My morning reading material:

• A new era of bad money (MSN Money) see also Market Correction? Try Perma-Crisis (Harvard Business Review)
• Green Light for Hedge-Fund Ads Means Caution on Main Street (WSJ)
• Are Income Taxes Taking a Bite Out of $AAPL $GOOG (Stock Trader’s Almanac)
• Italy/Spain and US Treasury yields (FT Alphaville)
• How Shape-Shifting Banks Foil Dodd-Frank Act (Bloomberg) see also Banks Seen Dangerous Defying Obama’s Too-Big-to-Fail Move (Bloomberg)
John Cassidy on Inequality 101: The Picket Fence and the Staircase (New Yorker)
• What Do The Titanic And Your Smartphone Have In Common? (Forbes)
• GE Isn’t Grandfather’s Company in Silicon Valley Plant (Bloomberg)
• Evolution has given humans a huge advantage over most other animals: middle age (Washington Post)
It’s Official: Google Today Is Just Where Microsoft Was in 1999 (Forbes) see also Web freedom faces greatest threat ever, warns Google’s Sergey Brin (Guardian)

What are you reading?
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Green Light for Hedge-Fund Ads Means Caution on Main Street

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.

13 Responses to “10 Tuesday AM Reads”

  1. KeithOK says:

    My guess for the Smart Phone and Titanic was that neither should be immersed in water, but that was before I saw the article came from the Mercatus Center.

    The answer, of course, is “Keep the Government out of my RF spectrum!”

  2. Arequipa01 says:

    http://www.bloomberg.com/news/2012-04-16/argentina-to-send-bill-to-congress-for-control-of-51-of-ypf-1-.html

    Good basic reporting on the Argentina/YPF deal. I must urge those interested in this story to consider the following:

    1. Fernández has chased both YPF and Petrobras out of Neuquén.
    2. Obama Administration-DOJ has recently supported República de Argentina in case over payments on defaulted bonds bought up by a vulture fund (Ellison, I think). Case in Federal Court, Judge Griesa.
    3. ExxonMobil has not been chased out of Neuquén-(nor Apache).
    4. Fernández had a very friendly meeting with President Obama and Secretary Clinton in Cartagena, this past weekend.

    Also, different issue- Peru, Conga report will be made public today. It will be positive for gold miners- one in particular- Estrella Gold- in the area- not a Newmont operation may get an unusual bump.

    http://www.google.com/finance?q=CVE%3AEST

  3. machinehead says:

    From the WSJ article ‘Green Light for Hedge Fund Ads’:

    Thanks to a little-noticed provision tucked into the just-signed jobs bill, hedge funds may soon be making a bold move into marketing—and the mainstream.

    The JOBS Act, signed by President Obama on April 5, lifted a decades-old restriction on how hedge funds can go after new investors.

    Supporters of the bill “talked about helping companies raise money,” says Barbara Roper, director of investor protection for the Consumer Federation of America. “Not one word was said during the debate about the effect on hedge funds—and I followed it pretty obsessively.”

    Barbara Roper has a point. The text of the American Jobs Act of 2011 is posted in full. Nothing in the Table of Contents gives any clue about changing the rules for hedge fund marketing:

    http://thomas.loc.gov/cgi-bin/query/z?c112:S.1549:

    Only Section 412, “Special Rules for Partners Providing Investment Management Services to Partnerships,” appears to touch on hedge funds. And again, in the actual text of this section, nothing explicitly refers to hedge fund marketing:

    http://thomas.loc.gov/cgi-bin/query/F?c112:1:./temp/~c112EQKxJA:e441123:

    What a mystery! You’re a lawyer, BR. How is it possible that the Jobs Act ‘green lights hedge fund ads,’ when the provision can’t be found in the table of contents or the text, and even clued-in lobbyists didn’t know about it?

    Concerned citizens would like to know! Rule of law, or what?

  4. DeDude says:

    Those Bloomberg articles on bank regulations were kind of depressing. Not only are policy makers and regulators fighting the last war; they are losing the last war.

