My morning reads:

• Wall Street Pros Tell Us The #1 Thing That Could Wreck This Rally (Business Insider)
• The Truth About Taxes: Just About Everyone Pays Them (Hamilton Project)
see also Some Big Corporations Don’t Pay Taxes, Either (Economix)
• Low-Water Mark (Hussman Funds)
• Draghi Euro Humbles Thought Leaders Seeing End of Union (Bloomberg) see also Helicopter Ben to QE3 Rescue (Investing Caffeine)
• Apple Reaches $700 as IPhone 5 Shatters Sales Record (Bloomberg)
• Paring 401(k) Expenses (NYT)
• The Romney Video is the latest unforced error from a bumbling campaign; the response has been swift and brutal:
…..-Thurston Howell Romney (NYT)
…..-Romney Stands by Government-Dependent ‘Victims’ Remark (Bloomberg)
…..-Devastating (Talking Points Memo)
…..-Today, Mitt Romney Lost the Election (Bloomberg)

• Warp Drive May Be More Feasible Than Thought, Scientists Say (Yahoo News)
• 10 awesome things you didn’t know about ‘Married… With Children’ (Death And Taxes)
• David Byrne on How Music and Creativity Work (Brain Pickings)

What are you reading?


Payout Appreciation

Source: NYT

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.

29 Responses to “10 Tuesday AM Reads”

  1. TLH says:

    As dumb as Romney seems, is Obama any smarter? Will either get America out of this malaise? Bernanke says the economy is in the pits. The stock market says the economy is at a four year high. Who wins? Will the exit be big enough for the bond market? stock market? Both are at highs.

  2. Oral Hazard says:

    Barry, I’ve been reading your blog almost daily for four years now.

    I’m sure I’m not alone in wanting to read a summary of how your personal views on finance, investing and Wall St. generally have evolved during this time.

    Is anything like that in the offing?

  3. NoKidding says:

    “• Wall Street Pros Tell Us The #1 Thing That Could Wreck This Rally (Business Insider)
    • The Truth ”


  4. wannabe says:

    No amount of press spin or focus in inanities can hide the fact that Obama’s foreign policy is an utter failure, based on a dangerous combination of delusional hubris and naivete.

    He actually believed his own BS, that “the day I’m inaugurated … the whole world looks at America differently”

    That “smart power”, they’ve been crowing about has directly resulted in the first US ambassador KIA since Carter’s adminstration. Very fitting, somehow.


    BR: As someone who travels overseas regularly, there is a very noticeable difference between how Americans are treated during Bush administration and post W.

  5. Moss says:

    Hopefully the disaster that is the Romney campaign will lead the GOP to reconstitute themselves into a viable alternative. Then again they will probably say they did not have a real conservative as a candidate and drift even more to the right, making it impossible for them to ever field a person to sway all those ‘takers’.

  6. DeDude says:

    Romney is hitting very hard on grandma for being dependent on her social security and Medicare for food and health care. Who does she think she is, to consider herself entitled to all these free-bees from the government. It’s about time we cut her lose so that people like Romney can have their taxes lowered from 14% to 2%.

    Who the heck is running this guys campaign – a democrat ?

  7. James Cameron says:

    > As dumb as Romney seems, is Obama any smarter?

    Oh, come. Romney is running a far more successful campaign against himself than he is against Obama. He’s a weak candidate whose greatest political accomplishment over the last year has been to dispatch Herbert Cain, Newt Gingrich, Michele Bachmann and Rick Perry.

    It’s been and still is a circus act.

  8. kek says:

    I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” Thomas Jefferson

  9. DSS10 says:

    I’d like it if some one could assess in both a gross dollar basis and percentage of income basis the amount of government transfers people receive across income groups. I’d be willing to wager those with an income in excess of 200K get more benefits be it through the bush tax cuts, mortgage interest deductions and the reduced rate of taxation for interest income and capital gains than the minimum wage worker who works 45 hours a week and still qualifies for food stamps. Compound this with the “business friendly” policies suppressing the minimum wage and other business friendly labor laws which subsidize the returns on business’s investments I think you would find out that the true federal teat sucklers are those who are most vocal about some one else getting the benefits that they enjoy.

  10. Chad says:

    I really hope the warp drive is possible and we get to another solar system some time in the next 40-50 years before I die.

  11. Molesworth says:

    Interesting idea. Sounds like a job for Invictus.

  12. James Cameron says:

    > I’d be willing to wager those with an income in excess of 200K get more benefits be it through the bush tax cuts, mortgage interest deductions and the reduced rate of taxation for interest income and capital gains than the minimum wage worker who works 45 hours a week

    And let’s not forget the employer share of the premium for health care plans, a benefit often worth in excess of 10K in many plans, but that is not taxed. This is one of those tax perks like those related to your home and retirement that are not generally available to income groups in the lower quintiles. The tax not paid on this particular perk is a loss of many thousands of dollars to the US Treasury, depending on your income, an amount which far exceeds any deductions or credits available to groups in the first two quintiles.

    For what it’s worth, for 2011 the upper income limit for these two quintiles was $38,520 and $20,262, respectively. The associated mean incomes were $29,204 and $11,239. That first quintile is nearly half of the households Romney referred to (households, not population as Romney incorrectly claimed). The second quintile almost certainly accounts for the great majority of what remains.

