Good Sunday morning, some reads to finish up your weekend:

Jeremy Grantham:  Investing in a Low-Growth World (Barron’s)
• Ego and ambition lie behind Dell buyout (FT.com)
• Florida Is Swamped with Foreclosures – And Deals on Distressed Homes (TIME)
• NYTimes Rating Agencies Two-fer:
…..-In Actions, S.&P. Risked Andersen’s Fate (NYT)
…..-On the Waiting List at the Debt-Rating Club (NYT)
• What Good Do Money Management Firms Have to Offer? (PBS Newshour)
• Mary Jo White’s Past and the Future of the SEC (Bloomberg) see also Who Says Tim Geithner Isn’t Getting a Big Payoff From Wall Street Pals (Wall Street on Parade)
U.K. LESSON: AUSTERITY LEADS TO MORE DEBT (New Yorker)
• Renewable energy now cheaper than new fossil fuels in Australia (Bloomberg Brief) see also Marco Rubio: Another Senator Who Doubts Global Warming (Slate)
• Flickr Is Back, Letting Us Go Home Again (Wired)
• 5 Things You Didn’t Know About Miami Vice (Classic Driver)

What’s for Brunch ?

 

Deficit Shrinking At Fastest Pace Since WWII As GDP Sputters

Source: Investors.com

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. Moss says:

    I found this amusing although sad as Fox continues its misinformation clinic.

    http://www.slate.com/blogs/future_tense/2013/02/07/fox_news_expert_on_solar_energy_germany_gets_a_lot_more_sun_than_we_do_video.html

    Who can tell me why ‘conservatives’ hate renewable energy?

  2. Mike in Nola says:

    The MV fill Collins episode was one of my favorites. He had some acting talent.

    I think “In the Air Tonight” was initially featured in an episode guest starring G. Gordon Liddy who obviously enjoyed playing ex-spook “Captain Real Estate.” No doubt this was part of the image he wanted to project instead of that of a member of a bungling burglary team whose incompetence eventually led to the downfall of a president..

  3. ToNYC says:

    The secret of Michael Dell’s grand new fortune without apparent cause is a crime forgotten because it was performed expertly. The world is filled with unWanted Criminals who have leaped over the line and found many dark warriors in flight to keep them aloft.

  4. Chad says:

    @Moss

    Conservatives hate renewable energy because they fear any change, as they are scared.

  5. VennData says:

    Apple cool? Are you joking?

    Get closed off the the world, be my guest. You don’t see me becoming an expat in North Korea.

    “…The right to have root on your machine is the right to store things which operate on your behalf,” Tim Berners-Lee told the audience at a Linux conference in Australia last month. Without that right, the inventor of the internet contends, users are subject to agendas they can neither control or, in many cases, even be aware of. He acknowledges the need to devise better security protocols to make sure that users with such access do not inadvert[e]ntly instal[l] malicious code, but it is clear that he sees this as a smaller threat than that of the ubiquitous opacity. Linux is the language of Android, so clearly his remarks were a[d]dressed to Apple. Why [can not] root access be an expert setting for iOS? Only the geeks will use it anyway…”

    http://www.forbes.com/sites/anthonykosner/2013/02/10/what-7-million-jailbreaks-are-saying-is-apple-listening/

  6. CharlesII says:

    I humbly submit that Jeremy Grantham is full of manure.

    His basic argument seems to be that high growth countries (and companies) dilute their stock faster than they grow it. Their anticipation of growth outstrips their ability to grow, projections turn out to be overrated, and then there is a crash in stock price. From this, he concludes that low growth can mean low risk, which means greater returns.

    It’s an overgeneralization that’s impossible to really prove or disprove to anyone’s satisfaction. Some growth stocks do outperform value stocks. Growth countries may grow in fits and starts, but the inevitable volatility just creates entry points for someone who understands what volatility is.

    So Grantham could even be right in general (the figures aren’t shown, so it’s impossible to even reach an opinion) and still be completely wrong. I think it’s pretty obvious that he is wrong because of a factor outside of his analysis: low growth (assuming cet. par. productivity growth) either means low corporate profit growth (bad for investors) or a declining standard of living for labor (bad for long-term social stability). The US is at present a low-growth country with stagnant or declining wages. How long will that go on until there’s a social explosion?

    The bottom line is that in picking stocks, good management and products/services that people want are useful predictors of stock price. Value without good management or good product/services = value trap. Growth without good management or good products/services = bubble. Same goes at the country level.

  7. Arequipa01 says:

    Two posts on 4closurefraud caught my attention- basically chronicle the further deterioration of the rule of law in the US- more confirmation of the Rogue State thesis (Real Estate vector- see Kelo v. New London). I.E., the State can seizure anything you purport to possess.

    http://4closurefraud.org/2013/02/07/roman-pino-vs-the-bank-of-new-york-homeowners-lose-in-landmark-foreclosure-decision-attorneys-say/

    http://www.bankruptcylawnetwork.com/is-this-the-year-wall-street-completes-its-purchase-of-floridas-court-system/

    Also, BTW, 4th amendment has been abolished- http://www.wired.com/threatlevel/2013/02/electronics-border-seizures/

    Next up, Fifth Amendment. Final Stop- PreMagnaCartaVille- Bring out yer dead!

  8. hue says:

    kumbaya: four year fight over 4 inches of yard sign breaks legal grounds, bankrupts HOA http://wapo.st/X0hdFn town square put up for sale to pay $400K in legal fees

    astronaut, Barenaked Ladies find final musical frontier, an interstellar duet http://bit.ly/12hlBCu

  9. mad97123 says:

    Jeremy Grantham’s piece ties in nicely with Bill Gross’ Super Nova commentary.

