My morning reads:

• Almost All of Wall Street Got 2012 Market Calls Wrong (Bloomberg) see also Gold Set for Worst Run Since 2004 as Fed Sees End to Purchases (Bloomberg)
• Lessons From Europe on Averting Disaster (NYT)
• Inside UPS’ Worldport: How a shipping titan moves 2,000 packages every 17 seconds (engadget)
• Happy New Year? Not for Bonds (WSJ)
• Like Wine, Hedge Funds Have a ‘Terroir’ (AllAboutAlpha)
• At Long Last, A Permanent Patch for A Dreaded AMT Tax (TIME)
• Did Ricardian Equivalence kill the Pigou effect? (Mainly Macro)
• What Will Make These Fiscal Showdowns Stop? (Harvard Business Review) see also Up Next, the epic battle over debt (Chicago Tribune)
• Instagram users: You ARE the product (MarketWatch)
• The Hundred Best Lists of All Time (The New Yorker)

What are you reading?


Investors Sour on Pro Stock Pickers

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.

17 Responses to “10 Friday AM Reads”

  1. PeterR says:

    Re: Instagram you are the market article, repeat after me please:

    Fa(r)ceBook . . . Fa(r)ceBook . . . Fa(r)ceBook . . . (Ad infinitum) . . .

    Have a good weekend.

  2. VennData says:

    Who are these people who hired “155,000??” Nobody I know! This is just to make Boehner look bad, well, it won’t work! Nothing the Chicago Guys can do will make John Boehner look bad.

    — Jack Welch.

  3. VennData says:

    White House says Congress must raise debt limit


  4. CharlesII says:

    I think it was Pierce who pointed out in his inimitable way that the prosperous have their precious AMT indexed to inflation, but the poor do not have the wages on which they are expected to survive similarly indexed. The Congress doesn’t even do a good job of pretending to care about the poor.

  5. eliz says:

    Re: Gold Set for Worst Run Since 2004 as Fed Sees End to Purchases

    When I look at the OMB numbers for the U.S. Budget, 2011 – 2022 (see Table S-1, Budget Totals), it is hard to imagine The Federal Reserve will actually stop its money creation. I suspect any gold sell off will be fairly short lived.

  6. TheUnrepentantGunner says:


    It’s rare when i disagree with you, but I’m going to take the other side of you on the instagram issue here.

    Of COURSE you’re the product, as you are with ANYTHING that’s free (facebook, twitter, network tv, etc).

    The fact that they can do these things (if you look at the details it’s not as crazy as you think), shouldnt surprise you.

    and then, there’s this

    so yes, you’re the product. if you quit, that’s fine.

    I chose not to join, and that’s also fine.

    Either way, the fact that maintenance/storage/manpower costs for each facebook account cost $20, and for facebook to be profitable they have to monetize your account to the tune of > $20 gives me pause about the company in general, and that’s an area where i disagreed with you but may now agree with you.

  7. James Cameron says:

    > It’s rare when i disagree with you, but I’m going to take the other side of you on the instagram issue here.

    I wasn’t aware BR did more than post the story . . .

  8. Bob is still unemployed   says:

    re: Inside UPS’ Worldport

    The Ultimate Factories show on National Geographic channel recently re-ran the hour-long episode devoted to the UPS Worldport. That episode is definitely worth catching the next time it comes around.

  9. Bob is still unemployed   says:

    @ TheUnrepentantGunner – Of COURSE you’re the product, as you are with ANYTHING that’s free (facebook, twitter, network tv, etc).

    You’re also the product for some things you pay for, e.g., magazine subscriptions. The publisher of the magazine sells your attention to the advertisers.

  10. willid3 says:

    this would seem to be the most horrifying thing in health care

    awakening during surgery.

    and nobody knows really why the drugs they give actually cause unconsciousness. or what consciousness is

  11. Jojo says:

    Forget discouraged, 3 million workers hopelessly unemployed
    By Annalyn Kurtz @CNNMoney January 4, 2013: 9:43 AM ET
    NEW YORK (CNNMoney)

    Employers may be hiring, but there’s another big problem with the job market that isn’t being tracked as closely: the hopelessly unemployed.

    An often overlooked number calculated by the Labor Department shows millions of Americans want a job but haven’t searched for one in at least a year. They’ve simply given up hope.

    They’re not counted as part of the labor force, the official unemployment rate, or the category the Labor Department refers to as “discouraged workers” — those who haven’t bothered to look for work in the last four weeks.

    These hopelessly unemployed workers have just been jobless so long, they’ve fallen off the main government measures altogether.

    “The way we’re measuring the long-term unemployed has a lot of holes in it,” said Stephen Bronars, senior economist for Welch Consulting. “A person can be discouraged for a while, but then gets bumped over into this other category.”

    The Labor Department started tracking this group in 1994, but it doesn’t get much attention. Recently, it has started growing more rapidly than usual, even as other job measures have shown improvement.

    Five years ago, before the recession began, about 2.5 million people said they wanted a job but hadn’t searched for one in at least a year. Now, that number is around 3.25 million.

  12. summersorama says:

    re chart:
    It’d be helpful to see another part of that chart that displays actively managed fixed income mutual funds. Obviously a lot of money is coming out of equities, but its not all going back into ETFs

  13. rd says:

    re: Wrong Wall Street calls

    One of the great mysteries of the universe is why John Paulson didn’t cash in his chips and pack up his shop at the end of 2009. He had one-upped George Soros on a massive trade and would be remembered as a bona fide investing genius.

    Instead he has worked very hard over the past three years to prove that even a monkey can make a good pick occasionally but the rest of the time will be miserably wrong.

    Guys like Soros, Peter Lynch, Sam Zell etc. were able to demonstrate investing prowess over many years and then further proved their prowess by getting out near the top.

  14. TheUnrepentantGunner says:

    James Cameron: two weeks earlier (?) he had a long post trashing instagram and announcing he was quitting it. I was on the run reading it then and didnt comment, but when he posted this article i thought it was worth it to take the other side of the issue.

    rd: zell’s last few acquisitions (a chicago newspaper i think) didnt end so well. i guess that’s still kind of near the top though.

    i also think part of it is some of those guys genuninely had an edge. but that edge, over time, goes away as other people discover your edge.