenty of economic losses due to the idiot ideologues who pushed the self-serving economic “theory” of this clown.

  14. formerlawyer,


    was interesting..

    did you, too, think that quite a few of those ‘Responses’ were predictable–from the ‘cohorts’ position in the ‘Life Cycle’?

    but, at the EOD, it seems to me that “Gens. X & Y” need to use the ‘Institutional Memory’ of, what’s left of, the ‘Silent’-Generation, in order to put forth a cogent alternative to ‘BBoomers’, seemingly, “endless adolescence”/demands thereof..

    or, IOW, the ‘Silent’-Generation, just, may be the Last–that understands the hard work it takes to, actually, build a Society/Economy..

    I wonder if, after all this Time/that they’ve ‘been through’, They’ll, actually, ‘find a Voice’ (?)