My morning reading material:

• Damned if you do, damned if you don’t: MBS trustees and put-backs (Reuters)
• U.S. Millionaires Told Go Away as Tax Evasion Rule Looms (Bloomberg)
• Builder Is Constructing REIT for Home Rentals (WSJ) see also Let’s go buy a house! (Reuters)
• Getting Our Arms Around Labor Force Participation With Two Fed Studies (Next New Deal)
• Why France Has So Many 49-Employee Companies (Businessweek)
• It’s All About the Fraud: Madoff, MF Global & Antonin Scalia (Institutional risk Analyst)
• Two Yahoo Political WTFs?!?
…..-Richard Mourdock defeats Sen. Dick Lugar in Indiana (Yahoo News)
…..-Private Jobs Increase More With Democrats in White House (Yahoo Finance)
• ‘One in six cancers worldwide are caused by infection’ (BBC News)
• Jon Stewart, Religion Teacher Extraordinaire (Religion and Politics)
• The brain… it makes you think. Doesn’t it? (The Guardian)

What are you reading?


Gold Loses Its Sparkle

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.

21 Responses to “10 Mid-Week AM Reads”

  1. Hantra says:

    Why is it a “WTF” that Lugar got beat? He doesn’t even LIVE in Indiana, and he’s Obama’s “favorite” Republican Senator. McCain ran ads for him for goodness’ sake! Combine all that with his record, and I don’t see a “WTF”. We all saw that coming.

  2. SOP says:

    Re. “It’s All About Fraud…”

    But…but… the bankers did not know what was happening… it is all a terrible mistake !!!

    No Really !!!


    HSBC Triples U.S. Team to Step Up Battle on Money Laundering

    “I often would see information and I knew the financial institution had no idea and could have no idea illicit money was moving through their institution,” Levey said of his time at the U.S. Treasury.

  3. egreen711 says:

    I love the article about France, complaining that labor costs are too high, too much labor regulation. I guess that is the mantra for every single country in the world. Everything is blamed on those greedy, lazy workers, who are supposedly coddled by the government. Is there any better argument for how inhumane our economic system really is?

  4. willid3 says:

    the problem with government is that it seems to care about its citizens lives. and we must get it out of the way. plus we can’t have globalization, democracy and national sovereignty all at the same time. as they are mutually incompatible.

    I have an “impossibility theorem” for the global economy that is like that. It says that democracy, national sovereignty and global economic integration are mutually incompatible: we can combine any two of the three, but never have all three simultaneously and in full.

    This position is ultimately contradictory, since its proponents argue for the Reaganite “get government out of the way” position, when commerce depends on rights defined by and enforced by the state (thought experiment: would US companies have built factories in China, a Communist country which could expropriate assets, if the US were not a military superpower?)

    To see why this makes sense, note that deep economic integration requires that we eliminate all transaction costs traders and financiers face in their cross-border dealings. Nation-states are a fundamental source of such transaction costs. They generate sovereign risk, create regulatory discontinuities at the border, prevent global regulation and supervision of financial intermediaries, and render a global lender of last resort a hopeless dream….If we want more globalization, we must either give up some democracy or some national sovereignty. Pretending that we can have all three simultaneously leaves us in an unstable no-man’s land.

  5. willid3 says:

    do we really need data to make policy as a few would argue?

  6. James Cameron says:

    “The question isn’t whether the crowds in Paris celebrating the return of good old-fashioned socialism will get what they want — they won’t. The question is whether Hollande will row back from his campaign pledges quickly enough to avert disaster.”

    Hollande Must Betray His Supporters to Save Them

  7. farmera1 says:

    Concerning the labor participation rate. I don’t know how this figures in or really the impact. But in this small part of the world (town of about 12 thousand people) there have been thousands of Hispanics return home. When there are no jobs these people headed home. I’m sure many were here illegally.

    Don’t really know how the reverse migration impacts the labor participation rate but across the country it has to be millions that have returned home.

    Just a thought.

  8. steveh18 says:

    Better Job Growth with Dem in White House = WTF ? You really believe that “Job Creator” bunk ?

  9. VennData says:

    “… “Bank accounts, investment accounts, mortgages and insurance policies are being refused to American clients, and those with accounts are seeing them closed or have been threatened with closure,” Marylouise Serrato, executive director of American Citizens Abroad, a Geneva-based organization, wrote in an e-mail. U.S. citizens who live in countries that aren’t served by U.S. banks may find themselves unable to bank at all, and implementation of the law in its current form could cause collateral damage to American businesses abroad, she said.“Americans either will not be allowed to enter into international partnerships or live and work overseas, and will be replaced by foreign nationals who do not have these limitations,” Serrato wrote. “The extensive reporting requirements of Fatca will be destructive to those who wish to do business internationally as well as to those Americans who are legitimately living and working overseas.”

    This is laughable. You wanna make money, set up a 286 machine to keep track of a few more pieces of info and send it along and your non-US bank will make a killing serving Americans. You think Citibank London is turning away Americans because the company has to send a 12K file to DC four times a year? Laughable.

