My afternoon train reads:

Bill Gross: Be very afraid of the markets (The Buzz) but see Low Volatility Here to Stay? VIX Futures Say Yes (MarketBeat)
• Why the GDP Drop is No Big Deal (The Daily Beast)
• R-Word For U.S. Economy in 2013 is Rebound Not Recession (Bloomberg)
Australia: The New Saudi Arabia? (The Diplomat)
• To Fix the U.S. Economy, Fix Immigration (Bloomberg) see also Meeting America’s Growth Challenge (Project Syndicate)
• The perpetualization of debt (FT Alphaville)
• Republicans think sequestration is better fight (Politico) but see The Idiocy of Sequestration (Slate)
WTF?! Four US states considering laws that challenge teaching of evolution (theguardian)
• 14 Things We Learned from Facebook’s Earnings Call (The Fiscal Times) see also Steve Jobs biopic will be must-see for techies (MarketWatch)
• The Secret To Being Creative (bclund)

What are you reading?



Taxing Transport

Source: The Economist

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.

15 Responses to “10 Thursday PM Reads”

  1. mad97123 says:

    Michael Santoli on the increasingly urgent calls for a “great rotation”. Sure feels like the MSM is trying to herd sheep to their shearing appointment.

    “There are essentially two pools of about $1 trillion sitting in places where lots of people feel it doesn’t belong. So they are calling for it to move elsewhere.

    Yet the increasingly urgent calls for a “great rotation” from bonds into stocks, which would purportedly carry equity indexes much higher, misread the way investor preferences tend to shift, and give too much credit to retail buying and selling as a driver of market performance.

    If a shift starts to gather strength, it would likely be after some shakeout in the bond market – which might or might not be associated with choppiness in stocks as well. Basically, a “great rotation” now would require that public investors “stick the landing” by turning away from bonds at the perfect culmination of a 30-year bond bull market. That’s not exactly the way it usually goes.

    As for corporate cash, the apparent surplus of idle liquidity is not a new story, the cash is quite concentrated in a handful of lushly profitable companies and much of it is effectively offset by a boom in corporate debt issuance the past few years.”

    And Bill Gross says we’re approaching a time where “investable assets pose too much risk for too little return.” Wow, quite a statement.

  2. RW says:

    Another entry for the “those who forget history are doomed to repeat it” file:

    Grand Mal Economics

    The issue is not that governments and central banks cannot restore employment, or do not know how; it is that governments and central banks will not take expansionary policy steps on a large enough scale to restore full employment rapidly.

    …Keynes begged the policymakers of his time to ignore the “austere and puritanical souls” who argue for “what they politely call a ‘prolonged liquidation’ to put us right,” and professed that he could “not understand how universal bankruptcy can do any good or bring us nearer to prosperity.”

  3. Mike in Nola says:

    That Marketbeat article is funny. This statement sorta speaks for itself:

    “That after the VIX finished above 14 Wednesday for the first time in four weeks, snapping a 17-session run below that level — the longest such streak since April 2007.”

    Now what happened 6 months later?

    Gross is really only influential because he controls so much money and can move the market himself short term. I would not be too surprised if he was partially responsible for the recent sell offs in 10-30 year Treasuries. His powers of prognostication haven’t exactly been sterling. I remember the big bet against Treasuries a couple of year ago that he wound up eating.

  4. Ridge Runner says:

    Misreading the Muslim Brotherhood – Group think or Wishful Thinking? Maybe a bit of both:
    How did so many Western analysts get Egypt’s Islamist movement so wrong?

    Also been reading D.P. Goldman’s pushback against a prominent Group/Wishful Thinker:

    Dr. Cook refers specifically to my Jan. 22 essay, “Denial still is a river in Egypt,” in which I argue that Egypt’s economic collapse has made the largest Arab state ungovernable. He denounces as “a-historic revisionism” my “claim that economic collapse was the reason for the uprising.” Revisionism? I have been arguing since February 2011 that the global spike in food prices undermined Egypt, which imports half its food. [ numerous citations follow ]

  5. stonedwino says:

    Nice lineup here BR!