    Each of these groups, which consist of a little more than 24 million households, could contribute $500 more a year in taxes – a large sum for these households – and the US Treasury would receive just $24 billion more a year in revenue. Peanuts.

  13. A says:

    Romney picked the wrong running mate.

    He and Joe Biden would make the perfect team: they simply open their mouths, and votes are lost.

  14. DrungoHazewood says:

    While you guys endlessly argue about the different ways these clowns are going to destroy the country here’s something

    Dear old dad (SDSM&T ’50), if he were still living, would bolt up out of his wheelchair and do a superior dance. Probably add a leg flourish and a coupla boyahs.

  15. rct01 says:

    I actually 100%, totally agree with what Romney said on the video, it’s just not “politically correct”. A lot of the people that will vote for Obama pay no income taxes and think they are entitled to more and more Gov handouts. He spoke the truth. Unfortunately Americans can’t handle the truth well.


    BR: except for the you know, major factual inaccuracies, statistical errors and generally being misleading. Other than that, it was spot on.

  16. PeterR says:

    Chicago Fed laments HAL out of control:

    Hey, Barry here is a new word for you:

    HALgorithms !!!

  17. PeterR says:

    Listen to the big Mittstake on Robert Reich’s site. In particular listen to Mitt’s tone of voice and “attitude.”


    “But the the most important revelation here isn’t Romney’s witting distortions. It’s his indignant condemnation of almost half the American electorate. A president is supposed to represent all of America, not just the 51 percent who elect him, and have a modicum of sympathy for the less fortunate among us.”

  18. willid3 says:

    states where the highest number of no income tax liability

    oddly enough it is mostly southern states. also red states

  19. Moss says:

    Warren Buffett, in a recent interview with CNBC, offers one of the best
    quotes about the debt ceiling:

    “I could end the deficit in 5 minutes,” he told CNBC. “You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.

    The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified! Why? Simple! The people demanded it. That was in 1971 – before computers, e-mail,
    cell phones, etc.

    Of the 27 amendments to the Constitution, seven (7) took one (1) year or less to become the law of the land – all because of public pressure.

    Congressional Reform Act of 2012
    1. No Tenure / No Pension.
    A Congressman/woman collects a salary while in office and receives no pay when they’re out of office.

    2. Congress (past, present & future) participates in Social Security.
    All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.

    3. Congress can purchase their own retirement plan, just as all Americans do.

    4. Congress will no longer vote themselves a pay raise.
    Congressional pay will rise by the lower of CPI or 3%.

    5. Congress loses their current health care system and participates in the same health care system as the American people.

    6. Congress must equally abide by all laws they impose on the American people.

    7. All contracts with past and present Congressmen/women are void effective 12/1/12. The American people did not make this contract with Congressmen/women.

    Congress made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.


  20. DeDude says:


    The less attractive you make a job the less able you are to attract competent applicants. Do you really think that the current congress is way to competent and that we can dial it down a few notches?

    But I guess we could just stop paying them anything and let the corporations they serve pay them both while in office as well as after they leave office.

  21. thomas hudson says:

    how the taliban took out six of our harriers and two marines:

    Last Friday, a few hours after sunset, the Taliban struck at about 10PM. They killed two US Marines, one of them a commanding officer, and they wiped out roughly 8 percent of our Harrier jet force. Harriers are no longer manufactured, so these aircraft cannot be replaced. Scratch one squadron, and now the military must reallocate aircraft to cover the deficit.

    The enemy fooled all of our high-tech gadgetry with training, observation, intelligence, terrain, planning, rehearsal, and audacity, using basic military tactics that were perfected long before anyone reading this was born. Persistence and luck was also a key factor: the Taliban have attempted similar attacks at different bases in the past with poor results. The Taliban only have to be lucky once. We have to be lucky all of the time.

  22. thomas hudson says:

    moss: my mom sends me a lot of stuff like this, and i have to always gently remind her to check with snopes before sending this stuff:

    although i don’t necessarily disagree with much of the content, a few points are demonstrably false.

    for example, unless your congressman was elected before 1986, he or she pays into Social Security just like everybody else. their pension in no different than any other federal employee (FERS).

  23. wannabe says:

    BR: As someone who travels overseas regularly, there is a very noticeable difference between how Americans are treated during Bush administration and post W.


    This response is beneath this blog, a combination of two logical fallacies, self-selection and confirmation bias.

    Anecdote is not evidence. “As someone who travels overseas regularly” = argument from authority. The people you talk to are self-selected and how they treat you matches your expectation.

    As meaningless as it is, I also doubt you’re spending a significant amount of that time in the muslim world.

    Since this place is all about the data, here’s some data:

    “%Favorable to the US” slips below those of the Bush era in the Muslim world.


    BR: On very rare occasions, there are things you dont need data for. I guess I am wrong, W was beloved around the globe.

  24. wannabe says:

    That’s an amusing quip but counts as little more than a dodge to avoid conceding my point. We’ve become LESS popular in the muslim world after 3.5 years of Obama’s stewardship despite his delusional ego-maniac’s claim that the world would look at us differently the day he was inaugurated.

    That is simply an epic fail even without the dead ambassador.