My train back home reads:

• End to ‘alpha’ spells trouble for fund managers (
•  This economy could be as good as it gets (Reuters)
• The not-so-secret iPhone 5: What to expect from Apple’s event (Gigaom)
• One for the China bull(s) (FT Alphaville)
• Time for Congress to Wean U.S. Banks From an Outdated Crisis Backstop (WSJ) see also Triaxx’s spoiler play in ResCap MBS deal (Reuters)
• Good for business? Why corporate lawyers give bad marks to Chicago, L.A (Yahoo Finance)
• Fiscal cliff. Market crash. Depression: A way out (Market Watch) see also Fight the Good Fight Against Fees, Tax Inefficiency (Turnkey Analyst)
Fun with Cognitive Dissonance: Record Partisan Gap in Views of Economic News (Pew Research)
I cant drive 85: Texas Reclaims Title of Fastest in USA (NYT)
• The New New Girl: Mindy Kaling Promotes Herself Out of The Office and Into The Mindy Project (Vulture)

What are you reading?


Many New Jobs Created in Low-Wage Industries

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.

11 Responses to “10 Tuesday PM Reads”

  1. thomas hudson says:

    50th anniversary of dylan’s first release this year. in honor of that he has offered up his newest today, his 35th studio release.

    long live bob.

  2. James Cameron says:

    > Fiscal cliff. Market crash. Depression: A way out

    I’d be curious to know what Paul Farrell does to relax.

  3. The Retired CNBC Sucks says:

    I am reading “Transforming China – Illuminating the Path to Profitability”, published by the Goldman Sachs China clean energy research team and just received in my inbox.

    Talk about the unholy trinity of America’s enemies: Goldman Sachs, China, and clean energy!

  4. willid3 says:

    about that 85 MPH toll road

    also seems like the state made the choice based on the cash they were paid doesn’t it?

  5. iamtheonepercent says:

    Liked the “end of alpha” link.

    During the boom years, it was easy to create the illusion of performance, given that most funds created their own metrics and comparators. For example, one of the most basic ways to look good was to have multiple performance metrics in your marketing literature. You might track a simple benchmark index differential, a beta-adjusted regression return, or a sharpe ratio comparator group.

    The simple thing to do was each year highlight the metric that made you look good in your letter to shareholders!

    Harder to do in a 2-3% treasury environment. At those levels, people start asking pesky questions about absolute return, not some make-believe relative return, especially if you’re collecting 100-150 bps for fees.

    Recently had an interview for a “risk management” job at a large shop. They were primarily interested in my ability to look at the returns with multiple models. They were not interested at all in my experience at integrating control frameworks for market risk, credit risk, and liquidity management. I wasn’t surprised that I didn’t get beyond the first meeting.

  6. SecondLook says:

    Re: a third of Americans now say they are in the lower classes.

    That means that about 8% of Americans are in denial…

    The most popular modeling of household incomes is use quintiles (popular because it fits other data sets about net worth, expectations, lifestyle, etc.). The traditional criteria of middle class is therefore the three middle quintiles. The bottom 20% being lower class, and the top 20% perforce being the upper.

    Obviously, the number of people per household would be a factor. and location another.The lowest quintile goes from $o to about $21,000, the next lowest from that to about $39,000. It’s likely that a single person living in say, Saint Louis, earning $36,000 might think of herself as middle, not lower middle, class; contrasting with the single person living in the BosWash megalopolis.
    Also obviously, I doubt that anyone earning less than $21,000, even single, thinks of themselves, if/when, they do as being anything other than working class, or poor.
    On the other side of the coin – you often here people with household incomes of $250,000 denying that they are upper class – they live in expensive cities, they have 5 people in their household, etc. Still, given that, it’s hard to say that they really are part of the typical middle class, earning 5 times the median, regardless.

    Class is an aspect of our society that I think most Americans are either conflicted about, or confused, or both.

  7. Joe Friday says:

    Moody’s threatens to downgrade U.S. credit rating.


    Record demand for 3-year treasuries at auction today.

  8. Davidocity says:

    “Fun with Cognitive Dissonance: Record Partisan Gap in Views of Economic News”

    This report shows that there is cognitive dissonance at the societal level, and confirmation bias at the political party level that is no doubt fed by politically aligned media sources. This report, I believe, is simply measuring the news media bias effect and how well each party is managing its message. Notice how the Independents almost perfectly split the gap between the two parties.