    The idea that if somehow the stock and bond holders were convinced that there would be no bail-outs, then the companies would stop taking inappropriate risks is absurdly naïve – and directly in conflict with observed reality. Both stock and bond holders in some of the companies of the past crisis had severe losses. Yet a few years later they are gearing up to take inappropriate risks again. The people who are making decisions are more than willing to make a gamble, or forced to do so because their competitors make a gamble. If the gamble pays out they will get huge fat bonuses, if it does not someone else will lose a lot of money – under those conditions how can they NOT gamble. The idea that somehow stock or bond holders have the ability to control risk taking in a big bank, is beyond naïve.

  5. willid3 says:

    where do we get taxes come from? and where do we spend the money raised?
    DO AMERICANS PAY A LOT OF TAXES?

    This is an impossible question to answer definitively. As Michael Linden of the Center for American Progress pointed out to me, the U.S. ranks in the bottom five among OECD countries in total government revenue as a share of GDP. We’re just above South Korea and Turkey. We tax less than Australia, Canada, and just about every country in Europe. A fun way to look at this issue is to compare total tax rates on $100,000 of gross income across the developed world. Once again, we’re behind most advanced countries when it comes to taxing even middle-class income.

    http://www.theatlantic.com/business/archive/2012/04/how-we-pay-taxes-11-charts/255954/

  6. Wiggs says:

    Pretty sound case for higher taxes on the wealthy made by David Levine formerly of Bernstein

    http://www.washingtonpost.com/business/economy/ezra-klein-a-rich-guys-case-for-higher-taxes/2012/04/16/gIQAQLoLMT_story.html

  7. mathman says:

    here’s a good, quick read for yez:

    http://guymcpherson.com/2012/04/the-uncertainty-principle/

    (excerpt)

    “Yet uncertainty has a future. You cannot look at this world, even through hunter-gatherer eyes, and not come to the conclusions that industrial civilization is constructed of the too solid flesh of imagination, and that industrial-era humans are animal-imagination hybrids, the result of an unnatural selection taking place ever since humans started messing about with reality. The extent of that evolution can be seen, not just in the fantastical, anthropomorphized creatures running for president, but in the image of the human being that is reflected back from a blank computer screen.

    Recent brain research has indicated that measurable physical changes result when people start spending five or six hours a day playing videogames or surfing the Internet. Parts of the brain shrink and other parts expand, and attention spans, relations with other people, need for stimulation, and language usage all change. It’s not hard to envision the computer screen as the narrow part of an hourglass, and as time passes, the reality of the Internet side of the screen sifts through to the brain of the computer user, creating a perfect replica of itself on the other side, in among the folds of the wetware.

    So a symmetry emerges between realities, one that gives a bit of credence to those philosophers of idealism, who hold that all reality is the electrical charges that rocket from neuron to neuron in our skulls. That’s a dangerous position, one that supports magical thinking — if you believe, it will be so, in the Matrix — but consider that the process can go both ways, and what exists in the folds of the brain can, with enough thought and effort, be painstakingly created elsewhere. Something a lot like magical thinking has created the world of artifice and algorithms we live in, and there’s no going back to a world where imagination and its products don’t exist. Like it or not, we have to live in a world that imagination has created.

    It doesn’t take a scientific study to know that humanity has fouled its nest by thinking the unthinkable into being.

    But we still have a world to work with, however sullied, and for the moment let us imagine the one that would result if our hopes for posterity prevail: aside from a radically different climate and the occasional nuclear accident, gross national products will resume their rise, fueled by a boom in solar energy and green technology. There will be stunning advances in home entertainment systems, heroic medical achievements, ever more precise weapons — collateral damage and dissent may simultaneously become a thing of the past — and whole cities under glass, and franchise outlets for everything. Wilderness ecologies will be finally be assigned a cultural and economic value, as they will have to be painstakingly reconstructed inside ultraviolet- and acid rain-proof structures. Population growth will continue, helped along by advances in genetically-modified wheat and rice, macro-engineered algae farms, and new hive-like cities. Exponential efficiencies in resource and energy use and communication will put the lie to Jevons’ Paradox. Longevity drugs will allow Social Security recipients to get back to work as productive centenarians. A gentle inflation will erase all long-term debt.

