My early morning reads to start the week:

• Worst Market Since Reagan Greets Obama Before Election (Bloomberg)
•  JPM Whale-Watching Tour: Oh, so now it’s a $5bn loss? (FT.com)
• More Earners at Extremes in New York Than in U.S. (NYT)
• Euro Bonds Would Cost Germany Billions (Spiegel.de)
• What the Chinese Want (WSJ)
• As regulators set rules for equity-based crowdfunding, investors prepare for its impact (Washington Post)
• Facebook IPO Miscellaneous Charts (Nanex) and (Nanex)
Walking a Treasury Tightrope (WSJ)
• Alibaba Buys Back 20% Stake From Yahoo for $7.1 Billion (Bloomberg)
• Diminishing marginal benefits of economics (Pannell Discussions)
• Four Ways Happiness Can Hurt You (Greater Good)

What are you reading?

 

A permanent precedent

Source: FT.com

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.

18 Responses to “10 Monday AM Reads”

  1. VennData says:

    GOP Problem: Their voters are white, aging and dyng off.

    http://www.cnn.com/2012/05/21/politics/gop-census-latino/index.html

    To get the off-white youth vote the GOP lie machine could say ‘Obama wants to take away your smartphone.” or “Obama was more than half white!” Etc…

  2. Mike in Nola says:

    Saw two references a hitherto obscure JPM risk that might be where the real danger is: JPM has big exposure to the European mortgage market. Bloomberg has an article here that portrays it as not too big:

    http://www.bloomberg.com/news/2012-05-20/jpmorgan-s-home-loan-debt-in-europe-increases-anxiety-mortgages.html

    However, Hussman’s comment of today (haven’t read him in awhile) quotes the FT as saying that JPM owns about $100B in asset backed securites in addition to deriviatives and he also quotes the British Bankers Assn saying that as of late 2010, JPM had taken 45% if the British mortgage bonds created in the previous year. Considering that the Tories have failed at turning around the economy and their cuts are likely to make things worse (except for the 1%, of course) and the British housing market has been showing signs of rolling over (their bubble has never popped), this could be where JPM’s big risk is.
    http://www.hussmanfunds.com/wmc/wmc120521.htm

  3. Jim says:

    Rory Sutherland ‘s TEDx Athens talk about persepective and reframing.
    http://www.ted.com/talks/lang/en/rory_sutherland_perspective_is_everything.html

    A good talk on how reframing an issue can help reveal our biases.

  4. DeDude says:

    Lets make sure we do not have any data, it could end up challenging our opinions.

    http://www.nytimes.com/2012/05/20/sunday-review/the-debate-over-the-american-community-survey.html?_r=1

    Perhaps the best documentation of what a failed education system can do and what morons we (or should I say Florida teapartiers) elect to congress is this gem of an argument against collecting the data:

    ““especially since in the end this is not a scientific survey. It’s a random survey.”

    Oh what lack of knowledge can do to what the human brain feeds into the human mouth.

  5. whydtinigo says:

    13 Disturbing Facts About McDonald’s,
    Goldman Fucks, and other assorted esoteria at
    http://whydtinosbrowser.blogspot.com/

  6. NoKidding says:

    Re: Yahoo/Alibaba article

    I’d be more comfortable investing in an Alibaba IPO than the recent FB IPO. In my oncoming global recession/depression view, both look like they will suffer, but I like Alibabba’s potential to generate future revenue if it survives. Need more data than that story provided, like what percent of Chinese consumers buy through what online retail portals, Internet usage growth rates and geographical expansion. I guess one of the dangers is a China-based eRetailer wouldn’t be necessary if the government gave the existing American ones free access to the market.

    The percentage of Chinese/Indians who do not yet have cell phones has always been the vague unrealized future hope hook of my native industry. Now that that volume ramp started, margins are miniscule. At some point in history the US was a 50 percent agrarian pre industrial. About 41 percent of the US workforce was employed in agriculture in 1900, that does not feel like ancient history. In 30 years, what wil the median Chinese standard of living relative to the US standard?

  7. davefromcarolina says:

    “However, my research with Sheri Johnson and Dacher Keltner finds that when we experience too much pride or pride without genuine merit, it can lead to negative social outcomes, such as aggressiveness towards others, antisocial behavior, and even an increased risk of mood disorders such as mania. Work underway in my laboratory, led by graduate student Hillary Devlin, supports the tantalizing notion that self-focused positive emotions like pride may actually hinder our ability to empathize, or take another person’s perspective during difficult emotional times.”

