My afternoon train reading:

• Plunge in Goods Orders May Restrain U.S. Expansion (Bloomberg)
• Are financial advisers worth their fee? (Market Watch)
• Credit Swaps – A Travesty of a Mockery of a Sham (CFO)
WTF? Fidelity’s stock funds eclipsed by bond and money market assets (Reuters)
• The “dividend tax” cliff approaches: Implications for stocks (Musings on Markets)
• Cellphones Are Eating the Family Budget (WSJ)
• Why Twitter Is Already Bigger Than Facebook (Forbes)
• Apple-Google Maps Talks Crashed Over Voice-Guided Directions (All Things D) see all Apple had over a year left on Google Maps contract, Google scrambling to build iOS app (The Verge)
• How the brain filters bad news (Guardian)
Hilarity ensues:  My Name is Joe Biden and I’ll Be Your Server (New Yorker)

What are you reading?


Nearly 400,000 More Jobs Added Than First Thought

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.

19 Responses to “10 Thursday PM Reads”

  1. denim says:

    I’m reading:

    “… Bloomberg quoted Shawn Henry, former executive assistant director of the FBI in charge of the agency’s cyber division, who said that typical cybersecurity headlines about data breaches scarcely hint at the scope of the group’s activities:

    What the general public hears about — stolen credit card numbers, somebody hacked LinkedIn (LNKD) — that’s the tip of the iceberg, the unclassified stuff. … I’ve been circling the iceberg in a submarine. This is the biggest vacuuming up of U.S. proprietary data that we’ve ever seen. It’s a machine.

    Evidence indicates that at least 20 organizations have been harvested for data, many of whose secrets could give China a leg up on its path to becoming the world’s largest economy. ”

    “… This is the biggest vacuuming up of U.S. proprietary data that we’ve ever seen. It’s a machine.”

  2. James Cameron says:

    > Nearly 400,000 More Jobs Added Than First Thought

    No point letting a good number go to waste. If you allow a president 6 months to get programs in place – not overly generous and far more reasonable than starting in January – the current would have created nearly 3.2 million jobs beginning in July 2009 with this preliminary revision factored in. The previous would have lost over 1.5 million jobs using the same approach.

  3. Futuredome says:

    Damn, Asia is really having capital flight right now. What it does to the global economy, remains to be seen. To me, Asia, not central banks, is where alot of where the “cheap money” has come from. I think central banks have used the “inflation” from Asia to make inflation look better here than it really is so they could do little as possible(including QE3 which is a drop in the bucket for the first year). If Asia has started disinflation as it looks now, this will expose it.

    With the lag, Q1 2013 could be quite interesting in places like Australia, Canada and the Woton countries coupled with Obama’s gutting of the military spending and raising taxes on the middle class. Maybe he will have a new investment program to replace the lost DoD spending.

  4. willid3 says:

    guess that we are just strange. we still have just plain old phones. and they are 3 years old now. dont see why we need to spend so much on phones

  5. Futuredome says:

    Cause it is hip dude. My phone is 3 years old as well. Trendy hipsters love the new gadgets man!!!!

  6. MorticiaA says:

    RE dividend tax cliff: Does tax law REALLY drive investor buy / sell decisions? I tend to think not, especially in this low yield environment where there’s nowhere else to go for income (for income investors).

    And do institutional money managers really sell off at the end of this year in anticipation of higher cap gains taxes? Again, I just don’t see that happening.

    I’d be interested in the comments of other TBP readers.

  7. M says:

    Geithner on MMF reforms:

    Option one would entail floating the net asset values (NAVs) of MMFs by removing the special exemption that allows them to utilize amortized-cost accounting and rounding to maintain stable NAVs. Instead, MMFs would be required to use mark-to-market valuation to set share prices, like other mutual funds. This would allow the value of investors’ shares to track more closely the values of the underlying instruments held by MMFs and eliminate the significance of share price variation in the future.

    Option two would require MMFs to hold a capital buffer of adequate size (likely less than 1 percent) to absorb fluctuations in the value of their holdings that are currently addressed by rounding of the NAV. The buffer could be coupled with a “minimum balance at risk” requirement, whereby each shareholder would have a minimum account balance of at least 3 percent of that shareholder’s maximum balance over the previous 30 days. Redemptions of the minimum balance would be delayed for 30 days, and amounts held back would be the first to absorb any losses by the fund in excess of its capital buffer. This would complement the capital buffer by adding loss-absorption capacity and directly counteract the first-mover advantage that exacerbates the current structure’s vulnerability to runs.