    Or not. Maybe we’ll end up turning the earth into George F. Kennan’s nightmare, a radioactive desert moonscape, one where starving humans are confined to caves and ruins and drink foul water and don’t look too closely at the meat they’re eating, and human knowledge and technology diminishes with each burned book and broken machine and dead battery.

    Where can you go — even in your imagination — if you’ve got grandchildren in this world?

    It’s a measure of human adaptability that should climate change and civilization’s collapse be spread over fifty or a hundred years, people will go about their daily routines without much awareness that their yesterdays were different than their todays. They may remember visiting the unshielded outside, but it won’t be home to them. Home will be the dark basement of an abandoned building when it isn’t a subway tunnel, but it will have its comforts. Lifespans will shorten and chromosomes will be ionized, but not so much that people won’t have the occasional normal child, and those children will have the occasional normal child.

    Even were we to project the darkest trends forward to that day when the last band of humans is fighting the last band of cockroaches for the last cache of civil-defense crackers, I’d put my money on the humans. And I’d make a side bet that shortly thereafter, the cockroaches would be a domesticated food-source. And one last wager: I’d bet that the children of that last band, wandering with cockroach-breath through the dark underground corridors of a ruined city, will look up through holes in the concrete, see the too-bright glint of the morning sun, and will greet the new day with awe, and joy, and wonder at the miracle of their existence.”

  8. VennData says:

    1-800-4HEDGIES!

    And you thought nobody really slipped things into bills. Ha.

  9. machinehead says:

    @Arequipa01 — interesting observations on YPF; thanks. On the flip side, though, Obama just took the unprecedented step of suspending Argentina from GSP trade preferences, leaving Argentina in the company of Syria, Belarus and north Sudan as the only countries not eligible:

    http://www.bbc.co.uk/news/business-17517838

    The ‘no-agenda’ meeting of Obama and Kirchner in Cartagena sounded considerably more ambivalent, according to the Argentina’s U.S. ambassador:

    Los dos presidentes, dijo el diplomático, “trabajan con el objetivo de optimizar una relación que, como todas, supone momentos buenos y otros menos buenos, según las circunstancias”.

    http://www.eluniversal.com.mx/notas/841467.html

    Now that YPF is halted on the NYSE, and institutional shareholders such as Blackrock, Vanguard and Fidelity stand to lose a ton of money in Argentina’s gunpoint expropriation, I suppose the U.S. is going to be view this fresh insult as ‘menos bueno’ if not ‘bastante peor.’

  10. ConscienceofaConservative says:

    Suez Canal traffic for clues on global growth

    http://alphanow.thomsonreuters.com/2012/04/chart-of-the-week-global-trade-set-for-a-downturn/

  11. Arequipa01 says:

    Thanks machinehead. Good info.

    Do you suppose she got mad because she didn’t get the support on Las Malvinas she was expecting?

    http://www.republica.com/2012/04/15/cristina-fernandez-se-retira-de-la-cumbre-de-las-americas-porque-no-se-habla-de-su-reclamacion-de-las-malvinas_479371/

    Odd behavior, piss off España, Great Britian, US, and Brasil? What’s next? Maybe slap the Pope?

  12. machinehead says:

    @Arequipa01 — from your link:

    [Cristina Fernandez Kirchner] didn’t attend the gala dinner on Saturday night offered by the summit’s host, Colombian President Juan Manuel Santos. Argentina was represented by its Foreign Minister, Hector Timerman.

    Both Cristina F. Kirchner and her late husband Néstor were notorious for blowing off previously scheduled meetings with important personages, especially foreigners. They are just strange, strange creatures, with cognitive processes that would be frighteningly alien to you and me.

  13. Giovanni says:

    RE: New era of bad money. Is someone willing to go over why Govt. spending is said to have a zero or negative multiplier effect yet every time someone mentions reducing Govt. spending it seems to be automatically added that this will reduce growth? I get that there are at least two schools of thought on this but it seems these two ships have been passing each other in the night long enough to have bumped into each other before now. How do you see this difference resolved?