My morning reads:

• Market Heats Up in Election-Year Augusts (Stock Trader’s Almanac) see also Are we in a Kids’ Market? (Market Watch)
• McKinsey: Allocations Will Rise Despite Sticky Fees (All About Alpha)
• Asian Millionaires Firing Banks Take Charge Of Own Wealth (Bloomberg)
• Economic Thinkers Try to Solve the Euro Puzzle (NYT)
• In Picking Facebook Shares, Repeating the Mistakes of the Past (DealBook) see also Facebook Losses Slice UBS Profits (WSJ)
• Measuring the Decline of American Entrepreneurship (New America)
• Indian Economy Has Power to Shock (WSJ) see also India Blacks Out From New Delhi to Kolkata as Grid Fails Again (Businessweek)
• Negative rates as a precursor to the death of banking (FT Alphaville)
• Why Siri Is Still the Future (Scientific American) see also Apple Rises As Bernstein Sees Stock Split, Dow Membership Ahead (Bloomberg)
• #twitterfail ethics & economics (BuzzMachine)

What are you reading?

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U.S. Profit Streak Hit by Global Weakness

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.

23 Responses to “10 Mid-Week AM Reads”

  1. dougc says:

    The death of Gore Vidal brought back memories of his arguments with Bill Buckley about economics/politics on Buckleys PBS show in the 1960′s. They obviously disliked each other but could argue without calling each other a communist or nazi or challanging the others intelligence. Contrast that with todays dialogue.
    Would loved to have seen them in a mud wrestling match.

  2. Oral Hazard says:

    Siri, find me a Scientific American article about Siri.

    Siri: I found some car shops near you.

    Siri, John Malkovich seemed to be having a full conversation with you on TV.

    Siri: Would you like me to search the Web for TB?

  3. Mike in Nola says:

    @dougc:
    well, they couldn’t always refrain from name calling. I’m old enough to remember seeing the famous “cryptonazi” incident at the 1968 convention. But, it was generally an era where there could be debate over issues and not simple repetition of slogans that we see today. Hard to imagine him on any of the controlled networks we have today. Can’t say I read many of his books. Liked him as a political commentator.
    Nice obit here:
    http://www.chron.com/news/article/Gore-Vidal-celebrated-author-playwright-dies-3752123.php

    One comment I always remember was in a Playboy interview where he shot down the idea that JFK would have kept us out of Vietnam. He said Kennedy was in trouble after the Bay of Pigs and made a remark about Vietnam to the effect that “I’ve got to go all the way with this one.”

  4. Lookout Ranch says:

    Here’s what I’m reading… It’s a good economic overview.
    http://www.healthsmart.com/PDFs/2012-Forum/Crowley-An-Executive-Perspective-on-the-Economy.pdf

  5. Mike in Nola says:

    Looks like the BP spill and dispersants may have disrupted the Gulf food chain in a way that won’t show up for years.

    http://www.nola.com/news/gulf-oil-spill/index.ssf/2012/07/bp_oil_spill_dispersants_may_h.html

    Almost like built in can kicking.

  6. willid3 says:

    i guess a lot of calls to customer service are not going through with India’s power be out?

  7. machinehead says:

    From the latest monthly commentary by Bill Gross:

    Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders. If GDP and wealth grew at 3.5% per year then it seems only reasonable that the bondholder should have gotten a little bit less and the stockholder something more than that.

    http://www.pimco.com/EN/Insights/Pages/Cult-Figures.aspx

    This statement parallels David Swensen’s assertion that he never wants to own corporate bonds, since management always will favor stockholder interests at the expense of bondholders.

    So how come Wall Street lore holds that bond analysts are the smart guys, compared to the thick-necked, beetle-browed crowd that man the equity desk?

  8. VennData says:

    Knight Capital IT Glitch

    http://www.foxbusiness.com/investing/2012/08/01/nyse-reviews-early-morning-trades/

    Yeah, pay those IT guys crap, outsource it, management is confident in our team….

    Enjoy your Third World Information infrastructure, designed by the ‘free market” to get us through the next quarter.

  9. gordo365 says:

    The weak Indian power grid and lack of extensive freight rail – really highlight the advantage the US has with a strong power grid and amazing freight rail system.

