Here are my morning reads:

• Economy in U.S. Grew at 3% Pace in 4th (Bloomberg) see also U.S. Growth Revised Up (WSJ)
• Doubtful Signs of a Criminal Case Against MF Global (DealBook)
• Risk On: Was 2008 Just a Bad Dream? (Businessweek) see also Why it took the Dow so long to eclipse 13K (MarketWatch)
• Should the United States join OPEC? (NY Times)
• Wall Street was never on your side (Abnormal Returns)
• As Bank Profits Plunge, Wall Street Bonuses Fall Modestly (DealBook) see also Wall Street Bonus Pool Shrinks 14% (WSJ)
• Insider Probe Targets a Top Goldman Manager (WSJ)
• Grading the Obama Economic Record (Economix)
• Ron Paul, Party Crasher (New Yorker)
• A Silicon Valley Tale of Humiliation and Revenge (Inc.)

What are you reading?


Source: Businessweek

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 Mid-Week AM Reads”

  1. louiswi says:

    A pretty interesting foretelling by Ron Paul from 1998 on the above link.

  2. any one, else, notice the similarity between the size of the, recent, LTRO and AAPL’s ‘Mkt. Cap’ ?

    AAPL may have some ‘Valuation’ “Problems”, and some ‘Labor Issues’ to iron-out, but they, still, Produce ‘something’, no?

    at least, ‘something’ more than turning ‘Dead Paper’ into ‘Cold Cash’..but, then, again, I’d reckon that depends on ‘which side of the Table you’re sitting’, yes?

    “…In the wake of a 12-year battle to keep Monsanto’s Genetically Engineered (GE) crops from contaminating the nation’s 25,000 organic farms and ranches, America’s organic consumers and producers are facing betrayal. A self-appointed cabal of the Organic Elite, spearheaded by Whole Foods Market, Organic Valley, and Stonyfield Farm, has decided it’s time to surrender to Monsanto. Top executives from these companies have publicly admitted that they no longer oppose the mass commercialization of GE crops, such as Monsanto’s controversial Roundup Ready alfalfa, and are prepared to sit down and cut a deal for “coexistence” with Monsanto and USDA biotech cheerleader Tom Vilsack…
    …In exchange for allowing Monsanto’s premeditated pollution of the alfalfa gene pool, WFM wants “compensation.” In exchange for a new assault on farmworkers and rural communities (a recent large-scale Swedish study found that spraying Roundup doubles farm workers’ and rural residents’ risk of getting cancer), WFM expects the pro-biotech USDA to begin to regulate rather than cheerlead for Monsanto. In payment for a new broad spectrum attack on the soil’s crucial ability to provide nutrition for food crops and to sequester dangerous greenhouse gases (recent studies show that Roundup devastates essential soil microorganisms that provide plant nutrition and sequester climate-destabilizing greenhouse gases), WFM wants the Biotech Bully of St. Louis to agree to pay “compensation” (i.e. hush money) to farmers “for any losses related to the contamination of his crop.”

    In its email of Jan. 21, 2011 WFM calls for “public oversight by the USDA rather than reliance on the biotechnology industry,” even though WFM knows full well that federal regulations on Genetically Modified Organisms (GMOs) do not require pre-market safety testing, nor labeling; and that even federal judges have repeatedly ruled that so-called government “oversight” of Frankencrops such as Monsanto’s sugar beets and alfalfa is basically a farce…”

    the first part of this.. re: Mary Schapiro, was worthwhile..

    and, if you’ve ever wondered what someone FOS looks like..

  3. Renting in Mass says:

    I’m sure I’m missing something, but it seems like a safe bet to buy instruments that are tied to this index. Isn’t it a given that at sometime in the next 30 years volatility/fear will spike again?

  4. rd says:

    Re: Wall Street was never on your side.

    Mandatory reading for people when they leave high school should be :

    Where Are the Customers’ Yachts by Fred Schwed written in 1955 but describing the 1920s; and
    Extraordinary Popluar Delusion and the Madness of Crowds by MacKay (e-book available free on Google Books) written in the 1800s.

    Personally, the past few decades have seen the arrival of Vanguard and Charles Schwab (among others), so it has to be a very special investment category to warrant over 1% in annual fees with a base of less than 0.30% for a high percentage of a portfolio. This would heve been unimaginable 40 years ago. For a do it yourself investor now, it is easy to keep annual expenses to less than 0.75% including transaction costs. Over 1%, and you should be getting full-service investment support from your provider in which case, it should still not go over 2% total.

    I have also seen a distinct improvement in my 401k options over the past 25 years. My guess is that my average annual expense ratios have dropped about 0.5% a year to 0.75% or less with more diversified portfolios with better investment options.

