My Friday morning crash anniversary reads:

• Ask A Banker: What’s A Derivative? (Planet Money) see also A Tax to Kill High Frequency Trading (Forbes)
• The War Over Economic Facts (Businessweek)
• Another stock crash like 1987’s is inevitable (MarketWatch) but see Get set to buy stocks after a market crash (MarketWatch)
• SEC’s Gallagher Challenges Idea of FINRA as Advisor SRO (Advisor One)
• Google Under Pressure to Wring Sales From Mobile Users (Bloomberg) see also Microsoft to AMD Follow Intel Suffering From PC Weakness (Bloomberg)
• 1987: A Computer Lesson Still Unlearned (NYT)
• 2nd presidential debate in graphs (Ezra Klein’s WonkBlog) see also The Democrats play hide and seek with Mitt Romney (Economist)
• The Onion Book of Known Knowledge (The Onion)
• Sheila Bair: 5 Steps Obama or Romney Must Take to Fix Wall Street (Fiscal Times) see also Of Bulls and Bair (Rajiv Sethi)
• Readers’ Poll: The Best Led Zeppelin Songs of All Time (Rolling Stone)

What are you reading?



Debt Fuels a Dividend Boom

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.

22 Responses to “10 Friday AM Reads”

  1. ilsm says:

    Tailgunner Romney, stop using dead American heroes for political gain.

  2. thomas hudson says:

    nate silver says pay scant attention to that gallup poll with romney up 7. the president still has 65% chance of winning the electoral vote, per his model:

  3. AHodge says:

    god bless sheila i have ordered the book but a fantastic summary
    no one knows as much about resolution done right, regulation and what decisions were made

    i think sethi muddled the CDS holder story
    they were only indirectly betting on lower home prices

    CDS holders especially naked,are basically bettors on default
    but got swing in the non workout decisions saying let the CDS default
    im a sometime shortseller
    and i dont have trouble with folks trading on negative news and information
    that how markets should work
    but i have a huge problem with people who want trouble and failure and have a stake in it
    having a swing in policy decisions

    and thats the irony
    not the default bettors being joined by senior tranche holders who did not want workouts
    that was understandable on their view of protect the “good” CDO s and MBOs
    just massively wrong they all tanked
    and especially morgan stanley who bet the worst would blow up
    but wrote even more insurance on the “better”

    SEC and Finra fighting over “regulatory” turf?
    makes me vomit they are both do overs

  4. James Cameron says:

    Another stock crash like 1987’s is inevitable

    Marketwatch is certainly milking this subject for everything it’s worth, and more:

    10 big lessons from the 1987 stock-market crash

    Best time to buy stocks is after a market crash

    Get set to buy stocks after a market crash

    Protect your money from the next stock crash

    Crashes are money-making opportunities

  5. VennData says:

    Re. the Economist’s high-mindedness:

    “…To stick my neck out a bit, I hope this new tack gains some traction, because Mr Romney—whether you are a supporter of his or not—has indeed done his level best to avoid any serious discussion of his plans if elected, beyond arithmetically implausible promises to fix the deficit while cutting tax rates across the board and tidying up various tax breaks in a way that is both revenue neutral and distributionally neutral (ie, does not make the tax system more or less regressive), while refusing to spell out how this might work…And I would like to think that such blatant obfuscation brings electoral penalties…”

    Reagan and Bush were re-elected when they did it, so it doesn’t. Romney surged in the polls after he denied it in front of 70 million debate watchers, so no it doesn’t.

    Lies work, that’s why Romney is lying about his tax plan.

    But even if you believed that Romney’s plan adds up, the idea that if you do this revenue-neutral thing to the tax code it will make “businesses invest and hire more” when it doesn’t change how much people pay in taxes at the end of the day (that’s what ‘revenue neutral’ means) is ludicrous.

    You GOP voters and your hatred of Democrats is comical. You believe lies.

  6. slowkarma says:

    One thing I read was Barry’s introductory line,

    “My Friday morning crash anniversary reads:”

    It made me wonder, how much did the crash anniversary have to do with the down market today? Or was it all Microsoft/Apple/Housing? (I saw that Apple was down $14 and change at midday…Is this an opportunity or a warning? Will there be a big bump when the mini-iPad appears?

