My morning reads:

• The Absence of Market Fear is Scary (Barron’s) see also The Biggest Risk: Complacency Over Fiscal Cliff (Barron’s)
• Wait for a Good Pitch to Hit (Above the Market)
• Are BRICS the World’s New Banker? (The Diplomat)
The invisible bailout: Why the US economy is growing while Europe’s slides (Quartz)
• The death of volatility? (FT Alphaville)
• The Case for More Stimulus (And Bigger Deficits) (Policy Shop) but see World Economy in Best Shape for 18 Months, Poll Shows (Bloomberg)
• Which has fared best in the crisis, old money or new? (The Telegraph)
• Boring Conference is Surprisingly Interesting (Slate)
• Holiday Shopping Tips From a Behavioral Economist (Bloomberg) see also My Annual Holiday Shopping Gift Ideas (TBP)
• How to make your children intelligent (Economic Logic)

What are you reading?

 

Invisible bailout: Why US economy is growing but Europe’s  slides

Source: Quartz

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.

12 Responses to “10 Thursday AM Reads”

  1. Conan says:

    First I read that there is a problem finding “skilled ” labor to fill all the open jobs, especially in manufacturing>

    Now low and behold their having trouble finding construction workers????

    Construction industry faces worker shortage
    http://www.usatoday.com/story/money/business/2012/11/28/construction-workers-shortage/1714471/

  2. Conan says:

    The student loan bubble will soon be very much a big topic in mainstream news, but as they are slow it won’t get there until it truly POPS!

    Five Ways the Student Loan Bubble Mirrors the Housing Crisis
    http://www.ncpa.org/sub/dpd/index.php?Article_ID=22528

    The Scariest Chart Of The Quarter: Student Debt Bubble Officially Pops As 90+ Day Delinquency Rate Goes Parabolic
    http://www.zerohedge.com/news/2012-11-27/scariest-chart-quarter-student-debt-bubble-officially-pops-90-day-delinquency-rate-g

    The Student Loan Bubble: Only Stupid People Will Be Surprised When It Bursts
    http://abovethelaw.com/2011/08/the-student-loan-bubble-only-stupid-people-will-be-surprised-when-it-bursts/

  3. RW says:

    How Political Campaign Spending Brought Down the Roman Republic
    If Cato, Cicero, or Julius Caesar were here today, they would recognize the danger posed by Citizens United.

  4. Greg0658 says:

    Q: “fared best” A: old money .. interest’g bloggers there too

    on that graph and something I read here @TBP and never referenced before ..
    clawback depth ..
    http://www.ritholtz.com/blog/2012/11/solving-the-too-big-to-fail-problem/
    “This includes reforms to tri-party repo, which are underway, and necessary” ..
    wondering on the depth of that .. does that mean if an individual buys an iPhone with a credit card and then files for bankruptcy or defaults on that credit card that Apple has to pay it back? ..
    take that further into the school loans and beyond ?

  5. NoKidding says:

    Conan,

    I love how everything ZH looks at “goes parabolic”.
    No doubt there is imminent danger of a blow-off top, loomimng like a 5-sigma e-mini whale hunting for fat fingers.

  6. James Cameron says:

    Different project, same script . . . interminable developmental problems and delays, immense cost overruns . . . the numbers eventually produced are far fewer than originally planned for, and . . . its capabilities no longer address new threats. We are often told that the upcoming sequestration will hollow out our military, yet our weapon procurement process is a far greater long-term threat to our military than any budget cuts. In fact, part of the problem with our procurement process might well be that far too much money has been made available.

    “It is simultaneously too big to fail and too big to succeed,” he said. ‘The bottom line here is that they’ve crammed too much into the program. They were asking one fighter to do three different jobs, and they basically ended up with three different fighters.’

    “Mr. Kendall, who became the Pentagon’s top weapons buyer in May, has said that diving into production so soon amounted to ‘acquisition malpractice.’

    “Mr. Harrison, the analyst at the budget center, said the willingness to ‘roll the dice’ reflected the peculiar incentives at the Pentagon, where rushing into production creates jobs and locks in political support, even if it allows programs to drift into trouble. Lockheed and its suppliers on the F-35 employ 35,000 workers, with some in nearly every Congressional district.”

