My morning reads:

• Investing forecasts omit key factor: Luck (FT Alphaville) see also Silly Season Begins! (The Reformed Broker)
• Analysts Get Gloomy, Right on Schedule (WSJ)
• A Cooperative Approach on ‘Too Big to Fail’ Banks (DealBook)
see also The UK is well ahead of the US and the EU in its use of fiscal rules (London School of Economics and Political Science)
• MBS industry takes a hit in second NY ruling on trustee liability (Thomson Reuters)
• High-Frequency Trading: A Grave Threat to the Markets and the Economy (24/7 Wall St)
• Homebuilders Boom as Lending Masks Uneven U.S. Recovery (Bloomberg)
• China’s banking Weapons of Mass Ponzi problem pops up again (FT Alphaville)
• Google Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion (Bloomberg) see also Windows 8’s Clarity Problem (Bits)
• Opportunity, a Mars Rover Past Its Best-By Date, Keeps Going (NYT)
• The history of AOL as told through New York Times crossword clues (Quartz)

What Are You Reading?



Russell 3000 Top Performing Sectors YTD

Source: Bespoke

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.

16 Responses to “10 Tuesday AM Reads”

  1. rd says:

    Getting a fiscal cliff deal is going to be brutal. This polling explains why Boehner wants Obama to propose the spending cuts that the Republicans are demanding:

  2. VennData says:

    The Apple Tax – America’s costly obsession

    When are you middle-class, aspirational buyers going to wake up? A phone does not make you cool. A computer does not make you cool. A music player does not make you cool. They make you poorer.

  3. willid3 says:

    RD, think its always been that way. every one will always want the other ___ to pay for what ever they want to cut. example the GOP wants to cut entitlements, but wants to save defense spending. while The democratic party wants to cut defense while saving entitlements. and in taxes its always been the same. the 2003 tax cuts were much more in favor of the top, than any others. if you were in the middle you were lucky if you got a 1% tax cut, if that. which was mostly lost to the fact that your income didn’t go up any at all.

  4. willid3 says:

    VennData, while Apple stuff is generally much more expensive than equivalents, a lot of the change is that we have prices most out what was popular back when we were growing up. it used to be that as we grew up we would buy cars and others. now they can’t do that. so they started buying other stuff that is lots cheaper.

  5. willid3 says:

    hm. not sure listening to Ceo’s on that fiscal slope makes a lot sense considering how well they they have managed their own pensions (which are basically a private version of social security). of the 71 chiming in on the slope, 41 have pensions, of those only 2 are fully funded. (wonder if the executives are fully funded? can you say of course they are!!! but they are cutting every one else’s. makes one wonder why we allow them to do that? ) .

  6. znmeb says:

    Barry, I read “High-Frequency Trading: A Grave Threat to the Markets and the Economy (24/7 Wall St)” three times and was unable to find the author’s name anywhere in the piece. I can’t seem to find authors’ names on any of their pieces. As a journalist, that dismays me greatly, especially in an area as sensitive and controversial as HFT. If they aren’t willing to stand by their opinions by name, I don’t think people should waste their time on the site.

    M. Edward (Ed) Borasky, 11 December 2012

  7. James Cameron says:

    > Windows 8’s Clarity Problem (Bits)

    “Microsoft is assuming that buyers are up on all of its products, and clear on how to begin using them”

    Sorry, I don’t see it . . . if consumers can figure out their smartphones they can figure out Skydrive . . . the bigger issue in this story – the one the author didn’t focus on – was the inability to download Chrome. He left his audience dangling on the story behind that.

  8. VennData says:

    In Talks, House Majority Weighs Loyalty to Voters

    “…As their leaders inch toward agreeing to higher tax rates, dozens of House Republicans find themselves caught between the will of a larger American public that favors higher taxes on the rich and the wishes of constituents who re-elected them overwhelmingly to oppose the Obama agenda at every turn..”

    “…With the last House race decided over the weekend, the conflict between a Democratic president convincingly re-elected to a second term and the House Republicans who held their majority illustrates a striking dichotomy in the nation’s body politic: the president and a majority of senators, including a growing number of Republicans, back compromise on tax rates and say the public is on their side, and a majority of the House, in artfully drawn districts, claim just the opposite…”

    The problem with this GOP “calculation” is that the majority of voters did not vote for Republicans in the House:

    Patriots? No. Statesmen? Hardly. Trying to forge a permanent majority? G-L”O”L-P.