  10. VennData says:

    Another example of the politicians serving the old folks…
    http://mobile.nytimes.com/2012/08/02/world/asia/strong-yen-is-reinforced-by-japans-generation-gap.xml
    ‘… One big reason, analysts and some politicians say, is simple, if generally left unsaid: A high yen benefits Japan’s rapidly expanding population of elderly residents, even if it hurts other parts of the country…’
    You want to know why the ‘Tea Party’ Party passed Medicare Part D when they had total control of the White house, Congress and the Supreme Court? …and you think the GOP will dramaticallt cut spending… Hahahahahaha.

  11. thomas hudson says:

    dougc:

    to back up mike from nola, from the nyt obit today:

    Success did not mellow Mr. Vidal. In 1968, while covering the Democratic National Convention on television, he called William F. Buckley a “crypto-Nazi.” Buckley responded by calling Mr. Vidal a “queer,” and the two were in court for years. In a 1971 essay he compared Norman Mailer to Charles Manson, and a few months later Mailer head-butted him in the green room while the two were waiting to appear on the Dick Cavett show. They then took their quarrel on the air in a memorable exchange that ended with Mr. Cavett’s telling Mailer to take a piece of paper on the table in front of them and “fold it five ways and put it where the moon don’t shine.” In 1975 Mr. Vidal sued Truman Capote for libel after Capote wrote that Mr. Vidal had been thrown out of the Kennedy White House. Mr. Vidal won a grudging apology.

  12. BusSchDean says:

    If read more widely the informative albeit mis-titled “Out of Business” (Measuring the Decline of American Entrepreneurship) article would help improve the quality of discussion about the landscape of American businesses. Based on #s we are a country of small business — defined as less than 500 employees — but that does NOT represent the power base of business. Approximately .3% (yep, .3%; not, 3%) of all US firms generate 56% of US private payroll. THAT is the power base of business.

    We definitely need to encourage entrepreneurship but let’s be clear on it economic and social role. As a powerful engine of change (ala Steve Jobs) we need entrepreneurs, some of whom will grow large and successful companies. As the article shows, however, enterpreneurship is not our economic and social salvation. Of course thinking like entrepreneurs can help any business.

  13. swag says:

    More Vidal. My favorite of his books were his great memoir “Palimpsest”, “United States” (essays), and the novels “Kalki” and “Myra Breckenridge”.

    Here’s a favorite essay, “Monotheism and its Discontents”

    http://govt.eserver.org/monotheism.txt

    “The great unmentionable evil at
    the center of our culture is monotheism. From a barbaric Bronze
    Age text known as the Old Testament, three antihuman religions
    have evolved –Judaism, Christianity, Islam. Thes are sky-god
    religions. They are, literally, patriarchal –God is the
    omnipotent father– hence the loathing of women for 2,000 years
    in those countries afflicted by the sky-god and his earthly male
    delegates. The sky-god is a jealous god, of course. He requires
    total obedience from everyone on earth, as he is in place not for
    just one tribe but for all creation. Those who would reject him
    must be converted or killed for their own good. Ultimately,
    totalitarianism is the only sort of politics that can truly serve
    the sky-god’s purpose. Any movement of a liberal nature endangers
    his authority and that of his delegates on earth. One God, one
    King, one Pope, one master in the factory, one father-leader in
    the family home.”

  14. edroman says:

    Microsoft and Intel were added to the Dow in 1999 a year before Internet/Personal Computing bubble collapsed. If Apple is added, does anyone foresee a Social Media/Mobile-Cloud Computing/Other bubble collapsing?

  15. VennData says:

    Forbes college list is laughable.

    Weaton College of IL ( that they say is in Mass.) Is the 81st best college in America,? Notre Dame the 12th? Harvey Mudd???

    http://www.forbes.com/top-colleges/list/

    Who makes this stuff up, the guys that send out those large-fon emails that keeps snopes.com in business?

  16. July 27, 2012, 2:34 PM — Big news: Apple has just scooped up AuthenTec for nearly $360 million. Why is this important? Because AuthenTec makes fingerprint sensors for use in mobile devices. The implication of this purchase is that future versions of the iPhone and iPad may have a fingerprint reader embedded in them, and that could be a pretty big deal. As Apple goes, so goes the rest of the mobile universe.

