My afternoon train reads:

• Markets Saved by the Kid From South Carolina, Again (MarketBeat)
• The 40 Highest-Earning Hedge Fund Managers And Traders (Forbes) see also David Tepper Tops 2012 Hedge Fund Earnings (Forbes)
Michael Mauboussin: Think Twice (Outlook Business)
• Lazy Portfolios at war with Wall Street casinos (MarketWatch) see also The (Really) High Price Of Active Management (The Capital Spectator)
• Why It’s Smart to Be Reckless on Wall Street (Scientific American)
• The Consequences of Sequestration (The Diplomat) see also Austerity Kills Government Jobs as Cuts to Budgets Loom (NYT)
• Gold Bugs Need to Replenish the Hive (MarketBeat)
• Apple Should Stay Prudent With Cash: Analyst (MarketBeat) see also Apple’s ‘Very Active’ Cash Talks Won’t Assuage Investors (Bloomberg)
• Deficit hawks’ ‘generational theft’ argument is a sham (Los Angeles Times)
• When Diet Meets Delicious (NYT)

What are you reading?


S&P500 PE Ratio

Source: Chart of the Day

Category: Blog Spotlight, 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.

14 Responses to “10 MidWeek PM Reads”

  1. Moss says:

    I wonder how many lawyers and bankers got paid for this scheme.

  2. rd says:

    The little note on the S&P 500 PE chart says that the PE ratio i now down to a level rarely seen since 1990.

    However, the PE levels since the mid 90s have generally been at levels that were never seen before 1995. So what is the rationale that the last 20 years have suddenly become “normal” for PE ratios? Other than the Greenspan-Bernanke Put where the central bank has specifically targeted maintaining stock market valuations high, what other reasons exist for the markets to be above long-term norms?

    In other words, once the Too Big to Fail firms don’t believe that Bernanke or his successor will guarantee their stock market profits any more, what else will buoy the markets? I understand the meme of living with the market you have instead of the market you want, but graphs like this don’t reassure me that the powder keg has been defused.

  3. ilsm says:

    Let austerity reign!

    @DIPLOMAT, ‘confidence faeries’ (military equipment apologists)

    Sequestration is not an issue for the ‘common defense’. DIPLOMAT should worry about the F-35 with an engine with cracking turbine blades. The single engine becomes a smoking hole if one of the blades fails, along with about 100 other types of failure. It has gained so much weight its air combat maneuvering is well behind a lot of airplanes, to say nothing of reduced range and acceleration.

    The ‘confidence faeries’ should worry about the $1,600B in late faulty 100 most costly weapons in the “pipeline”. Huge amounts of resources for things that do not perform would be an issue if there were any threats.

    Keeping the world sea lanes open is ‘confidence faerie’ pap not part of the “common defense”. Maintaining 12 super carriers, 150 nuclear subs, a score or more of Aegis star wars destroyers and 8 Marine amphib groups is a huge over kills. Keeping one less carrier in the Indian Ocean is no threat to my common defense.

    The military industrial complex preparing to fight WW II with things like the $1,400B F-35 joint strike fighter that is not passing the tests it can be kept flying to do is worth cutting into the half of the world’s military the US is paying for, mostly with borrowed money.

    No Austerity in Federal Employment:

    Uniformed military 2000: 1,426,000 2011: 1,583,000

    Non Postal Fed Employees: 2000 440,000 2011 618,000

    Admiral and generals are threatening to score their failed expensive weapons as ‘not combat ready’ because a few billion are cut!

  4. RW says:

    Why Should Taxpayers Give Big Banks $83 Billion a Year?

    The top five banks — JPMorgan, Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and Goldman Sachs Group Inc. – - account for $64 billion of the total subsidy, an amount roughly equal to their typical annual profits …[meaning they] would just about break even in the absence of corporate welfare. In large part, the profits they report are essentially transfers from taxpayers to their shareholders.

  5. Theravadin says:

    Being a baby boomer myself, I guess that it would be nice if that LA Times article on generational theft were right… But it isn’t. It would be nice if the trillion dollar deficits we are running were paying for infrastructure and economic gain… instead of a bloated military, bank bailouts and senseless wars… But they aren’t. An article like that, you’d think maybe the authors lived in disneyland, or something… oh right, maybe they do!

  6. S Brennan says:

    The Un-American themes the .01% keeps trotting out….all have one common thread:


    Every time I see someone pick-up on these traitorous tropes, I get angry..and then I feel a bit of pity for the weak minds that finds comfort in this orchestrated propaganda. But honestly, I just want to slap the faces of those who buy into the hatred of Americans. Those who have served, will probably remember their Drill’s first speech about getting along with other people…it’s some variation of “no matter what you were were raised to believe about being better than other people, it’s bullshit, we are all American’s and we have to work together if we are going to survive.” It’s a life altering speech when it’s followed up with 8-12 weeks of Basic Training.