    No they are serving their masters, the uber rich, at the cost of American prosperity, our future and our leader of the Free World. So Cliff Assness, The Koch brothers and Sheldon Adelson save a little on their massive net profits.

    The Commander-in-Chief is showing real leadership here. Get behind him. Tell your GOP Congressstick to get off it and support the will of the people AND do the right thing.

  9. foss says:

    how is this not the biggest story of the day? here or elsewhere?

    State and federal authorities decided against indicting HSBC in a money-laundering case over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system.

    Instead, HSBC announced on Tuesday that it had agreed to a record $1.92 billion settlement with authorities. The bank, which is based in Britain, faces accusations that it transferred billions of dollars for nations like Iran and enabled Mexican drug cartels to move money illegally through its American subsidiaries.

    MY GOD.

  10. RW says:

    For those who would really like to better understand the legal intersection of Medicare, Medicade and the Affordable Care Act (AKA Obamacare or ACA). HT Brad DeLong

    Let Fifty Flowers Bloom: Health Care Federalism after National Federation of Independent Business V. Sebelius

    This paper focuses on what the ACA is more than what it is not. The ACA’s individual mandate is Constitutional, as is the Medicaid expansion, in large part. The states have been re-enforced in their historic roles as Medicaid makers or experimenters. A close reading of the statute and the NFIB opinion with an understanding of the background of health care markets is in order to provide a counterweight to the tendency of Americans to use the ACA as ‘something of a blank slate onto which Americans … [impose] their own hopes, fear and concerns.’

  11. MorticiaA says:

    Community bankers want Congress to extend the unlimited FDIC insurance coverage for non-interest bearing accounts another two years (probably won’t get much support in Congress, my guess). Seems a bit self-serving of the community banks, IMHO.

  12. Jojo says:

    The High Cost of Congress’s Budget Procrastination
    December 06, 2012

    Washington will probably stop short of letting the U.S. go over the fiscal cliff on Jan. 1, most likely with a temporary fix and a promise to work out a budget in the near future. That would only exacerbate a long-standing problem for the country: Procrastination has a price tag.

    Since 1952, according to the Congressional Research Service, Congress has completed its spending bills by its own deadlines only four times–in 1977, 1989, 1995, and 1997. Year after year, lawmakers enact continuing resolutions to tide agencies over until appropriations bills pass. Fiscal year 2011–all 365 days of it–was paid for this way. Though a hyperpartisan year on Capitol Hill, it was by no means exceptional. According to the CRS, 178 days every year, on average, have been funded through continuing resolutions since 1977. Basically, half the time there is no budget.

    The uncertainty creates all kinds of inefficiencies, according to a new report by the IBM Center for the Business of Government, a Washington think tank.

    The bottom line: Because Congress takes so long to make spending decisions, contractors charge agencies risk premiums. Taxpayers pick up the tab.

  13. Jojo says:

    Republicans are a dying breed… :)
    December 8, 2012
    A Lost Civilization


    MY college roommates and I used to grocery shop and cook together. The only food we seemed to agree on was corn, so we ate a lot of corn.

    My mom would periodically call to warn me in a dire tone, “Do you know why the Incas are extinct?”

    Her maize hazing left me with a deeply ingrained fear of being part of a civilization that was obliviously engaging in behavior that would lead to its extinction.

    Too bad the Republican Party didn’t have my mom to keep it on its toes. Then it might not have gone all Apocalypto on us — becoming the first civilization in modern history to spiral the way of the Incas, Aztecs and Mayans.

    The Mayans were right, as it turns out, when they predicted the world would end in 2012. It was just a select world: the G.O.P. universe of arrogant, uptight, entitled, bossy, retrogressive white guys.

    Gun sales have burgeoned since the president’s re-election, with Black Friday weapons purchases setting records as the dead-enders rush to arm themselves.

    But history will no doubt record that withering Republicans were finally wiped from the earth in 2016 when the relentless (and rested) Conquistadora Hillary marched in, General Bill on a horse behind her, and finished them off.