    Bill Gross pimping bonds; Steady as She goes; Drill, Baby drill Downunder; Debt Slaves; Cognitive Dissonacne Part Deux; You can’t fix stupid; Facebook still sucks; Cognitive & creative thinking? get the fuck outta here?

    Last, but certainly not least, not that 6 of the top seven countries on the list of highest effective tax rates on trasport fuel use are geographically wevy, wevy small…I will sign of with a bottle of Camaraderie Cellars 2007 Cabernet Sauvignon…some killer juice from the Wahluke Slope, really putting Washington State on the map. Cheers!

  6. Francisco Bandres de Abarca says:

    The conundrum of seeking real returns from here on out:

    Which prompts a question: If finding assets which offer the possibility of real returns is reduced to a fool’s errand due to currency devaluations pressing asset prices ever higher, what happens?

  7. ilsm says:

    The sequestration over 10 years is pitance $1.2T out of $22T, and wringing hands for the generals is suspect.


    “You can’t really buy 89 percent of an aircraft carrier or build 92 percent of a dam. Consequently, the aggregate level of disruption will probably be bigger than the percentage cuts suggest. On the military side, since troop pay and the ongoing war in Afghanistan are spared, the cuts in future weapons programs and other procurement will be very big.”

    No but if you cut the Navy Program Element for Naval aviation, you may decide to dock 1 of all the world’s 12 super sized carriers, which only the US Navy own! As if you would run a couple up of them up to Kim’s NK and blast away with super Hornets, and do some Hanoi raids, wee what that produced!

    And if you cut the AF program element for Combat Aviation or Air Cargo you buy fewer in a lot, and ground units who are not going anywhere againts anyone anyway! The Strategic bombing survey did not sell the Ar Force.

    The Army can live with less than 72 mechanized brigades to fly off and rotate through quagmires!

    A 5% cut to the pentagon’s 70% too large cabal.

  8. • The perpetualization of debt (FT Alphaville)


    Armaments, universal debt and planned obsolescence — those are the three pillars of Western prosperity. — Aldous Huxley

    as per usual, YOMP .. (your orbit may perturb)

  9. RW says:

    Celebrating Negative Growth

    Larry Kudlow demonstrates the Right-Wing and “Very Serious Person” echo chamber(s) incapacity for escaping the constraints of its priors and, eo ipso, its enduring inability to rise above the level of confirmation bias and performance art; i.e., a simulation of analysis with entertainment and ratings value but God help anyone who attempts to invest (or run a country) based on its conclusions.

  10. VennData says:

    Great! The GOP wants to kick the can for THREE MONTHS!

    These are the guys who are pro-business?!

    OK business, you have a three month budget. No go make money, LOL.

    The GOP is nuts, run by nuts …. and you’re voting for them.

  11. bear_in_mind says:

    “Steve Jobs biopic will be must-see for techies”

    I’d beg to differ.

    IMHO, real must-see techie viewing is “Triumph of the Nerds” which premiered on PBS in 1996 and can be found for purchase at PBS or Amazon. There’ s a very dated section of the PBS website with a few paltry details ( but it doesn’t begin to do the program justice.

  12. swag says:

    Tell me that the National Review’s defense of the sensible Nazis against the smears of Obama is satire so sophisticated as to be indiscernible.

  13. ConscienceofaConservative says:

    Bill Gross himself on the credit super-nova

  14. ilsm says:


    The national review readers would also take umbrage to contemporary remembrances about how 150 years ago Northern abolitionists were out to eliminate the inhumane and cruel institution of slavery.

    The NRO line would be how could very serious owners making 1% levels of income be “cruel to their property” which they had legal rights to do what they would anywhere the US held sway?

  15. AHodge says:

    Bill Gross Go outside of the U.S., he says. Buy currencies from countries “with less hyberbolic credit systems” including Australia, Brazil, Mexico or Canada.

    excellent advice. Or actually go with almost any country that doesnt have US and Europe ” hyberbolic credit systems”
    but he and el ehrian still wont call those two mutant behemoth bank and credit systems broken,
    and they were betting europe would get all bailed out last year