Good Sunday morning — a few reads for the middle of your 3 day weekend:

Alan Blinder: Financial Collapse: A 10-Step Recovery Plan (NYT)
• Google says Wall Street estimates need adjusting (Reuters) see also Have Mutual Fund Rating Agencies Lost Their Mojo? (Fiduciary News)
Channeling Marshall McLuhan Markets to Washington: You know nothing of our work   (Washington Post)
• How to Cut Megabanks Down to Size (NYT) see also Big Banks’ Biggest Foe Says It’s Time to Break Up (Fiscal Times)
• Fed Concerned About Overheated Markets Amid Record Bond Buys (Bloomberg)
• How to Owe Capital-Gains Taxes Without Even Trying (WSJ)  see also Prepare for zero growth, no recovery, resource wars (Marketwatch)
• The End of Labor: How to Protect Workers From the Rise of Robots (The Atlantic)
• Regionals Outplay Big Banks (WSJ) see also JPMorgan’s Jamie Dimon Offers Illusion of Transparency (Bloomberg)
• Americans Similarly Dissatisfied With Corporations, Gov’t (Gallup)
• The 150 Things the World’s Smartest People Are Afraid Of (Motherboard)

What’s for brunch?

 

Navigating the Dividend Storm

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.

21 Responses to “10 Sunday Reads”

  1. willid3 says:

    Here’s a scene that will be familiar to anyone who’s ever taken an introductory economics course. The professor has just finished explaining that in economics, “efficiency” means that there are no possible gains from trade. Then some loudmouth kid in the back raises his hand and asks: “Wait, so if one person has everything, and everyone else has nothing and just dies, is that an ‘efficient’ outcome?” The professor, looking a little chagrined, responds: “Well, yes, it is.” And the whole class rolls their eyes and thinks: Economists.

    i guess they forgot to ask the real question. if only one person has every thing, is there an economy? and does it matter? since the rest will have long before that have revolted since they get nothing out of it

  2. mathman says:

    interesting lecture (the very end applies to your field)

    https://www.youtube.com/watch?v=DFFVSvAr7Wc

  3. dctodd27 says:

    Just a thought on the top graph from WSJ:

    Duration of 10 yr Treasury: 6ish?
    Duration of S&P 500: 50+

    Why is this a fair comparison?

  4. RW says:

    Might be something in the air. A couple of relative novices attempt to correct what they imagine is an error on the part of the master actuaries at SSA and are, um, corrected in turn.

    You Know Nothing Of Our Work (ht PK)

    King and Soneji developed their own projection methodology for mortality and made a series of assertions in their op-ed about the methods used by the Office of the Chief Actuary. As with all new entrants into this field of analysis, their work may ultimately provide value in the continuing evolution of our methods. However, the assertions in their op-ed require some response and clarification.

    The stiletto seems small but in skilled hands the wound is deep and often mortal. In this case it is followed by a thoughtful, point-by-point evisceration which serves as a good illustration of what a full-scale academic take-down looks like; in its own way it is more brutal than a beating.

  5. ConscienceofaConservative says:

    Two on Tim Geithner tipping the banks on a rate move(the New York Times has one too but the title shows bias on the part of the grey lady)
    http://www.reuters.com/article/2013/01/19/us-usa-fed-geithner-idUSBRE90I04220130119
    http://www.zerohedge.com/news/2013-01-19/presenting-50-point-sp-500-move-courtesy-illegal-geithner-leak

  6. VennData says:

    Please oh please, more garish Tarrentino violence for the kids!

    http://gawker.com/django-unchained/

    When Capitalists make movies! Hooray for Hollywood!

  7. krice2001 says:

    “Prepare for zero growth, no recovery, resource wars”. I guess most distressing to me is that I see Paul B. Farrel (Market Watch) as one of the more pragmatic people “in the room”. The picture he paints is dim and hopefully inaccurate. But something to consider.

  8. czyz99 says:

    On the 150 things I noticed stress mentioned numerous times. This is a big one for me as I have suffered from excessive worrying and stress my whole life. Stress has sapped my mental energy, impaired my intellectual powers, impaired my physical health, and no doubt shortened my life. If I were to tell a young person one thing it would be learn to control stress and everything else in your life will flow from there.

    Venn- maybe I am an old fogey, but I can’t for the life of me understand how people can watch these movies. Basically another torture movie. Whippings, beatings, tendons being severed, people frozen alive, hands plunged into boiling acid. Ugh!

  9. VennData says:

    Senate Democrats Will Draft a Budget Blueprint

    http://thecaucus.blogs.nytimes.com/2013/01/20/for-first-time-in-four-years-senate-democrats-will-draft-a-budget-blueprint/

    Democrats are ramming a budget back down Republican’s throats, days after the GOP folded, failed and rolled out their coordinated spin job: “Now let’s see what the Senate will do.” ROFL! This is great news for the nation.

