My morning reads:

• On Wall Street, the Rising Cost of Faster Trades (NYT)
• Central Banks Have Conditioned Equity Investors (Alhambra Partners)
• Nouriel Roubini on Threats to the Global Economy (Businessweek)
• Drought puts federal crop insurance under scrutiny (Washington Post)
• Paul Ryan/Reagan Adviser Two-fer:
…..-David Stockman: Paul Ryan’s Fairy-Tale Budget Plan (NYT)
…..-Bruce Bartlett: Blaming Obama for George W. Bush’s Policies (Economix)
• Is That It for Financial Crisis Cases? (DealBook)
• Fracking Hazards Obscured In Failure To Disclose Wells (Bloomberg)
• WHY TEACH SPORT? (Stumbling And Mumbling)
• A Makeover Made in Google’s Image (WSJ)
• Facebook’s Drop Limits Goldman Sachs Gain As Lockup Ends (Bloomberg) vs this awful article: A Steep Climb Back for Facebook’s Stock (NYT)

What are you reading?

Temperatures rising

Source: Washington Post

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 Tuesday AM Reads”

  1. Hantra says:

    Hey Bruce Bartlett. . . No one FORCED Barack Obama to continue, and double down on the exact Bush policies people are complaining about. No one forced Obama to ignore the economy, and use the Bush autopilot, while shoving health care down our jobless throats. At some point, the guy’s going to have to get a little bit of the blame.

  2. spooz says:

    Any comment on Zerohedge’s suggestion that the seasonal adjustment in retail sales looks off? TD says that over the last decade routinely subtracted an average of $5.2 billion but this time added $1.9 billion.
    I hate seasonal adjustments because it leaves the question of manipulation based on tweaking models possible.

  3. spooz says:

    edit! garbled grammer, sorry.

  4. rickw says:

    What happens to the avg. temp when you take out those 7 outliers I see on the chart for the last 100 years? Does one really hot year in 16 on avg make this analysis proper? I understand that the outliers may be the point and I don’t deny that we can do better when it comes to pollution but the guy cheated on the hockey stick so why can’t we have have some better analysis.

    Barry’s is the only blog I read that called the financial crisis way ahead of everyone so call me a skeptic on most all analysis. Galbraith said it right “where you stand on a subject depends on where you sit” and for me, alot of academics just sit on their hands.

  5. willid3 says:

    hantra agreed with some reservations. seems that every new president ends up with the previous ones budget because of the budget cycle. usually only changed in mid stream for an emergency like war. and every turn over also has a lot of jobs that were appointed that become regular jobs, and a lot of the management and workers get ‘trained’ and hired to work a certain (over time) so they will go that way for at a couple of years into the new term (many studies show this to be the ). a lot of it might be the size (its not small). and then its was like taking the controls of an airplane that was in a crash would you make major changes? the terror of making a mistake can be fatal. but still there should have been some changes. but there wasn’t . he has been more of a conservative president, in spite of those conservatives who claims he is a socialist. which is more of a politics think that reality

  6. perra says:

    My morning read…As a European living in China, I have been surprised by the number of politicians and commentators in the US wants their country to “be more like China”. To me, this is a very scary thought, even if they are just referring to economic or industrial policy.

    Anybody who thinks differently should read this article (from a Chinese business publication) about Chinese government attempts to save one of China’s largest photovoltaic product manufacturers, LDK Solar.

  7. DeDude says:

    So Ryan sponsored a bill to force the Fed to abandon the part of its mandate that protects regular folks and limits their exploitation by the 1%’ers (unemployment), but he wanted them to retain the part of the mandate that protect the wealth of the rich (inflation). Perhaps not surprising for a person who’s monetary policy comes directly out of the pages of a fiction novel (Atlas Shrugged). What is surprising is that this is a person who goes as a conservative “policy wonk”. If the bar for being a GOP policy wonk is this low, then we are in deep dodo.

  8. spooz says:

    The Washington Post leaves out some information on the crop insurance issue. First, the ethanol mandate has encouraged corn monoculture which results in erosion of topsoil and buildup of pathogens and pests in the soil. Big Ag addresses the latter with genetically modified seeds that, unfortunately, are allowing for the development of superweeds and immunity in pests. The answer to superweeds from Big Ag is to add more dangerous herbicides to the cocktail, one that is a toxic component of Agent Orange. These chemicals impact water quality through runoff.

    Then there is the bogus ethanol mandate, again a boon to Big Ag, that is more expensive on an energy content basis than the gasoline with which it is blended. Corn is a thirsty crop and the search for yield include adding irrigation has resulted in more draining of the Ogallala aquifer. Another drain on the aquifer is the ethanol plants, with each gallon of ethanol requiring up to four gallons of water to produce.

    The insurance subsidy is crony capitalism and should be limited to small farms that need it to survive. Big Ag doesn’t need subsidies. They show no interest in sustainable farming and shouldn’t be propped up.

  9. EAR says:

    Hey Hantra,

    I hear Romney, the GOP and the baggers blame Obama for everything everyday.

    I recall a standoff he had with the GOP in December 2010 where he wanted to end tax cuts for the wealthy and the newly emboldened right said extend them for everyone or end them and UIB for everyone.

    But I’m sure you don’t recall it that way just as you don’t interpret McConnell’s decree to make Obama a one termer by any means necessary as the driver of GOP strategy or recall the actual point of the Bartlett article you JUST read.

    Romney is depending on such recollection and interepretation.

