My morning reads:

• The unprecedented behaviour of the central banks (FT.com)
• Europe’s $39 Trillion Pension Threat Grows as Economy Sputters (Bloomberg)
• Right Kind of Dividend Makes a Difference (WSJ) see also Dividends Rise in Sign of Recovery (NYT)
• Let’s talk about the market economy (John Kay)
• Blackstone Group says it “sucks” (Schwarzman, too!) (Domain Name Wire)
• In Greece, fears that austerity is killing the economy (Washington Post) see also Greek parents too poor to care for their children (BBC)
• Microsoft Says 4Q PC Shipments Likely Fell Short (Bloomberg) see also The Critics Rave … for Microsoft? (NYT)
• NYSE Deal Nears Collapse (WSJ)
• Romney Follows GOP Pattern of Losers Who Win (Bloomberg) see also Gingrich-Sponsored Attack Film Shows Romney as ‘Ruthless’ Rich (Bloomberg)
• Jacob Lew, Obama Nominee And Former Citigroup Executive, Doesn’t Believe Deregulation Led To Financial Crisis (HufPo)

What are you reading?

>

Dividends Rising

Source: NYT

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.

16 Responses to “10 Wednesday AM Reads”

  1. nofoulsontheplayground says:

    BR, the new home page layout is pretty harsh and industrial. Did you have Dieter from Sprockets design it? It looks like it is optimized for search, but not for page views.

    Did you run this by your wife before you did it, or is there a firewall between work and home? If she’s a designer, there’s no way she would have rubber stamped this redesign.

    ~~~

    BR: Do you mean the mobile version? Thats a plug in you can turn off on the bottom of the page

  2. nofoulsontheplayground says:

    BR, I was on my laptop, and the mobile version came up when I clicked on my usual bookmark for this site.

    It’s working fine now, so it must have been some glitch on your end or something.

  3. Julia Chestnut says:

    Is it wrong to pray for the people who did this to Greece to go to hell? I’ve never quite understood how, if your debt/GDP ratio is obscene, destroying your GDP helps. Unless your creditors have their boot on your throat and a gun to your head, no one tries to deflate their way out of a debt crisis, right? No one destroys an entire generation of their country, or openly tells its youth “You want jobs? We recommend you emigrate.” How do the creditors rate the destruction of an entire society? It’s just money – right?

    Right?

    You know, after WWII, we sent care packages to those ravaged in Europe and bought with those acts of charity tremendous goodwill and international influence. Now we export doom, little packages of AA-rated destruction?

  4. streeteye says:

    Always sell the stock when the company builds a new HQ
    http://www.ecb.int/ecb/premises/intro/html/index.en.html

    Skyscrapers linked to crises
    http://www.bbc.co.uk/news/business-16494013

  5. farmera1 says:

    Fortune Magazine, Jan 16, 2012 pg 11

    Couldn’t find a link but an interesting write up about derivatives (the unregulated kind) and the European crisis and US bank involvement.

    IN THE MIDST OF THE EUROZONE MELTDOWN, A TICKING TIME BOMB HAS GONE UNNOTICED: A SHAKY DERIVATIVES MARKET

    “Warren Buffett once famously described credit default swaps as “financial weapons of mass destruction”. Now these complex insurance policies are once again posing a menace to America’s too-big-to-fail banks. The last time around CDS on US subprime mortgage bonds nearly brought down insurer AIG, requiring an $85 billion bailout from the US Treasury. This time, the problem is European sovereign debt.”

    As was found out when the Paulson in 2007 tried to quench the crisis early on in the US, he found out no one knew where these things were and how much it would cost to buy them out. That’s when he came back and just gave the banks money. The article makes the same point, no one really knows how much the bank exposure is but for Italian debt alone the US banks exposure could be as high as $200 billion.