  10. rd says:

    Something priceless to add to your WTF list:

    Can we go the GE method of CEO selection where the presidential losers get shipped off to the country of their choice? GE has done that successfuly by having their non-selected CEO contenders go to other companies, sually as CEO.

    Does this mean that the Republicans are officially becoming the party of foreign bank accounts and tax evaders since they are concerned that so many people don’t pay income tax? We already have senators (Lugar) who move out of the state that the represent, so why not a President who becomes a citizen of another country? Lucerne would be so much more pleasant to govern from than DC, especially in the summer time.

  11. Jojo says:

    Bloomberg Businessweek
    The Great Fall of China
    May 02, 2012

    Qi hu nan xia, goes a Chinese proverb: When one rides a tiger, it is difficult to dismount. For the leaders of China’s 1.3 billion people, the import is clear. Stay on the tiger’s back, issue commands, and hope like hell the beast doesn’t turn on you. Over the last quarter-century that approach has served the mandarins of the Communist Party well. China became an economic marvel and staked a claim as the world’s next superpower. Civil liberties, social development, environmental husbandry, and political transparency were subordinate to the imperatives of growth. Increasing complaints about the avarice and gangsterism of government officials could be dismissed as local problems as long as an enlightened elite was thought to be guiding the state with a steady hand. Even when under pressure to reform, China’s leaders could reassure themselves that their grip on power remained secure.

    Not anymore. The Communist Party faces the most serious threat to its authority since the Tiananmen Square uprising of 1989. The case of Bo Xilai alarms China’s leadership precisely because it weakens the impression of strength and competence they have labored so hard to maintain. A tough-on-crime princeling about to be welcomed into the ruling elite is suddenly accused of being corrupt; his wife is implicated in the murder of a British business associate; the family’s fortune, totaling over a hundred million dollars, exposes the wealth high-ranking bureaucrats have amassed at the public’s expense.

    These episodes have revealed to the world—and to a sizable portion of the Chinese people—a culture of greed, violence, and deceit at the highest levels of government. The Communists’ power is not in imminent danger, but their legitimacy is.

  12. Jojo says:

    Want total net access on your estate?
    Sidewalk pavement stones offer Bluetooth and wifi
    iPavement is a sidewalk pavement stone that serves as a wifi hotspot with Bluetooth connectivity.

  13. Mike in Nola says:

    @VennData: you are showing your age with a reference to a “286 machine” :) What’s that, mid-1980′s?

  14. ilsm says:

    democracy, national sovereignty, globalization.

    Globalization requires banks and current accounts, money before the people as in the euro zone.

    Globalization is compatible with neither national sovereignty nor democarcy. The banks will subvert both.

    The problem [in euro zone] is the members states might rebel at yielding soveriegnty, and the will of their people who are no longer an electorate, to be exploited by the bankers running globalization.

  15. Lyle says:

    It should be noted that the Reuters article points out that it is more investment accounts that are affected than transaction accounts by FATCA as a number of the banks say savings and checking is not affected (of course its harder to hide profits in these). Just like I don’t see mention of closing credit cards domicled offshore. (plus the overhead for a bank to report any interest is not very great, its the investment accounts that cost, in the US consider that 1099s for banks come by jan 31, while brokerage accounts are late feb and partnerships (k-1) etc tend to be up to april 15.

  16. AHodge says:

    Volcker testimony bullets from DJ
    all you need to know about US financialreform on a half page??

    Volcker: Rule Writing Will Determine Effectiveness Of Some Parts Of Dodd-Frank
    Volcker: Financial Centers Must Have Consistent Approach Toward Bank Failures
    Volcker: Too Big To Fail Poses Greatest Structural Challenge To Financial System
    Volcker: Important For New Bank Resolution Process To Be Ready
    Volcker: Must Plan For Mortgage Market Without Fannie, Freddie
    Volcker: Need For Reform In Mortgage Market Is ‘Self-Evident’
    Volcker: Money Market Mutual Funds Hidden In Shadow Banking System
    Volcker: Regulators Will Soon Turn To Creating Supervisory Manuals, Enforcement Tools
    Volcker: Fed Should Designate A Vice Chair For Supervision
    Volcker: Must Safely Structure Money Market Fund Industry
    Volcker: Money Market Funds Vulnerable To ‘Disturbing Runs’

  17. rd says:

    Interesting story of hope regarding shareholder revolts and executive pay:

    This is another aspect that the small investors have been watching as proof that the markets have been rigged against them. Just one more area small investors are waiting for improvement in. It appears that the institutional investors are starting to pay attention.

  18. philipat says:

    Given the erosion of Constitutional rights in The US (Specifically the 1st, 4th, 5th and 14th Amendments) and Obama’s Executive Order allowing Nationalisation of essentially all assets (During times of National emergenct; the war on terror for instance?) if I were a US citizen I would want some of my assets beyond the reach of the US Government.