    In other words, instead of entering an easily hackable or easily forgettable password to unlock your phone or tablet, you’d just stick your thumb on it. Or instead of entering a password on your bank’s Web site – hoping that it’s not really a phishing site in disguise – you’d use a thumbprint, which only the real bank would be able to verify.

    Have I mentioned how much passwords suck? I think I have. Biometrics are probably the best solution to avoiding passwords or their clumsy alternatives (like text authentication or RFID fobs), and so Apple’s acquisition of AuthenTec is pretty significant….
    http://www.itworld.com/it-managementstrategy/287632/apple-wants-your-fingerprints-file

  17. Jojo says:

    Americans Are Overtaxed’ and Other Federal Budget “Myths”
    By Aaron Task | Daily Ticker
    August 1, 2012

    You’re probably aware the U.S. government spends a lot of money and more than it brings in. But few Americans have a really good understanding of how the budget works, where the money comes from and where it goes.

    In Red Ink: Inside the High-Stakes Politics of the Federal Budget, Wall Street Journal economics editor David Wessel shines a light on the federal budget and seeks to clear up some of the “myths and unrealities,” including:

    Politicians Choose How the Money Is Spent: Over 60% of the federal budget — $3.6 trillion in fiscal 2011 — is on “autopilot,” Wessel notes, citing Social Security checks, Medicare, Medicaid, farm subsidies and veterans benefits that occur “without a vote of Congress.”

    All the Money Goes to Foreign Aid and Government Workers: Foreign aid is typically less than 2% of the budget — “it’s a pittance,” Wessel says, and firing all federal employees wouldn’t even cut the deficit in half.

    Uncle Sam Keeps Reaching in Our Pockets:

    http://finance.yahoo.com/blogs/daily-ticker/americans-overtaxed-other-federal-budget-myths-171349674.html?l=1

  18. formerlawyer says:

    @gordo365 Says:
    American Society of Civil Engineers gives the U.S. Electrical infrastructure a D+ rating (and I am aware thath they have an axe to grind)
    http://www.infrastructurereportcard.org/fact-sheet/energy

    NPR advocates a smrter grid/smarter consumption.
    http://www.npr.org/series/103281114/power-hungry-reinventing-the-u-s-electric-grid

    Business opportunity in the Transmission & Distribution industries ie. GE
    http://www.incontext.indiana.edu/2010/july-aug/article3.asp

    ASCE rates raill a C-
    http://www.infrastructurereportcard.org/fact-sheet/rail

    Council on Foreign Relations is more sanguine at least with freight rail although it notes that substanital additional investment will be required to adddress congestion.
    http://www.cfr.org/united-states/us-rail-infrastructure/p27585

    Congestion:
    http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congestion.htm

  19. Jojo says:

    @Mark

    Good luck to Apple if they try to use fingerprints as an authentication mechanism!
    https://www.google.com/search?as_qdr=all&num=20&q=fingerprint+hacking

  20. PeterR says:

    Now it’s the GD “Rogue Algorithms” to blame for erratic trading this morning.

    Lock them up and throw away the key.

    You can’t make this stuff up!

    http://www.nytimes.com/2012/08/02/business/unusual-volume-roils-early-trading-in-some-stocks.html?_r=1&hp

  21. willid3 says:

    another way banks have gamed foreclosure gate
    http://www.nakedcapitalism.com/2012/08/another-way-banks-abuse-homeowners-and-distort-markets-refusing-to-take-title-to-foreclosed-properties.html

    seems even when they foreclose, they just decide to not take possession.
    leaving a mess. and the original owners still on the hook

  22. Oral Hazard says:

    Two of my favorite Gore Vidal witticisms very applicable to our times:

    1) There is one political party in the United States with two branches

    2) There is no conspiracy among the elite. It’s just that they all think alike.

  23. VennData says:

    New Law in North Carolina Bans Latest Scientific Predictions of Sea-Level Rise

    http://m.yahoo.com/w/legobpengine/news/law-north-carolina-bans-latest-scientific-predictions-sea-165416121–abc-news-topstories.html?orig_host_hdr=news.yahoo.com&.intl=US&.lang=en-US

    By gosh the GOP is right, there is too much regulation.