My morning reads:

Transcript: A Conversation with Ray Dalio (Council On Foreign Relations)
• Chicago Fed laments ‘out-of-control’ algorithms (Market Watch) see also For Superfast Stock Traders, a Way to Jump Ahead in Line (WSJ)
Today’s WTF article: A Rare Look at Why The Government Won’t Fight Wall Street (Rolling Stone)
• The Dangers of a China-Japan Trade War (The Diplomat)
• Will Dow’s gyrations determine race for White House? (USA Today) see also Who’s better for stocks: Obama or Romney? (Fortune)
• Miners Exploring the Web (WSJ)
• Best of Breed Investment Advisors (Barron’s)
• Deposit Flight From Europe Banks Eroding Common Currency (Bloomberg) see also Missed Chances Stoke Skepticism Over EU’s Crisis Fight (Bloomberg)
• A One-Stop-Shop for Innovators (US Department Of The Treasury)
• ‘Red State Socialism’ graphic says GOP-leaning states get lion’s share of federal dollars (Politi Fact) see also Number of the Week: Top 20% of Earners Take Home 51% of All Income (WSJ)

What are you reading?


Slumping trade growth – and more oil Jedi mind tricks?


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. dead hobo says:

    BR postulated:

    Slumping trade growth – and more oil Jedi mind tricks?

    Regarding oil, I am thinking optimistically and am going to assume the idiots with hot money have finally learned that high oil prices choke the recovery and are unsustainable. Buying oil with the expectation of making 10% or 20% regular ‘interest’ is the king of all sucker bets. If I am correct, equities and, hopefully, real actual investment that is job producing, will get the former oil money.

  2. AHodge says:

    linked in is getting truly scary on privacy-worse than F book if thats possible
    asked do i know XXXXXXXXXX
    i only know this guy XX by his first name
    he is a devout republican and doing media
    i always bust his ass for being so creepy and low he just laughs
    now i know his whole name and he runs an R PAC
    the only connection linked in could have-no emails notheing written didnt eave know his last name myself
    is we live in the same building–man does this suck.

    if you want to sign for premium linked in
    then you canbrowse everybody on it not just riends you have authorized

  3. DSS10 says:

    “Oil- that’s not the speculative physical commodity you are looking for….Move along.”

  4. coachin2au says:

    The now ubiquitous “smiley” turns 30 today…


  5. Molesworth says:
    DeLong deconstructs the Romney tape and concludes:

    As Mark Schmitt writes, Arthur Brooks and Nicholas Eberstadt of the AEI paint a fake picture in which:

    receipt of benefits makes people “dependents,” that people are becoming “chiselers,” choosing to maximize benefits, that the expansion of entitlements was a political effort by the left that slowly overcame “resistance” from real Americans…

    while in fact:

    people who receive benefits are no more or less “dependent” than corporations that get tax breaks or legal protections, that the expanding costs of major entitlements are about rising health care costs and, to a lesser extent, the demographics of an aging nation rather than more people becoming “takers,” and that the expansion of some benefits to the lower rungs of the middle class was a bipartisan project in which conservatives should take pride…

    We are, overwhelmingly, both contributors to and drawers on the national treasure–that is what it is to be a citizen.

    There should have been people to deprogram Mitt Romney when he began to fall victim to this AEI cult. Wall Street Journal editorialists should have warned him not to confuse the “prolefeed” they distribute with the way the world actually works. Economic advisors like Eddie Lazear ought to have straightened him out about the state of the labor market, while Harvey Rosen and Greg Mankiw ought to have convinced him that you would not expect Social Security recipients to pay income taxes. Somebody should have told Mitt Romney that roughly half of those who are currently paying no income taxes will vote for him in November.

    Does Romney spend so little time talking to real policy advisors that these issues never came up?

    Does Romney suffer from CEO disease to such an extent that pointing out that he believes something that is not true is such a career-limiting view that nobody dares do it?