    By giving the Senate carte blanche (And telling everyone that will listen to them on Fox, Briebart, Newsmax, Patriot Press etc.. their usually spin: that the Senate Democrats won’t do anything.. hilariously after they themselves are the ones who aren’t) the GOP will now be in a position to either accept the third straight Obama cram down on them, or stop gov’t. ROFL!

    The GOP is simply incompetent. They are plying by the old rules: that you can make things up, do nothing and spin your way out of it, and people will believe you because… uh because… well my dad voted Republican etc…

    But hate to tell you McConnell and Boehner, that’s not the way it works now. Enough people are tuned to your games. That’s what happened to you last November. Enough people are paying attention to the GOP nonsense, but the Grand OLD – and I mean OLD! – Party can’t change how they operate. They are too bureaucratic and bound to all their crazy coalition partners.

    This is great news for the nation. And it’s great to see the majority of Americans waking up to the facts. The rest will be dragged along screaming about Kenya, Birth certificates, and all the large-font rubbish they still get emailed to them and how Sandy Hook is an Obama-created hoax.

    Businessmen, You need to get with the program. the people who brought you the Medicare Part D, Iraq, and longest US war in history in Afghanistan ain’t going to be responsible for cutting gov’t spending. No way, no how. They have had three chances to do it since the election and they just try to pin cuts on Obama. Don’t you see that?

    Open your eyes GOP genuflector! The nonsense is over.

  10. formerlawyer says:

    @RW
    That was brilliant! Crazy deaths my ass.
    Another one is found here:
    http://socsecnews.blogspot.ca/2013/01/smackdown-of-chief-actuary.html

  11. romerjt says:

    “What worries me is that we are increasingly enmeshed in incompetent systems, that is, systems that exhibit pathological behaviour but can’t fix themselves.”

    The government – no explanation needed

    The family – with half of all children born to unmarried couples I just don’t see this playing out well for the kids and liberals can’t talk about it b/c it’s politically incorrect to imply that single women can’t successfully raise children just as well as married couples.

    Criminal justice – for profit prisons will need clients and everybody needs a gun.

    Education – 30% don’t graduate, about half of all you start college don’t finish and everybody could have picked them out before they started by looking at their grades and habits.

    Health Care – the answer is Obamacare or subsidies to the insurance industry?

    geeze now I’m depressed . . the only thing left for this Jet fan is that Patriots lose today.

  12. James Cameron says:

    “Millions of dollars were loaned on cozy and potentially illegal terms to some of the bank’s directors and its top lending executive. Scores of millions more went out the door in speculative real-estate loans, including million-dollar loans to Russian amateur homebuilders recruited by a man now wanted for bank fraud and money laundering.”

    Insider loans rife as bank collapsed

    http://goo.gl/Yk7qV

  13. James Cameron says:

    > Might be something in the air. A couple of relative novices attempt to correct what they imagine is an error on the part of the master actuaries at SSA and are, um, corrected in turn.

    Perhaps the response – it’s hard to imagine there won’t be something – will be equally riveting.

  14. RW says:

    >Perhaps the response – it’s hard to imagine there won’t be something – will be equally riveting.

    In the echo chamber I’m sure any rebuttal King and Soneji attempt will be considered ‘riveting’ but in the real world their methods were sloppy and displayed ignorance of the subject — e.g., they double counted the effects of smoking and obesity because they ignored SSA actuarial methodology — but fortunately for them there is very good money to be made feeding bad research to the chamber (provided it reaches the proper conclusions of course) so I’m sure they’ll be fine.

    Regardless, from a research (and researcher) standpoint, the correction was a fun read: One of the tidier administrations of discipline I’ve seen; simultaneously relentless and entirely civil.

  15. Joe Friday says:

    romerjt,

    The family – with half of all children born to unmarried couples I just don’t see this playing out well for the kids

    According to the CDC, it was 22% in 2012.

    Nevertheless, the rate is much higher in France (for one example), and there does not seem to be any negative consequences.

    and liberals can’t talk about it b/c it’s politically incorrect to imply that single women can’t successfully raise children just as well as married couples.

    Two parents are only better than one in the same respect that three parents are better than two.

  16. rd says:

    Interesting piece on Motherboard linking food prices and the two major waves of riots and civil unrest around the world over the past 5 years: http://motherboard.vice.com/blog/we-are-now-one-year-and-counting-from-global-riots-complex-systems-theorists-say–2

    The irony of this is that everybody is S deficit spending causing hyper-inflation in the US but the reality is that it is having bigger impacts on inflation elsewhere as moneysloshes into commodities.

  17. MikeNY says:

    So the Fed is worried about QE boosting asset prices?

    That’s like a pusher worrying that his clients might be using drugs.

  18. sparta47 says:

    Hurrah for Fisher
    Return to the Free Market Sytem & remove artificial protection for big banks. They should not be subsidized & protected by Tax Payers.

    Remove protection for non bank deposit activities. “An institution’s other activities – securities trading, insurance operations and real estate, for example – should fall outside any backstop.” This would include the opaque & risky wordld of derivatives.

    I am not optimistic. For the last decade money has talked & the Tax Payer & Economy has paid. What do you think will happen.