The latest interesting reading material from the tabloids:

The Long-Term Argument for Dow 20,000 (NYT) Perhaps, but from a lower level
• Bank of England, Pushing for Less Financial Regulation, Fought Libor Oversight (WSJ) see also Two-thirds of Dodd-Frank still not in place (CNN/Money)
Nocera: Financial Scandal Scorecard (NYT)
• Euro exit and depreciation would bring economic gains (Telegraph)
Zweig: Why Your Brain is Killing Your Portfolio (WSJ) see also A Double Dip for Voting? (WSJ)
• Lots of MSM shifts these days:
……-Dave Calaway to USA Editor in Chief; A final salute (Market Watch)
……-A New Boss For NBC News, MSNBC and CNBC (Media Decoder)
……-Aaron Task is Yahoo Finance’s Editor-in-Chief (Capital NY)
……-Dan Gross is back at Newsweek (TBP)
• Our Ridiculous Approach to Retirement (NYT)
• Into the Bailout Buzz Saw (NYT) review of Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street
• The Customer as a God (WSJ) Businesses today tend to herd customers as if they were cattle, but a revolution in personal empowerment is under way—and buying will never be the same again.
• How to Write a Bestselling Business Book (BusinessWeek)

What are you downloading?

The Striking Price  

Source: Barron’s

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.

17 Responses to “10 Sunday Reads”

  1. mathman says:

    Great short (30 min) vid of David Stockman on today’s troubles:

    Highly recommended book:

    “Ted Trainer is one of the wisest, boldest, and most dedicated advocates of The Simpler Way. In 2010 he published a book called, The Transition to a Sustainable and Just World, and I have to say that it is one of the best books I have ever read in my life. If you only have time to read one more book in your life, consider reading this one. It speaks directly to our global situation and condition, and it does so with passion, humility, and penetrating insight. From cover to cover, its pages are positively alive with wisdom. I highly recommend that everyone gets a copy of this book, reads it, and then passes it on. Our world desperately needs this book.”

  2. johnl says:

    Suppose if your a contrarian the VIX may encourage you to build a short position.

  3. PeterR says:

    Well done, Dave Callaway! Best wishes for the new position.

    PS BR — “Callaway”

  4. mathman says:


    A Serious Challenge to Wall Street
    “omething very interesting is happening.

    There’s been so much corruption on Wall Street in recent years, and the federal government has appeared to be so deeply complicit in many of the problems, that many people have experienced something very like despair over the question of what to do about it all.

    But there’s something brewing that looks like it might be a blueprint to effectively take on the financial services industry: a plan to allow local governments to take on the problem of neighborhoods blighted by toxic home loans and foreclosures through the use of eminent domain. I can’t speak for how well the program will work, but it’s certaily been effective in scaring the hell out of Wall Street.

    Under the proposal, towns would essentially be seizing and condemning the man-made mess resulting from the housing bubble. Cooked up by a small group of businessmen and ex-venture capitalists, the audacious idea falls under the category of “That’s so crazy, it just might work!” One of the plan’s originators described it to me as a “four-bank pool shot.”

    Here’s how the New York Times described it in an article from earlier this week entitled, “California County Weighs Drastic Plan to Aid Homeowners”:

    Desperate for a way out of a housing collapse that has crippled the region, officials in San Bernardino County … are exploring a drastic option — using eminent domain to buy up mortgages for homes that are underwater.

    Then, the idea goes, the county could cut the mortgages to the current value of the homes and resell the mortgages to a private investment firm, which would allow homeowners to lower their monthly payments and hang onto their property.”

    (much more)

  5. willid3 says:

    so a 401k has been revealed to be less effective than a pension. who knew! that professionals working at some full time, would be better than amateurs working part time would be better! but then it was never suppose to work that way. it was suppose to work with a pension and social security. it was never designed to do more than that. but it seems wall street saw big profits from every one piling in. and business saw a way to improve profits (a long with a way to increase the all important executive pay!) but dropping pensions. and now as the majority of people try to work till 70, only to find that their retirement looks a lot more like the poor house than golden years. and from personnel experience I can see that to be true. my mother in law spends more in a year than she ever earned. and without a long term care policy, I doubt it would even be close to comfortable. and without medicare, she would be in constant pain. given how badly 401ks have turned out, wonder how badly privatizing Medicare will turn out. and not really surprised at the how well banksters had captured their police (regulators), and how poorly they (regulators) were treated (bu Congress and others) to begin with (cant forget that they can make lots more working for wall street. sort of like if the police could go into working for the cartels that they could make more. almost sounds like Mexico doesn’t it?), that police can’t see any choices other than the ones wall street and banksters put forth. and since that capture has been going on for decades now, no matter who gets elected, and what they want to do, changing that culture is not going to happen, in less than a decade. if it will happen that fast.