  7. DeDude says:

    Yes tax-cuts can create more jobs – but they have to be targeted to the real job creators (people who consume stuff such that more stuff has to be made). Handing money to the people who spend most of their income in the Wall Street casino does nothing for jobs. For people with a brain this is not a revolutionary concept – consumption is the only driver of the economy since investment are not done until consumption drives up a need for investments – yet about half the population support a moron who is ready to repeat “trickle down” because it worked for him and his friends, even though it never stimulated economic growth.

  8. MidlifeNocrisis says:

    I never heard a Led Zeppelin song that I didn’t like.

  9. VennData says:

    Illinois’s own member of the “Science Party.”

    “…At a televised debate with opponent Tammy Duckworth, Republican Walsh declared that abortion should be outlawed in all circumstances, including to save the life of the mother. But it was his comments to reporters after the event at WTTW Channel 11 that sparked the most attention. Walsh said that medical advances had rendered it unnecessary to ever perform an abortion to save a mother’s life…”,0,127789.story

    Potential Illinois Employers,

    We have lots on non-tea-partiers here who can do technical tasks and can think.

  10. JoseOle says:

    Midlife: You must be a drummer if you like Moby Dick from Led Zep II.

  11. thomas hudson says:

    hidden camera at a haunted house:

    re: zeppelin – a little disappointed stairway was selected number one. good tune, but i was hoping that after all these years you might have some contrarians amongst the rolling stone reader base.

  12. formerlawyer says:


    The other worrying thing will be the “nudge & wink” factor: if Governor Romney surrogates eg. his wife on the View, are to be believed President Romney would never, no never , actually govern as an extreme right President. That was just feeding red meat to the Republican base and now he govern as the “Moderate Mitt”.

    The issue of course will be whether, as the author of the Economist piece says President Obama’s campaign can successfully tag Mitt Romney as a serial liar on the positions or the Moderate Mitt (with the nudge & wink factor) confuses enough swing state voters to elect him.

  13. VennData says:


    We all know ( well, the literate among us) Obama said he was a moderate, governed as a moderate – even during extraordinary times – but has been packaged as a North Korean-style Abortionist with Kenyan characteristics by the Citizens’ United-driven SuperPACs.

    So we can’t really know how anyone’ll govern, but you simply can’t fit $5T of deduction removals into a 20% income break.

    What irks me is the idea that if you cut tax rates, but get it back exactly by ending deductions, what difference will it make? EXAMPLE: I make $100K , I pay$ 20K in taxes. Am I going to hire another worker because under Romney’s plan I’m only paying er.. a.. $20K in taxes?

    Forget whether the’s lying, the whole thing makes no sense.

  14. VennData says:

    “…Joblessness fell in 41 states and the nation’s capital in September, as employers added jobs in most of those states, the Labor Department said Friday…”

    The Chicago guys bought them off with their stimulus. It wasn’t stimulus it was bribulus. Notice how it’s only liberal states where they said things are getting better, more or less. If you can’t debate (Obama got killed again in the second debate) you bribe.

    – Jack Welch.

  15. VennData says:

    How many Jack Welch’s does it take to screw in a light bulb?

    One to outsource it

  16. willid3 says:

    to much stability? do we really wants banks to fail regularly?

  17. VennData says:

    “…Americans’ belief in the reality of global warming has increased by 13 percentage points over the past two and a half years, from 57 percent in January 2010 to 70 percent in September 2012…”

    We’ve got to get those Global Warmings guys to do our “lower income tax rates” stuff. Hopefully none of them are from Chicago, I’ve pissed those guys off real good. Hey you’ve got to be one or two in every market or we get rid of you. We got New York and LA. So sorry Chicago, You’re out.

    – Jack Welch

  18. VennData says:

    Koch Sends Pro-Romney Mailing to 45,000 Employees While Stifling Workplace Political Speech

    Vote creators!

  19. cyclohexane says:

    from The Baffler:

    “The Joke’s on you”