My afternoon train reading:

• S&P 500 Beating Gold Most Since 1999 on Positive Earnings (Bloomberg)
• A Paradox: Avoid Correlation by Following the Trends (All About Alpha)
• Investors Are Looking to Buy Homes by the Thousands (NYT) see also Manhattan Apartment Prices Decline (Bloomberg)
• The God of Gamblers: Why Casinos Are Moving to Macau (New Yorker)
• ‘Apple Fever’ Prompts Predictions of $1 Trillion Value (Bloomberg) see also Apple and the Return of the Gimmicky Price Targets (TRB)
• Pensions Find Riskier Funds Fail to Pay Off (NYT)
• No Deal: Why you shouldn’t believe the theory behind Groupon’s business model (Slate) see also Why Groupon is poised for collapse (Venture Beat)
• How China Steals Our Secrets (NYT)
• Nobel Winner Eric Kandel: ‘The Age of Insight,’ Memory, the Holocaust, and the Art of Vienna (The Daily Beast)

What are you reading ?


Choices Shrink for Subprime Set

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.

15 Responses to “10 Tuesday PM Reads”

  1. Francisco Bandres de Abarca says:

    For those of us in the D.C. area, here’s a reception you may wish to attend on April 17th–the Space Shuttle Discovery will be arriving at Dulles (weather permitting), piggybacked on the 747, for it’s eventual installation at the Udvar-Hazy Center (Smithsonian annex in Chantilly).


    Casinos are moving to Macau? Let ‘em, I say. The product of a casino is customer losses. Yeah, yeah, entertainment industry, yada yada. Baloney.

    China steals our secrets? Next thing you know, we’ll be learning that this internet thing is a non-secured channel.

    How ’bout that Margaret Brennan this morning? [parabolic whistling sound] (Sorry, it’s in me, and it’s gotta come out.)

  2. theexpertisin says:

    Investors Buying Homes By The Thousands:

    Buying thousands of foreclosed homes, then fixing them and renting them to many who will tear them up and then stop paying rent? Who are they trying to fool? The bigger the residential rental home, the more folks who will cram in and destroy the place, with no one in the area minding the store.

    There is no decent business model here – except to remarket the homes eventually to novice investors in the old pump and dump rehab real estate fraud. Or to sell to folks unsophisticated folks on the Land Contract scheme, assuing they default (and the contracts are written to almost guarantee this will occur) so another sucker will opt to purchase the home two years down the road.

    We saw lots of that from the 1990s-2007 in our urban areas.

    And as for the “lucky” homeowner who lives next door to one of these real estate syndicate’s foreclosed rentals: Good luck, which will morph shortly to “For Sale”.

  3. Doofus says:

    The ever-increasing Apple valuations coming from analysts strike me as a bit bubbly. Not the kind you drink from a glass.

  4. willid3 says:

    middle class making no progress? seems like there hasn’t been any improvement in those graduating from college. which will lead to an improved economy.

    other might have made some improvement. but some of those stats are not exactly what they claim (one country counts industrial engineers as engineers)

  5. willid3 says:

    the same problems that the pensions are seeing are also going (if not already) happen in 401k and iras. since they all make ‘investments’

  6. willid3 says:

    banks (and others) will sue credit card holders even for debts they dont have. because most can’t contest it

  7. willid3 says:

    housing might get a 10% decline?

    will it be a horse race between housing decline and the decline in gas usage?

  8. formerlawyer says:

    @Francisco Bandres de Abarca Says:
    You may want to look at these pictures:

  9. willid3 says:

    the budget gimicks

    Often, borrowing was disguised as an asset sale so that the borrowing receipts were classified as revenues rather than debt.
    One classic form in which accounting devices operate is through “hidden borrowing.” In Europe, governments sometimes took over the pension plans of private companies or public enterprises.

    In the short term, the government gained assets that appeared to reduce borrowing; but in the process it incurred a liability for future pension payments that was not immediately apparent on the government’s books.

    Another instance of hidden borrowing involves currency swaps. The trickery involves cases where a nation specifies borrowing and repayments in foreign currencies at different exchange rates. Something like this got Italy into financial trouble some years ago and Greece more recently, according to the article in The Times.

    you know

    a lot of business used these gimmicks too!

  10. VennData says:

    The pension funds that get conned by high-priced money managers should have their boards retired. These people are ignorant… Mr. Wilbanks thinks he’s special…

    When asked about the higher fees, Mr. Wilbanks, the fund’s executive director, said, “We believe the outperformance from moving into these categories can justify the additional fees.”

    …he isn’t. He should be removed. All you need is to buy index funds, split between equities and bonds. Then rebalance once a year. The pension and endowment funds who choose that route will outperform their peers, over the long run. To do anything else is showing ignorance of the realities of capitalism.

  11. nofoulsontheplayground says:

    Struck down by a covert QE

    Highly regarded US economist Lacy Hunt, who is executive vice president of Hoisington Investment Management, which has $US5.6 billion in assets under management, argues that the US central bank is now wary of launching a new quantitative easing program – already dubbed QE3 by the markets – because it is increasingly aware of the negative consequences of its previous QE strategies.

    In an interview with Business Spectator, Hunt, who was previously the senior economist for the Federal Reserve Bank of Dallas and the chief US economist for HSBC, argues that we’ve not only had QE1 and QE2, but that there was an additional stealth QE in early December last year. He points out that at one point the US central bank expanded its balance sheet by $105 billion in order to make loans to the European Central Bank. Although this stealth QE wasn’t as large as QE1 and QE2, it was still a very sizeable amount.

    According to Hunt, QE programs always follow a similar pattern…