    No kidding? You mean Pride really is a sin? Well I’ll be damned. ;-)

  8. streeteye says:

    $5b loss? do we hear $6b? $7b?

    JPMorgan Chase loss only going to get worse
    http://money.cnn.com/2012/05/18/markets/jpmorgan-loss/index.htm

    Of course, those rumors might come from competitors. Citi analysts call the reports of bigger losses overblown.

    CITI: Reports Of JP Morgan’s Mounting Trading Losses Are Way Overblown
    http://www.businessinsider.com/citi-were-super-bullish-on-jp-morgan-and-2012-5

    Maybe some friends from Dimon’s old Citi stomping grounds are maneuvering to join a real bank.

  9. SOP says:

    Opaque Oil Markets :

    Marketing “Spin” or just “different points of view” ?
    —————–
    Is Russian Oil Production Plummeting?

    http://www.forbes.com/sites/markadomanis/2012/05/20/is-russian-oil-production-plummeting/

    vs

    Saudi Arabia knocks off Russia as world’s biggest oil producer

    http://www.thenational.ae/thenationalconversation/industry-insights/energy/saudi-arabia-knocks-off-russia-as-worlds-biggest-oil-producer

  10. Bob A says:

    Downtown Seattle condos are finally filling up
    The glut of condos that hit downtown Seattle right during the real-estate downturn is disappearing as buyers move back into the market.

    http://seattletimes.nwsource.com/html/businesstechnology/2018251763_condos21.html

  11. James Cameron says:

    Now this is real college debt . . .

    “The U.S. Supreme Court left intact a $675,000 jury verdict against a college student who downloaded and redistributed thousands of songs from the Internet without paying.”

    Music Downloading Damages Left Intact By U.S. High Court

    http://goo.gl/XlySm

  12. Jojo says:

    May 21, 2012
    Ring of Fire Eclipse: 2012

    A rare annular eclipse – a ring of sunlight as the new moon, passing between Earth and sun, blocks most, but not all, of the sun’s disc. It is striking to see. Differing from a total solar eclipse, the moon in an annular eclipse appears too small to cover the sun completely, leaving a ring of fire effect around the moon. The eclipse cast its shallow path crossing the West from west Texas to Oregon then arcing across the northern Pacific Ocean to Tokyo, Japan. (Thanks to all Big Picture viewers for sending us your images of the eclipse.) — Paula Nelson (49 photos total)

    http://www.boston.com/bigpicture/2012/05/ring_of_fire_eclipse_2012.html

  13. denim says:

    • Worst Market Since Reagan Greets Obama Before Election (Bloomberg)
    Is Bloomberg in an alternate universe or can I not read charts?

    http://finance.yahoo.com/echarts?s=^DJI+Interactive#symbol=^dji;range=5y;compare=^djt;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

    http://finance.yahoo.com/echarts?s=^DJI+Interactive#symbol=^dji;range=my;compare=^djt;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

    ~~~

    BR: They are referencing prior 12 months

  14. Frwip says:

    Uh oh. Incoming defaults on commodity markets.

    ” China Buyers Defer Raw Material Cargos

    Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and — in some cases — defaulting on their contracts, in the clearest sign yet of the impact of the country’s economic slowdown on the global raw materials markets. ”

    http://www.cnbc.com/id/47498211

    Early sign of 3rd or 4th quarter moment of wheeeeeeeeee ?

  15. willid3 says:

    more JPM

    seems that they have a lot on deposit (about $1 trillion). but they only loan out about 64% of that, and sending the rest to London (you know that famous hedging operation).

    http://blogs.reuters.com/felix-salmon/2012/05/21/chart-of-the-day-jp-morgans-excess-deposits/

    now maybe just maybe some of this was because they lack demand for loans. but maybe it was because they could make a lot more money on the hedges, than the loans?

    http://blogs.reuters.com/felix-salmon/2012/05/21/chart-of-the-day-jp-morgans-excess-deposits/

    of course that was before the hedge operation cratered with a 2 billion (3 billion, 4 billion, 5 billion??? or more) hole in the balance sheet

    http://blogs.reuters.com/felix-salmon/2012/05/21/chart-of-the-day-jp-morgans-excess-deposits/

  16. willid3 says:

    and maybe Dimon should get off the NY fed?

    http://baselinescenario.com/2012/05/21/jamie-dimon-should-resign-from-the-board-of-the-new-york-fed/

    where he sits on the compensation committee for bank execs??