  5. rd says:

    Re MF Global stories over the past couple of days:

    “Investigators, unable to find a smoking gun amid thousands of e-mails and documents, increasingly suspect that chaos and poor risk control systems prompted the disappearance of more than $1 billion in customer money, according to several people involved in the case.”

    SARBANES-OXLEY!!!!!! at a minimum.

    Chaos and poor risk control systems are what Jon Corzine and others at MG Global were certifying that they had made sure they would not have.

    I think the SEC and the FBI financial and fraud divisions have hired a bunch of Inspector Clouseaus.

  6. Robespierre says:

    On The MF global. When the criminals are as well connected with most likely possessing dirt on every politician out there prosecutors will always be dumfounded . For a more truthful reporting on MF global and why there should be criminal prosecution I recommend this link and not the one from the tool at NYT

    And a note to the prosecutors wasn’t SARBANES-OXLEY passed so CEO could not claim stupidity when steeling from customers and their own companies? Lets face it some one as well connected as the CEO of MF global will never be prosecuted even if he committed crimes against humanity at a biblical scale.

    MF Global: Crime, Comedy and the Cover-Up

  7. thomas hudson says:

    singapore officials thwart iranian attempt to assasinate israeli defense minister.

  8. scecman says:

    Re: Wall Street Bonus Pool Shrinks 14%

    I love this comment in the article:
    Mr. DiNapoli said in an interview on MSNBC that “whether we love them or hate them, we need Wall Street to be profitable.” Compensation has been a hot-button issue in recent years as many people blame these firms for offering the lofty pay packages that led to excessive risk-taking and heavy losses in 2008.

    The only reason I can think of that “Wall Street needs to be profitable” is either that it will keep them for increasing their lobbying in DC or it will stop them from creating some new pile of crap to sell regular Joes, and blow up the economy again.

  9. 28 February 2012
    Tavakoli: The Great MF Global Comedy Cover Up

    Powerful interests are involved. Too Big To Fail and Too Connected To Jail.

    This brief piece by noted financial analyst and author Janet Tavakoli is the sharp edge of her incisive wit.

    The coverage of MF Global by the financial print media has been laughable, with the notable exception of Forbes. MF Global was the eighth largest bankruptcy in the US, with thousands of customers victimized by theft, and yet one hardly ever hears about it.

    I have had a few conversations with people knowledgeable about Fedwire, the most reliable system for wire transfers in the states for large transfers between financial entities, and the one that MF Global might have used. After all, they were one of the Fed’s own Primary Dealers. If so, is the Fed withholding information about the transfers? The problems in finding out who received certain transfers in excess of $100 million left the people I discussed this with incredulous.

    “The Fedwire Services are the premier electronic payments and securities transfer services that banks, businesses and government agencies rely on for mission-critical same-day transactions. When it absolutely matters, trust Fedwire Services to deliver transactions with certainty and finality.”…”

    needless to say, there is a difference between Mary Schapiro, and Janet Tavakoli…one, so large, as to approach ‘inexplicability’..

  10. DeDude says:

    Brad DeLong runs the numbers on debt and deficit spending in a low interest environment.

    Not that sense will change any GOP minds (those will only be changed if they themselves get in power and will be held responsible for economic growth).

  11. willid3 says:

    why did any one ever think Wall Street was never on your side?
    obviously they couldn’t be. no matter how much they might try to sell you that they are.
    because they are selling you services. they have to optimize their profit from that.
    and they will fight anything that will reduce their profits from you.

  12. Robespierre says:

    I’m reading this and the only thing that crossed my mind was (fill in the blanks). Worth reading all of it..

    “People who don’t have money don’t understand the stress,” said Alan Dlugash, a partner at accounting firm Marks Paneth & Shron LLP in New York who specializes in financial planning for the wealthy. “Could you imagine what it’s like to say I got three kids in private school, I have to think about pulling them out? How do you do that?”

  13. rd says:

    On Wall Street Bonuses:

    The financial markets typically have bear markets about 1/3 of the time. Perhaps Wall street folks should view their incomes similar to how professional athletes should. namely, that the big money will not be available every year, so you budget off a reasonable base and much of the bonuses get saved for the future years when their pay suffers.

    It appears that many pro athletes and Wall Street players have lot in common as to how they view income and expenses. However, professional athletes don’t have an Uncle Ben who will come in and at least try to preserve their jobs.

  14. SOP says:

    Re. Should the United States join OPEC? (NY Times)

    So Tom Friedman and Newt Gingrich are both going to Creationists Museums instead of Disney World for vacation? I suppose they will go with Rick Insanitorium?

    Popular Mass Delusions and the Madness of Crowds needs to be updated.