My afternoon train reading:

• Hedge Fund Manager Dan Zwirn, the Man Who Fell to Earth (Businessweek)
• Dark Pools Win Record Stock Volume as NYSE Trading Slows to 1990s Levels (Bloomberg)
• Share Traders More Reckless Than Psychopaths, Study Shows ( see also 10 Commandments for Con Men (Lists Of Note)
• Analysis: Critics question cost as consultants nip and tuck SEC (Reuters)
• Commodites: Bull market corrections or the start of bear markets (Peter Brandt) see also Rising Crude Prices Tap Into a Barrel of Nonsense (Bloomberg)
• Threatened Goldman Japan workers unionize (Japan Times)
• Senators target Facebook with bill that would close stock-option loophole (Washington Post)
• In the Future Everything Will Be A Coffee Shop (Speculist)
• Memory Is Not a Recording Device: How Technology Shaped Our Metaphors for Remembering (Brain Pickings)
• Bubbles at the Edge of Space: Merav Opher Is Changing Astrophysics (Txchnologist)

What are you reading?


No, Rick, Energy Prices Did Not Cause the Housing Bust

Source: TPM

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 Thursday PM Reads”

  1. glenns says:

    Sorta looks like energy prices caused the financial crisis?

  2. willid3 says:

    the new welfare recipients?

  3. wally says:

    “No, Rick, Energy Prices Did Not Cause the Housing Bust”

    No… but the chart does not prove that. It only shows that the peak gas prices came after housing had started down. Left unanswered is whether high prices before the peak were enough to trigger missed mortgage payment en masse.

  4. Rightline says:

    Listening to Louise Yamada on Bloomberg pretty bullish especially on tech…

  5. Concerned Neighbour says:

    Israel to Begin Investing Reserves in U.S Equities Today

    Of course, we’ve known for a long time that central banks having been buying equities during the “recovery”, albeit indirectly through funneling QE money to HFT. Now it’s coming out into the open.

    Wonderful markets we have, wouldn’t you agree? I’m running out of words to describe the world these days… corruption and manipulation at levels that almost defy belief.

  6. SOP says:

    @ wally,

    Based only on that graph, it looks like $3 gasoline is the Economic Stop sign.

    Santorum, From the article:

    “The housing bubble was caused because of a dramatic spike in energy prices that caused the housing bubble to burst,” Santorum told an audience in Colorado.”

    We live in a Monty Python world now. Nothing is to be unexpected anymore.

  7. All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.

    -John Kenneth Galbraith

    too bad, ol’ #44 wasn’t ‘taking Notes’..

  8. NoKidding says:


    I heartily agree with the thesis, but neither the graphic nor the observation backs it up.

    The housing market crashed while oil was going up, on the way to a new record. Doesn’t matter whether it had peaked yet. Personally I think the same root causes – cheap debt and perceived scarcity – drove both, but the graphic does not make that point either.

  9. willid3 says:

    not sure why we think oil is acting like a supply (only potentially under threat) and demand (tanking. has been for several years now).
    and the US has become a big gas exporter. because demand in the US is down (doubt it? consider we have fewer refineries, running a reduced capacity, and we export refined products, and we don’t have local shortages).
    even if we could expand US production (that dill,baby,drill routine), we wouldn’t impact oil prices. since its a global commodity. being traded on dark exchanges, by those who will never use it for any thing

  10. SOP says:

    Bill O’Reilly, Friedman, Newt… oh boy.

    Bill O’Reilly is Misinforming Americans About Oil Supplies

    “With all due respect, Bill O’Reilly has a fundamental misunderstanding about oil supplies. There is not “plenty of oil and gas in the U.S.A.” He has mistakenly translated net exports of finished products like gasoline and diesel into “plenty of oil and gas in the U.S.A.”, as I explain below.”


    People Aren’t Smart Enough for Democracy to Flourish, Scientists Say

    Maybe people are just too distracted? Our culture is very ill, how can you expect people to think straight?

  11. bonerici says:

    what a bullshit puff piece on Dan Zwirn, this is a guy who bought up $10 billion in toxic assets right before the entire economic meltdown and when it turned out these assets were garbage, he blamed his CFO for moving around money to keep payroll afloat, what the heck was Gross supposed to do? You think Zwirn working 100 hours a week, micromanaging every aspect of his fund didn’t know about it? Seriously, what garb age, and then Zwirn blames the audit firm for everyone leaving the fund like rats off a sinking ship.

    That’s the problem with geniuses, it’s never their fault when they build a house of cards. Poor poor Dan Zwirn. He should be so lucky that his company didn’t last just two more years, when it could have crashed in a much more spectacular fashion with billions of toxic debt.

  12. GuinnessFan says:

    Repeat after me. Correlation (or something close) does not prove causation.

  13. TM ME says:

    Geithner op-ed in the WSJ: Financial Crisis Amnesia

    The Dodd-Frank implementaion process has been horrible for the banks. It has left the industry in a state of “not knowing” which has lead to poor performance dislocation etc etc. But Geithner has a point there is a need for regulation to deal with the issues that came up in 2008………

  14. mathman says:

    Free Trade Or Democracy, Can’t Have Both
    by Dave Johnson, March 2, 2012 – 8:44am

    “Recent stories about the conditions of Apple’s contractors in China have opened many people’s eyes about where our jobs, factories, industries and economy have been going, and why. The stories exposed that workers live 6-to-12-to-a-room in dormitories, get rousted at midnight to work surprise 12-hour shifts, get paid very little, use toxic chemicals, suffer extreme pollution of the environment, etc. Is this “trade?” Or is it something else?

    Is This “Trade?”

    “Trade” means to exchange, to buy and sell, you buy from me and I buy from you. I have something you want and you have something I want, and we exchange. We both end up better off than where we started.

    Is it “trade” to close a factory here and move it to a country where people don’t have a say? It is “trade” to just move all of the machines from a factory here to a factory there, send the same parts and raw materials over there, and then bring bring back whatever it was the factory used to make and sell it in the same places here? Is that really “trade?” Or would another word be more appropriate?”

    (and concludes)

    “This Is About Preserving Democracy, Not About “Trade”

    How often do you come across arguments that “globalization” and “free trade” mean that America’s workers have to accept that the days of good-paying jobs and US-based manufacturing are over? We hear that countries like China are more “competitive.” We hear that “trade” means that because it’s cheaper to make things over there we all benefit from lower-cost goods that we import.

    How often do you hear that we need to cut wages and benefits, work longer hours, get rid of overtime and sick pay? They say we should shed unions, get rid of environmental and safety regulations, gut government services, and especially, especially, especially we should cut taxes.

    What they are saying is that we need to shed our democracy, to be more competitive.”

  15. Herman Frank says:

    Wildly interesting article about the benefits of being honest, respectable, democratic, all-encompassing (i.e. Russia and others are going to crash and burn):

    Prosperity, autocracy and democracy
    Chrystia Freeland
    Mar 1, 2012 19:00 EST
    Daron Acemoglu | james robinson | michael mcfaul | Russia

    To understand the significance of the presidential election this weekend in Russia, read a book by two U.S.-based academics that is being published this month. Why Nations Fail by Daron Acemoglu and James Robinson, of the Massachusetts Institute of Technology and Harvard University, respectively, is a wildly ambitious work that hopscotches through history and around the world to answer the very big question of why some countries get rich and others don’t. …..