    The LA Times does a good job dismembering [Wall Street's]/DC’s/[Corporate Media] attempt to sell self-hate to Americans. It may be howling into the wind, as being unpatriotic seems to be the fashion among our nation’s “bi-partisan” elite, however, it’s good to see somebody still un-wrapping the pre-packaged hate we are fed…with facts.,0,1359954.column

  7. GoBigRed says:

    I just finished reading After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead by Alan S Blinder. Excellen book. I am now reading The Leaderless Economy : Why the World Economic System Fell Apart and How to Fix It by Peter Temin and David Vines.

  8. ilsm says:


    Pentagon frets paltry few billion in sequester, while it wastes $1500B on the F-35, heavy, slow, hard to turn, low acceleration, reduced range, increased fuel and more aerial refueling. The $1500B is low ball and That is a low ball figure, and the readiness will be abyssmal at <55%.

  9. Theravadin says:

    Re: S Brennan

    That’s an interesting counterpoint to my post. I guess I don’t see the generational equity issue as being about hating anyone… in fact more about pulling together, rather than apart. I can understand how you’d feel angry if it feels like that is what’s being said, though. But it seems to me that trying to leave a nation in better shape, less indebted, is very patriotic.

    Oh, and I did Basic too. Been there.

  10. MayorQuimby says:

    Barry, that LA Times article re: generational theft was absolutely filled with hot air and avoided almost any relevant facts such as ‘per capita debt’, inflation-adjusted wages, cost of living, savings rates, job stability etc. America is in deep doody and saying things like “debt is spent on infrastructure that becomes part of the next generation’s wealth” sounds nice but ultimately means zippo. Facts. Data. Invicuts does a good job at at least making his case. When did journalists ever have it so *easy*?

    Anyways….anyone who thinks skyrocketing debts in the world’s most important economy are not important needs to seek professional help.


    BR: The thrust of the article is the focus on debt is misleading — growth is more important, if you throttle growth, debt goes higher, and increase growth, debt goes lower.

  11. ilsm says:


    The paltry $1,000B cut to pentagon welfare is over a dream plan for splurging $7800B for the 10 years based in the sequester passed in Aug 2011. $600B of that would be spilled into the Lockheed trough for just the F-35.

    You are correct. Those draconian military industry congress complex cutters who brought us the harrowing MICC downturns after Korea, Vietnam , and the collapse of the Red Army just reduced the waste as percent of GDP. Their take was growing, but slowing as a rate.

    When the sound biters on both sides of the aisle rate their success by growing the plunder, a reduction in the growth of the pillaging is a defeat.

    Measuring anything as reduced requires asking a few “whys”, the beltway crowd does not like critical thinking lifting their rock.

    The MICC needs more every year because it has become broken, cannot deliver anything, and needs the racket continued, militarist keynesianism is dangerous should a threat ever arise.

  12. rd says:

    Marijuana cannon used to deliver 30-lb marijuana packages over the Mexican border fence into the US:

    This is clearly inadequate for the intended purpose as it can only fire them about 500 yards. I fully expect that as part of our budget cutting efforts and the Ttoal War on Drugs, the ATF and US Army will sell surplus 155 mm howitzers to the drug cartels so that they can fire the packages 10 miles or so and completely evade capture and confiscation.

  13. S Brennan says:


    I wrote my piece without observing your comment.

    If your concern is truly not to leave a wasteland behind, the economics of the depression clearly shows the way….and it is not what you advocate.

    In the depression, older people were culled from the job market with SSI, this increased opportunities for the younger workers…and drove wages up which helped the economy as a whole.

    In the depression, we built up infrastructure that led to victory in WWII…and unparallelled prosperity in the postwar world. At interest rates approaching ZERO, it is stupid and lazy not to build up the infrastructure our grandparents built for us. With all that they did for us, is our total contribution to be tax cuts for the rich? What a pathetic policy.

    In the depression, we reigned in the financial institution that had wreaked havoc upon this nation for generations, we returned stability to business planning that allowed for long term growth.

    In the depression, through the above we had recovered fully by 1936, however, the agents of GREED insisted we cut spending on infrastructure. They said; the government should look at spending and not revenues, better to spend during good times and save bad times. It seemed counter-intuitive, as this policy had ALWAYS FAILED previously, but the GREEDSTERS said “this time it will be different”.

    As any literate person knows, the US promptly went back into depression, lifted only by the DEFICIT SPENDING for “Lend -Lease” which geared up our factories and was the proximate cause of our swift victory in WWII.

    Had FDR, not ignored voices such as yours and SPENT AS THE SITUATION CALLED FOR, we would have been at war for decade[s] with the strong possibility of being enslaved by the Fascists. Let us recall, those who opposed FDR’s spending in the 30′s were aligned with the Nazi’s, Prescott/Bush being the most famous. This “spend during good times and save bad times” is the same thing we are being told today and this time by the decedents of those who opposed FDR in our nation’s darkest hour.

    We know what works, we know what fails, when a man knowingly urges his nation to disaster he is called a traitor.