    Costliest Jet, Years in Making, Sees the Enemy: Budget Cuts

    http://goo.gl/pW5aV

  7. hue says:

    Interesting story about money and politics in Rome. Read some of the comments in the story and this comment was interesting:

    “What I find most obviously absent in this article is any mention of the bloodshed of the late Republic. Not only did the candidates throw violent mobs against each other in the course of these elections, but the most powerful ones controlled massive armies that repeatedly went to war against one another. First there was Sulla vs. Marius, then Caesar vs. Pompey and finally Octavian vs. Antony. Each one of these wars had many thousands of casualties, that affected every segment of society. Comparing recent elections to the fall of the Roman Republic would be more apt if Bush controlled the 82nd Airborne and Gore controlled the Marines and the two sides clashed in the streets of DC with hundreds of thousands of casualties, included many members of Congress. Now that’s the way to discredit a democracy.”

    Crossroads GPS with Blackwater troops vs ???

    OT, I read The Fountainhead in my 20′s and thought it was a good book. Atlas Shrugged, not so much. And two decades later, I was shocked to find that Rand was a right-wing, libertarian hero. I stumbled across this quote from Nora Ephron.

    “Like most of my contemporaries, I first read The Fountainhead when I was 18 years old. I loved it. I too missed the point. I thought it was a book about a strong-willed architect…and his love life…. I deliberately skipped over all the passages about egoism and altruism. And I spent the next year hoping I would meet a gaunt, orange-haired architect who would rape me. Or failing that, an architect who would rape me. Or failing that, an architect. I am certain that The Fountainhead did a great deal more for architects than Architectural Forum ever dreamed.” The New York Times Book Review (1968)

  8. Joe Friday says:

    Bob A posted:

    $25 Tablets, $2 Mobile Data Plans, and Zero Margins: How the Internet Is About to Gain Three Billion New Users

    I noticed when Buffett was on Charlie Rose the other night, he mentioned the stock market research he’s been doing lately is delineating which companies will be disrupted by the internet and staying the hell away from their stocks.

    Charlie responded that must be why he recently purchased railroads, a chewing-gum maker, and reinsurance companies.

  9. rd says:

    NY and NJ are requesting $80 billion from the feds for Sandy damage: http://thehill.com/blogs/on-the-money/appropriations/269931-lawmakers-press-for-giant-sandy-bill-amid-fiscal-cliff-talks

    I haven’t seen a detailed breakdown of the request but the request to waive the cap on house repair costs is worrisome. Wind damage and trees falling on homes are covered by regular home insurance and inundated homes in a 100-yr floodplain should be covered by subsidized flood insurance, so I assume that Schumer is requesting a lot of money for uninsured homes that got hit by the storm surge.

    Two points here:

    1. If people live in a mapped flood zone, then they should be carrying flood insurance. If they elect not to pay for government subsidized insurance, then it is unclear to me why I, as a taxpayer, should be picking up their tab that they elected not to address when they had the opportunity. I understand covering damage to people outside of mapped flood zones as the flooding would be a low risk event that people did not understand.

    2. If people build expensive housing inside mapped flood areas, then that is their personal problem, not mine. As a country we are subsidizing far too many people putting expensive housing and other land uses in known, mapped floodways. If a community wants to zone areas for housing in flood zones, then the responsibility should rest with the local community. There is too much moral hazard in giving local communities the incentive to collect property taxes on land where the federal government will pick up the tab when the inevitable disaster occurs. Presumably if the real cost of having land in these areas, including the cost of flood repairs, is known then the land and house prices will be lower than if they are in a financially risk-free environment – I believe that is how free markets work.

    FEMA flood mapping is easily found on-line at: https://hazards.fema.gov/wps/portal/mapviewer

    BTW, I am all for providing money to local communities for providing emergency evacuation costs and local infrastructure repairs and replacement, particularly for land uses that keep high-impact uses, such as housing and manufacturing out of floodplains. In a number of areas, it also makes sense to subsidize land purchases to create low-impact land uses, such as parks, farmland etc. Low cost tourist uses that don’t have people living there, like boardwalks and inexpensive restaurants and stores are also good uses of that land as they can be evacuated easily and replacement is not particularly costly if the flooding is infrequent.