  6. willid3 says:

    possible future energy in sight?

    or at least a lot closer than ever before

  7. Bob A says:

    GARY SHILLING: Here’s Why There’s No Housing Recovery And Prices Will Collapse Another 20%

  8. formerlawyer says:

    “I think that Ben Bernanke’s QE3 is such a game changer, that we have to throw all existing strategies into the trash and start all over again from scratch. …”

  9. patfla says:

    Zerohedge has pieces like this

    at least once a day which provide good information on day-to-day issues in market structure/technicals.

  10. willid3 says:

    maybe Mitt just doesn’t get how the poor live. after all they have to make choices he doesn’t have to make, like whether to buy a little more food or not. thats not an issue for him. but then he does have to make choices they dont have to make either. like whether to add an elevator. or to add a new car to his fleet.

  11. willid3 says:

    IRS not enforcing laws? seems that there are tax problems that the IRS doesn’t care to hear about (that see no eveil speak no evil thing). but if you or I do any thing even mildly wrong , they will come after us. but not wall street and the banksters

  12. AHodge says:

    re romney imploding his campaignhead stuart XXX
    appears to be a flake adventure vcationer/ travel writer and media attack ad honcho till elevated by Mitt
    looks like an insane megalomanic blowhard mississippi version
    quote from his book The Big Enchilada on his Bush 2 campaign role
    designing TV spots was to make the Gore campaign “squeal like Ned Beatty in Deliverance”;
    he is apparently pissing off donors staffers congress….
    nice management job Mr MBA CEO president

    this guy is dumber than George W Bush and attracts the same crowd.

  13. dougc says:

    Interesting segment on NPR about a study on the effectiveness of bonuses on teachers performance, using 150 math teachers. No difference between the groups where the teachers were promised a bonus for increased test scores and the control group. Significant improvement in the group where the teachers were given the bonus at the start but were told that it would be taken back if no improvement.

  14. ancientone says:

    Barry, Why would you label Rolling Stone’s article about the government and Wall Street as WTF? Were you unaware of the corruption in our government? Unfortunately, none of this is a surprise.

  15. AHodge says:

    late in commenting on dalio
    this should be required remedial cyle financial economics 101 for all the fed system staff
    starting with chairman
    QUOTE RAY DALIO So the issue of a deleveraging — there’s a bubble, and you know a bubble when you see a bubble. OK, how do you define a bubble? So maybe I should explain a little bit, what I think of –
    MODERATOR: I love it.
    (read it)
    RAY…….So what we have is a credit cycle. If there’s not much debt, if you don’t have much debt, then you have the ability to borrow money. Let’s say you earn a hundred thousand dollars a year and you don’t have any debt. You can then borrow 10,000 dollars a year. You therefore can spend $110,000. Your spending of $110,000 is somebody else’s income of $110,000….. and the cycle becomes self-reinforcing. Through that cycle, debt rises faster than income. Debt rises faster than income. Debt can’t rise faster than income forever. So as debt rises faster than income, you have a debt cycle.
    (hits peak and why—read it)
    So then you go through a deleveraging. Now, a deleveraging — deleveraging means that you can’t raise debt relative to income anymore. When you can’t raise debt relative to income anymore, the cycle begins to reverse? Three parts to deleveraging
    1 austerity
    2..debt restructurings.
    three types ofrestructuring
    A write down the debt. (But) a big negative wealth effect to that can’t borrow money—(collateral lost)
    B lengthen the payments
    C forcibly lower the interest rate.
    3 Print money
    The debt writedowns and the austerity are deflationary. The printing of money is inflationary. If you can get the balance right of those things, then you have what I call a beautiful deleveraging, a deleveraging — (laughter) –UNQUOTE

    the mans a genius unparalleled he is as smart a soros and more articulate
    i cant get his stuff see a lttle through friend
    before he is done he may make more moneythan soros-he has a good run left]
    needless to say those in charge have massively demonstrated they no knothing about restructurings and lost what collective wisdom was around in government in the 1980s
    im not fit to shine rays boots
    but maybe we both know how to protect ourselve and prosper?

  16. AHodge says:

    needess to say bailouts are the opposite of deleveraging
    except personally for the bailed
    (corporations being people and all)

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