    Option three would entail imposing capital and enhanced liquidity standards, potentially coupled with liquidity fees or temporary “gates” on redemptions that may be imposed as an alternative to a minimum balance at risk requirement.

  8. DiggidyDan says:

    On the smartphone front, I have a grandfathered unlimited data plan with Verizon at $75 bucks a month (including taxes, fees, etc.) The recent FCC ruling made it certain that Verizon cannot charge for wifi tethering because of their spectrum for the 4G space. I cancelled my cable modem internet connection and don’t have a house phone, and now use a 3rd party app to send a wireless connection to my computer/laptop. It is less reliable than my wired connection before, but it works for my needs. Now I have all my phone/cell/internet through my single device and a bill for about half of what it used to cost me. I haven’t had cable in 10 years either–have an old school antennae that gets me HD broadcast. . . don’t miss much but sports and comedy and the premium channels that I would have paid extra for anyway, so redbox and Blu Ray box sets take care of that. I am late to the party on the latest shows, but I don’t give a crap for $100 bucks a month. . . Yeah, I guess I’m cheap, but I was poor at times growing up and my parents always taught me to ask before I buy something “Do I really need this” and to avoid credit for unnecessary or depreciating purchases and to avoid recurring variable costs/subscriptions in order to not live like a slave. You’d be surprised what you don’t miss and can get by on when you do that! You see so many people who act “Rich” spending on crap, who pulled equity out of their houses to buy stuff they didn’t need and were levered up to the hilt, pretty much with no wiggle room if paycuts or emergencies or layoffs happened. Don’t be that slave!

    Now if I just hadn’t bought that house because I needed a place to live. . .

  9. JerryC says:

    So why can’t the MMFs break the buck. What if I got $0.99 back instead? Why do they have to be risk free in the ponzi world?

  10. nofoulsontheplayground says:

    Doug Short, (courtesy of Mish).

    Real, Per Capita Core Durable Goods Orders with 3-Month Moving Average:

    This chart supports the theory of peak boomer spending being hit around the year 2000. Also, note the current bear flag on the larger chart out of the 2009 lows.

  11. farmera1 says:

    Murdoch abandoning Romney. Can’t be. Things must be really bad.

  12. Expat says:

    I had a Nokia 8810 for at least six years (it was HOT when it came out and the company paid for it). I would get teased endlessly by other traders with their Blackberries and iPhones. I now have a Samsung Wave (two years old) cuz it was free with the line. As long as it keeps working, I’ll keep using it.

    Friends with little money have the latest iphones, giant tablet phones, or iPads with full-on subscriptions. They then moan about the cost of food or high price of school supplies.

    What do people do with these things all day? Even when I was trading, I didn’t need 24 hour internet…in fact, I did not want it. So what does a bus driver or accountant do with this stuff? Write pointless comments on Facebook (“I’m at work…having coffee. Mmm.”) or play Angry Birds while waiting for a latte (instead of chatting with someone).

    It’s amazing how easy we are to con. It used to be “Find a need and fill it”. Now it seems that Apple has created a new need and is filling it: that need is “You need an iPhone.”

  13. VennData says:

    Nearly 400,000 More Jobs Added Than First Thought
    Are they saying that these PhDs in statistics know more than right-wing blow hards who mock the jobs numbers? The “Birth Death model? And anything Ron Paul decides is politically advantageius for him to stutter on about?
    You go on and listen to those journalists on the right who don’t know a thing about statistics… go see then foryour medical check up, and have them tune up your car too…. you right-wing morons.

  14. VennData says:

    If Aswath Damodardan is right, then Apple should have dropped when they declared a dividend and bonds should not have gone up since he feels that stocks haven,t reflected the end of the ‘temporary tax cuts.
    but nobody knows the counterfactual. His algebra only works at the margin and as he admits grudgingly, not for pensions, endowments and 401k investors. Who’s to say the odds of sequestration and the end of the ‘temporary’ tax cuts (finally) are not properly priced into the market?
    What about the Paul McCartney rule? When they raised taxes in the UK, Paul McCartney said he would have to work harder to get the same income. Why won’t people re-allocate more money to stocks to get their Investment Policy Statement determined growth on ever-increasing dividend income. …Oh, you don’t have an Investment Policy Statement?