  6. VennData says:

    Debating the Tax Burden
    “… As I mentioned in my initial post, health care for the elderly is not plausibly among the background conditions for thriving business. Nor is a system of old-age pensions among the relevant public goods…”

    How true, living, old people spend nothing in this country. Their progeny, freed from the burden of health insurance for ma and pa, burn that money they would have spent in that department rather than spend it. Furthermore I have never seen anyone looking at the Babyboomer demographic to make investments.

    Where does the Economist find these clowns?

  7. AnnaLee says:

    willid3, Well, when healthcare redivides into private vs. “county”, then getting taken to “county” will reemerge as the same as having one foot in the grave.

  8. Jojo says:

    The S&P Downgrade, One Year Later
    By Mike Dorning, John Detrixhe, and Ian Katz on July 19, 2012

    When Standard & Poor’s (MHP) stripped the U.S. government of its top AAA credit rating last August, predictions of doom followed. Mitt Romney called it a “meltdown” and warned of high long-term interest rates and damage to foreign investors’ confidence in the U.S. Republican Representative Paul Ryan of Wisconsin, who chairs the House Budget Committee, said the cost of mortgages and car loans would rise. Mohamed El-Erian, chief executive officer of Pimco, the world’s largest bond fund, forecast erosion in the standing of the dollar and U.S. financial markets.

    They were wrong. Almost a year later, mortgage rates have dropped to record lows, and the government’s borrowing costs have eased. Yields on 10-year Treasury notes–in effect, the interest rate the bond market charges the government on long-term credit–have plummeted from 2.56 percent just before the downgrade to 1.51 percent on July 17. The dollar is up 11 percent against an index of major currencies, and the Dow Jones industrial average has risen 12 percent. International investors’ enthusiasm for the U.S. has strengthened, with 46 percent of respondents in May’s Bloomberg Global Poll calling it the market with the most potential. Warren Buffett turned out to be prescient. “The U.S. is still triple-A,” he said in 2011 amid the uproar. “In fact, if there were a quadruple-A rating, I’d give the U.S. that.”

    The bottom line: A year after S&P took away the AAA credit rating of the U.S., almost every major economic indicator has improved.

  9. Jojo says:

    NY Times
    July 21, 2012
    The Jobless Won’t Forget Your Help

    SOME unemployed people in my local area recently received some jarring news: their outplacement counselor had been outplaced.

    Yes, the very person assigned to help them find a job was now out of a job, too. His firm, one of the largest outplacement service providers in the nation, was cutting back its staff.

    Seeing your outplacement counselor be laid off has to be disheartening. It’s like learning that your marriage counselor is getting a divorce, or seeing that your personal trainer has developed a weight problem.

    It’s just one example of confidence-rattling developments in the job market that make the unemployed question whether they will ever find the light at the end of the tunnel, whether there’s anybody left out there who can help.

    Because the ranks of the unemployed, the underemployed and the “so discouraged I’ve stopped looking” are still swollen from the Great Recession, we should all be asking ourselves this question: What can we do to help them?

    The sad fact is that we — and the companies we work for — don’t do enough.

  10. Jojo says:

    Click to the link to view the graphic. It is mind boggling! We need to get rid of these losers…
    The Doing-a-Lot-of-Nothing Congress
    Capitol Hill
    By Roxana Tiron and Kathleen Hunter on July 19, 2012

    Lawmakers have sent only 54 bills to President Obama so far this year, making it one of the least productive sessions on record. Most of the new laws are trivial.

  11. formerlawyer says:

    “The best we can say about economics is that we know what not to do; we have plenty of modern examples from African kleptocrats to totalitarian North Korea. A functioning modern economy needs respect for property rights; a government that is able to collect taxes and offer a social safety net; banks that allow the payment system to function; markets that allow businesses to raise capital and so on. Once those essentials are in place, whether the right top tax rate is 40% or 50%, the right interest rate is 1% or 5% is largely a matter of trial and error, and of political acceptability. ”

  12. willid3 says:

    AnnaLee Says:
    July 22nd, 2012 at 1:32 pm

    willid3, Well, when healthcare redivides into private vs. “county”, then getting taken to “county” will reemerge as the same as having one foot in the grave.

    and only the top 1% will be going to the private one. as it will cost a lot to get in to one.

  13. farmera1 says:

    Water, Irrigation and the Disappearing Ogallala Aquifer

    As I recently drove across the sand hills of Nebraska, it is truly an amazing sight. For hundreds of miles one sees huge rolling sand dunes made emerald green by a wonder of modern technology, center pivot irrigation. Without the irrigation, it appears nothing would grow, yet alone corn.
    Just wonder how long it will last. Farming has been stopped in parts of this country because even when there is water in the aquifer, it costs too much to pump it to the surface for irrigation. Sounds like we are running full bore into another brick wall.

  14. vachon says:

    If this Senate report on HSBC is anything like Sen Kerry’s report on BCCI (I’m dating myself here) it should make for some grimly juicy reading. I’ll dig into it in a few days and let you know (:

  15. willid3 says:

    wealth doesn’t trickle down. it doesn’t even stay in the country its earned it. it leaves!