    Couple of comments, the reason these things were called derivatives and not insurance products (as this article calls them and what they really are) was that if they were insurance products they would have been regulated and there for reserve requirements would have to have been met. US banks not only only wrote derivatives on subprime mortgages, but a lot of other debt. AIG may have only been writing “insurance” on subprime, but there were lots of derivatives written on all kinds of debt.

    Oh Oh, where does this yellow brick road lead us????? I don’t really want to know, but it could be a issue. Don’t think that just giving the banks money this time like Paulson did is in the cards.

    ~~~

    BR: I used my secret inhouse search software to track that down:
    http://finance.fortune.cnn.com/2012/01/04/european-credit-default-swaps-crisis/

  6. SOP says:

    Shale Gas – FP Energy Letters: ‘Shale reserves may soon be discounted’

    http://business.financialpost.com/2012/01/10/fp-energy-letters-shale-reserves-may-soon-be-discounted/?__lsa=01e1d1f3

    —–
    Pride and joy and greed and sex
    that’s what makes our town the best
    Pride and joy and dirty Deals are still surviving on The Street
    And look at ME (Shale Gas Pumpers), I’m in tatters…

    Pumpers – pile it up, pile it high… on the platter …

  7. RW says:

    Current issues in causation research.

    A good overview of current thinking WRT causality in the philosophy of science cum society with a mess of links to recent work (ht Mark Thoma).

  8. VennData says:

    Romney Warn’s Foes to Scale Back Attacks.

    http://www.nytimes.com/2012/01/12/us/politics/romney-warns-foes-to-scale-back-attacks.html

    The GOP media machine is spinning out of control! Guess where Romney went on his Mission? France!

    http://en.wikipedia.org/wiki/Mitt_Romney

    That’s right, That’s where he got his Romneycare ideas! He lived in France!!! I question his patriotism. I question is commitment to capitalism! I question his commitment to America! …ya know ho close France is to Kenya!? And what is he really famous for? Organizing the Olympics. That’s right! Romney’s an Organizer …like the Community Organizer in Chief! Have you SEEN Romney’s Birth Certificate???

    Go GOP media machine, eat yourself alive.

  9. scecman says:

    Hey BR, am I the only one a little freaked out by this photo at the top of this article?

    WSJ – Protests Put Cities on Alert
    http://online.wsj.com/article/SB10001424052970203436904577151180031901776.html

    The cop holding an automatic machine gun at an OWS rally?!?! I understand the police fear their safety, but I think that might be a little much. How about a baton, or maybe a handgun held at your waist?

  10. rktbrkr says:

    I heard a talking head on Bloomberg radio describing proposed “euro safety bonds” where the governments would be jointly and severally liable for their repayment and Tom kean asked if the germans wouldn’t object because their borrowing costs would increase and they’d be left holding the bag and the proposer said that wouldn’t be a pwobwem because there’d never be a default, he kept referring to them as euro “safety bonds” and that euro trash “SAFETY DANCE” song started playing in my head while he rambled on about safety bonds.

  11. formerlawyer says:

    I know I posted this in the Tuesday pm reads but really this deserves more attention:

    http://www.huffingtonpost.com/2012/01/10/rnc-corporate-campaign-contributions_n_1197836.html

    “In the latest GOP effort to accord corporations the same rights as people, the Republican National Committee wants to strike down the century-old ban against direct corporate contributions to candidates and party committees.
    ……
    The RNC outlined its position in an amicus brief filed on Tuesday with the Fourth Circuit Court of Appeals ….

    That brief is on scribd at:
    http://www.scribd.com/doc/77811142/rncamicus

  12. Giovanni says:

    Farmera1- the other difference between a derivative and an insurance contract is that you must have ‘an insurable interest’ for the latter; in other words you can’t buy life insurance on your neighbor down the street because his death will not cause you a financial hardship. On the other hand you could probably find a bankster to sell you a HCS (Heartbeat Cessation Swap) on him… but you’d have to negotiate for the broadest definition of what would trigger a ‘cessation event’.