  10. JimRino says:

    - If you have 7 outlier’s, then they’re not outliers.
    - Nuclear requires water to cool it’s reactors, already in Texas they’ve had to shut down nuclear on their hottest days, as the water is too hot to cool the reactor! Texas is leading in wind installations.
    - Fracking requires 2-10 million gallons of water per drill site, this is water that’s turned into waste water and needs to be “treated”, either legally or illegally dumped into streams, polluting with methane, mercury and uranium. But, PA and other states going into drought don’t have the water available to Frack!
    - Fracking sites are seeing Rapid Dropoff in their wells, up to 40% in the first year.
    - Fracking sites are using higher pressure, meaning earthquakes and more pollution rising back up into the freshwater aquifer.
    - Libertarians take note. Private Property Rights being STOLEN by the Fracking industry and the Puppet Republican governors and legislatures they put into place.

    Water is the New Gold.
    Fracking is for Fools.

  11. [...] If all Republicans were like Bartlett and Stockman, I’d have to reconsider which party to vote for. While I disagree heartily with them on many things, they have been honorable in accepting blame for bad policies. Via Ritholtz, [...]

  12. formerlawyer says:

    Michale Grunwald’s new book looks at President Obama’s American Recovery and Reinvestment Act and likes it.

  13. Jojo says:

    Google: Central Banks’ New Economic Indicator
    By Aki Ito and Alisa Odenheimer on August 09, 2012

    Margo Sugarman spent months last year searching on Google (GOOG) for double ovens, low-noise mixers, and other appliances to complete her dream kitchen. Not only did those queries guide the Tel Mond (Israel) resident to the best deals for her 70,000 shekel ($17,680) renovation, they also helped the Bank of Israel, which looks to searches such as Sugarman’s to assess the state of the nation’s $243 billion economy.

    Israel’s central bank is at the forefront of the hunt for new economic indicators. It analyzes keyword counts on Google for everything from aerobics classes to refrigerators to gauge consumer demand before releasing government statistics. The bank is not alone. The Federal Reserve and the central banks of Britain, Italy, Spain, Turkey, and Chile have followed Israel’s lead with their own studies to see if search volumes on Google correlate with broader economic trends.

    The bottom line: Google data available one to three days after searches may be an improvement on central bank data gathered weeks before.

  14. Jojo says:

    USA not alone with retirement problems. I did not know that China had a national pension system and that woman could retire at age 50 and men at age 60. That’s far better than the USA!
    China’s Brewing Pension Crisis
    By Dexter Roberts on August 09, 2012

    Sixty-nine-year-old Li Qingyuan has it pretty good. He and his wife live in a cozy apartment in Beijing. Since he retired in 2003 from a state-owned textile machinery factory, his pension has grown by about 10 percent a year, well above inflation. His monthly 2,800 yuan ($440) check is more than enough to get by. With the extra cash, he buys high-end cameras and lenses. “Our life is not bad at all after retirement. I am very satisfied,” he says.

    Despite happy retirees like Li–and partly because of them–China’s pension program is becoming unsustainable. According to a recent report by economists at Deutsche Bank (DB) and the Bank of China, the projected shortfall for future pension payments will reach 18.3 trillion yuan by next year. People older than 60 already make up 13 percent of China’s population, and by 2050, the World Bank estimates that they will account for 34 percent. “They are trying to expand coverage rapidly at the same time they are aging rapidly,” says Philip O’Keefe, Human Development sector coordinator at the World Bank in Beijing.

    The bottom line: China’s pension system faces a projected shortfall of $2.9 trillion, calling the government’s credibility into question.

  15. socaljoe says:

    Temperatures Rising…

    A few more decades of this trend and we may be able to cultivate parts of Greenland… as the Vikings did during the medieval warm period 1000 years ago.

  16. Joe Friday says:

    David Stockman: Paul Ryan’s Fairy-Tale Budget Plan

    And he knows one when he sees one.

  17. Joe Friday says:


    Hey Bruce Bartlett. . . No one FORCED Barack Obama to continue, and double down on the exact Bush policies people are complaining about.

    You mean OTHER than the Senate Republican filibusters ?

    In the confrontation EAR mentioned, the Congressional Republicans were willing to let the federal government enter default to protect those precious tax cuts for the wealthy, and those weenies at Standard & Poor’s even ended up downgrading the debt anyway (don’t they look stupid).

  18. Brent_in_Aurora says:

    Do not forget the first two years of the Obama administration when he had overwhelming majorities in both houses of Congress. Why did Obama lose those overwhelming majorities?

  19. thomas hudson says:

    Erskine Bowles, Clinton White House chief of staff and co-chair of Obama’s National Commission on Fiscal Responsibility and Reform, commenting on Ryan’s budget proposals:

    “Have any of you all met Paul Ryan? We should get him to come to the university. I’m telling you, this guy is amazing. I always thought I was okay with arithmetic, this guy can run circles around me. He is honest, he is straightforward, he is sincere. And the budget he came forward with is just like Paul Ryan. It is a sensible, straightforward, honest, serious budget and it cut the budget deficit just like we did by four trillion dollars… The president came out with his own plan. And the president, as you remember, came out with a budget. And I don’t think anybody took that budget very seriously. The Senate voted against it 97 to nothing. He therefore, after a lot of pressure from folks like me, he came out with a new budget framework. And in that budget framework, he cuts the budget by four trillion dollars over twelve years. And, to be candid, this four trillion dollars cut was very heavily back-end loaded. So, that if you looked at it on a ten-year basis and compared apples to apples, it really was about a two and a half trillion dollar cut.”

  20. JerseyCynic says:

    Our neighbors to the north really do understand US….

    best cartoon ever

  21. whskyjack says:


    If the Republican party wasn’t full of crazy racist, Obama would be Republican? How many Republicans believe Obama is a muslim even as they denounce Obama for attending a church where the minister is racist. Want me to go on?