My morning reads:

Warren ♥ Banks: Buffett Says Banks Cleared of Excess Risk Pose No Threat to U.S. (Bloomberg)
Not exactly: Five Brutal Years Teach Investors to Sit Tight (Businessweek)
• Doug Kass: 15 Surprises for 2013 (Real Money)
• New Target in Finger-Pointing Over Housing Bubble (DealBook)
• Button-Down Central Bank Bets It All (WSJ)
• Mediocrity Strikes Again (The Capital Spectator) see also The Arithmetic of Active Management (Stanford)
• The platinum coin idea is idiotic. That is the point. (Wonkblog)
• A Bold Dissenter at the Fed, Hoping His Doubts Are Wrong (NYT) see also Too-Big-To-Fail Banks Gamble With Bernanke Bucks (Huffington Post)
Bill Gates: The optimist’s timeline (live mint)
• America’s staggering defense budget, in charts (Wonkblog)

What are you reading?



The appreciating renminbi

Source: VOX

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 Thursday AM Reads”

  1. willid3 says:

    seems Germany is secretly planning austerity after the coming elections. all the while the politicians aren’t campaigning on it. they are just convinced that the bond vigilantes are just around the corner. never mind what the bond market is telling them now. or what the results of that have been in countries that they have pushed their blood letting on have been (disastrous on every occasion)

  2. DSS10 says:

    New Mortgage rules from The Consumer Financial Protection Bureau……. This should be interesting as to both the housing market and the mortgage securities market.

    From Business week:

    The release from The Consumer Financial Protection Bureau:

  3. willid3 says:

    the invisible hand from Adam Smith. is a misreading of what he actually said?

  4. VennData says:

    Rage Against the Coin

    “My god, we can’t dress the secretary up as a clown!”

  5. SELIG says:

    Can somebody try to tell me the difference between raising the debt ceiling and issuing a Trillion $ coin in order to sell more debt? I don’t see one. If you do please explain. The way I see it, the debt ceiling is an imaginary number that will eventually get raised as long as some Republicans get more of what they want. So there will be no different effect on the global economy between raising the debt ceiling in congress or putting a coin in a vault. Right? Well, unless the coin got lost, haha.


    BR: The coin is currency, not debt. Issuing it pays for what Congress has already spent (but not yet funded)

  6. James Cameron says:

    > Doug Kass: 15 Surprises for 2013

    Not wanting to appear snarky, but regarding the accuracy of Doug Kass’ “Surprise Lists”:

  7. RW says:

    Understanding risk aversion in financial markets

    We know that some assets on average offer you a higher return than others …But understanding exactly what’s behind this has proven elusive. One idea is that an asset’s risk compensation depends on the covariance between its return and aggregate consumption. Something that pays off big when times are good is not as attractive …compared to an asset that pays big when you really need the money. Although this is a compelling formulation from the perspective of many standard macroeconomic models, it has proven very difficult to reconcile with the observed data.

    The article on the plight of young people is spot on (articles about the challenges of starting a career in an unstable, under-employment environment that stay sharply on point while avoiding austerian moralizing are surprisingly rare). Thanks.

  8. formerlawyer says:

    Cue the conspiracy theorists…

    WTF? Unexplained Infant Mortality in the US.
    “As to what explains the high infant mortality rate, the researchers aren’t quite sure. They say it is not explained by ethnic diversity in the United States. While U.S. minorities do tend to have a higher infant mortality rate, non-Hispanic whites in the United States also have worse outcomes than those in peer nations.”

    Tax Reform infographics.

  9. willid3 says:

    is the fix the debt campaign really nothing more than corporate lobbyists working for their clients to keep their special breaks going?

  10. barry3f says:

    Put a 3 year old in a room with a crayon and he/she would be correct as often as Kass. Why waste bytes on him?

  11. thomas hudson says:

    handwritten letter from lennon to clapton trying to get him to join the plastic ono band going up for auction:

  12. thomas hudson says:

    regarding infant mortality, the problem with that chart is that it is assuming that all countries report infant mortality using the same method. they do not. from wikipedia:
    ‘The World Health Organization (WHO) defines a live birth as any born human being who demonstrates independent signs of life, including breathing, voluntary muscle movement, or heartbeat. Many countries, however, including certain European states and Japan, only count as live births cases where an infant breathes at birth, which makes their reported IMR numbers somewhat lower and raises their rates of perinatal mortality.’

    there are many other factors in the reporting, based on culture, privacy, etc. which makes this chart somewhat suspect.

  13. willid3 says:

    the myths of jobless recoveries

    we only just think they happen.

    or they really do but they are driven by slack demand, which may have several different source, one being the trade deficit (pre 1970s we produced more of our on goods, so jobs recovery after a recession was driven by increased demand), off shoring is another source of jobless recoveries, as US demand actually drives jobs in other countries, not in the US, which is basically what happens because of the trade deficit. not really convinced that US budget deficits are a really big cause of the problem, unless you want to count those driven by increased military adventures, that didnt also drive large increased domestic military equipment production.

    so basically is the lack of demand in the US that creates recessions. and even when demand starts to recover, less of the demand impacts job creation in the US as more of that demand is siphoned off in jobs in other countries?
    and why is many dont seem to get that demand is what drives a capitalistic society? they never seem to get thats basic capitalism?

  14. mathman says:

    What, nothing on Jack Lew?

  15. mathman says:

    okay, how about this:

    some great questions to ask during his confirmation:
    (on soc sec)
    The Social Security Trust Fund also faces a potential shortfall in a couple decades which could lead to a reduction in benefits. Please tell us which solution you prefer:

    1) Raising the payroll tax cap on high earners (the most popular option among voters across the political spectrum)
    2) Cutting benefits (the least popular across the political spectrum)
    3) A financial transaction tax

    Lastly, please tell us whether you think Social Security’s funding should be discussed in the context of deficit reduction, given that it’s forbidden by law from contributing to the deficit.

    (on medicare)
    The Treasury Secretary also serves as Board Chair and Managing Trustee for the Medicare Trust Fund. Please tell us which of the following solutions you intend to pursue and why:

    1) Shifting costs to America’s seniors by raising the eligibility age and cutting benefits
    2) Reducing health care costs, by addressing the factors which make US costs so much higher than those of other developed nations

    (on homeowners)
    How will you respond to reports that the HAMP program has benefited banks while often causing hardship to homeowners? How satisfied are you with the administration of funds under the $25 billion settlement over bank foreclosure fraud? Do you think that homeowners and third-party investors have been well-served by that program?

    (on Wall St fraud and mismanagement)
    Given the evidence uncovered by the Financial Crisis Inquiry Commission, do you stand by your statement that Wall Street deregulation, and its subsequent criminality and mismanagement, didn’t cause the financial crisis of 2008?

    Does it concern you that no Wall Street bankers have been indicted, despite the many billions that have been paid to settle charges of fraud?

    What are your thoughts about the implementation of the Dodd/Frank financial reform bill? What are your thoughts on the Volcker rule? What additional reforms do you believe are needed to keep us safe economically?

    Lastly: When is a bank “too big to fail”?

    (on money and power)
    The American people bailed out Wall Street, yet over the past four years Wall Street has prospered while the American people have struggled. Why do you think this is?

    Do you believe Wall Street has too much influence in Washington? If not, how do you explain the difference between Wall Street’s fortunes and Main Street’s since the crisis of 2008?

  16. VennData says:

    Biden Says Gun-Safety Consensus Is Emerging

    “…Vice President Joe Biden on Thursday said he plans to give President Barack Obama ideas to reduce gun violence by Tuesday and that a consensus is emerging to ban high-capacity weapons and require universal background checks…”


    P.S. And please send $25 to the NRA today. :)

  17. Greg0658 says:

    1> I read the coin story at Wonk – interesting spin going on in that arena
    2> BR I like the answer to Selig -ie: currency & debt @1116a
    3> over on a Facebook header “the FED is neither federal nor a reserve” – I bothered to respond with:
    “a means of currency is required in advanced society .. that said being a bank (bigger the better) sure has its privledges these days .. “no peacocks, jerks & whiners” LOL .. I really do think the mess went nuclear with corporate stocks tho – aka another legalized currency with even less real rules”

    back to point1> imo we have a massive inflation in the process (a bubble) .. that is desired by most people .. more specific > the bubble is the mechanism to allow humans to reproduce -ie: Birth Children
    – and so fabricate a way to feed those men & machines that is not consistant with the laws of supply and demand … the desired = a means to supply births with status quo commerce

    hense the bubble is reaching saturation point imo and MasterBR’s wash rinse repeat arena

    if there is a debate in this post – it is:
    is there a inflation bubble going on? whats create’g it? a Tcoin? really.

  18. couragesd says:

    if the true unemployed actually took their benefits…. “look out below”

    “Unemployment Benefits Not Sought by Jobless”
    Jan. 10, 2013 — Employment insurance is a vital safety net for the unemployed across North America, yet some take advantage of the system. Recent headlines have made much of a recent report from the U.S. Department of Labor that 11 per cent of all unemployment benefits were overpaid between 2009-11. But new research from Concordia University demonstrates that uncollected benefits represent a much larger dollar figure than overpayments. (rest of the article at link)