    Per Grantham – “Courtesy of the above Fed policy, all global assets are once again becoming overpriced. Notably, U.S. stocks (ex “quality”) now sell at a negative seven-year imputed return on our numbers and most global growth stocks are close to zero expected return. As for fixed income – fugetaboutit! “

    Per Gross – “The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets”

    Now think about the Great Rotation meme that’s being push today. Imagine the risk-averse bond holders following Gross’s path of rotating into cash rather than overvalues stocks

    Rising interest rates would be the unseen catalyst that spooks the stock market (see Buffett’s 1999 speech). Stocks and bonds start falling together. The trading robots would not know what to think.

    So Instead of rotating from bonds to stocks, investors start to compete for all that “cash on the sidelines”. They quickly find there is very little cash when everyone wants some. The Minsky moment arrives as the Ponzi finance phase unravels, and there is a dash for cash.

    Gross’ countdown may get kicked off with all the Great Rotation talk as investor desert credit markets for cash rather than overvalued stocks.

  10. Joe Friday says:

    5 Things You Didn’t Know About Miami Vice

    I remember the shop that made the glass they put over the vette chassis to make the Daytona also made glass panels to convert a Datsun 240Z into a 250 GTO. I saw one at an event, and unless you got down on the grass and looked underneath, it even fooled the aficionados. You can’t even drive the real ones anymore as they now go for $30 – $40 million.

  11. Joe Friday says:

    U.K. LESSON: AUSTERITY LEADS TO MORE DEBT

    BLASPHEME !

    Now who ya gonna believe, the American RightWing or your lyin’ eyes ?

  12. petessake says:

    Moss, in addition Faux News lies recall the approximate north-south center of Germany is Frankfurt on the 50th parallel. The US northcentral, northwest border is on the 49th parallel. Capturing and using the sun’s energy through direct solar or indirectly through geothermal is a matter of attitude, not latitude.

    Arequipa01, the government (we the people) always had the authority to seize what individuals own – the largest restraint is to pay just compensation. The former restraint, for public use, was obliterated by the courts. Only the corporate biding Supreme Court would interpret that to include private companies – for investments or pretend increase in taxable valuation (the kelo excuse), pipelines, electrical lines, etc. A proper interpretation would not allow takings in the name of we the people for private profit, increasing private shareholder value. We should have no quarrel with government holding senior title to real estate – taking it for private purpose is wrong by any measure.

  13. VennData says:

    India’s Kumbh Mela festival holds most auspicious day

    “…The current event has been marred by a stampede at a train station which killed at least 10 people on Sunday…”

    Hurry! Run to Pray!!! KILL ANYONE THAT GETS IN YOUR WAY!!!!!!

    http://www.bbc.co.uk/news/world-asia-india-21395425

  14. catclub says:

    In the 2008 crisis there was some serious evidence of a cash crisis: the interbank loan rate went sky high.
    Is there any evidence that is happening yet? Is there some different indicator that would indicate a coming crisis?
    Isn’t the VIX volatility index way down? I know I am on the side of predicting that now and in the near future there is no crisis similar to the 2008 one, but besides general fears, are there indicators?

    Another is that during the 2008 crisis they NEARLY, but not quite, broke the buck on some money market funds, and then those funds were suddenly insured up to $250K and the issue faded away. Anything similar on the horizon now?

  15. VennData says:

    Why the GOP is and will continue to be the party of white people

    “… Many have noted Mitt Romney’s failure to collect a single vote in 91 precincts in New York City and 59 precincts in Philadelphia. More telling is his defeat in eleven more of the nation’s 15 largest cities. Not just Chicago and Columbus, but also Indianapolis, San Diego, Houston, even Dallas…”

    And Reagan’s racism…

    “…Rusher proposed a third party, suggesting as its tribune Ronald Reagan, who had a history of sympathy for Southern nullifiers. Early in his career, he had shared the stage with Faubus and other segregationists, and in 1980, he flew directly from the nominating convention to Philadelphia, Mississippi—where three civil rights workers had been slain in 1964. Reagan dismissed the sitting chairman of the U.S. Commission on Civil Rights, Arthur Flemming, who warned that the Reagan administration’s handling of school desegregation cases reflected the doctrine of “separate but equal.” There was a protest as well from state agencies. The chairmen of 33 of them signed a letter warning that Reagan had created a “dangerous deterioration in the Federal enforcement of civil rights…”

    http://www.newrepublic.com/article/112365/why-republicans-are-party-white-people

    Go GOP! Keep clogging up the works. Thanks for being wrong on everything.

  16. DSS10 says:

    From the unintentional humor department:

    “Cantor: GOP needs to help folks”

    “House Majority Leader Eric Cantor said on Sunday Republicans “need to be talking about helping folks” if the GOP is going to win national elections, a major thrust of his effort to rebrand the party following its poor showing in November.”

    Um, like, duh…..

    http://www.politico.com/blogs/politico-live/2013/02/cantor-gop-has-got-be-talking-about-helping-folks-156577.html

  17. Cooter says:

    I just find all of this banter amazing. Basically, the wealthy are saying that they have run out of ways to increase their power and wealth by shuffling money around. And, because of that, the world (well, at least their world) will come to an end.

    Well good! I know plenty of people more than willing and able to take the reins if the wealthy loose their intestinal fortitude for the real world.

    Maybe then the rest of us can get on with fixing the world’s problems. Now wouldn’t that be a boon for GDP?!

  18. Jim67545 says:

    Applying austerity to a weak economy is the same as the former practice of bleeding. Those advocating the practice, seeing the patient getting weaker, yet convinced of its benefits, often redoubled their efforts until the patient died. Puzzling blindness to cause and effect.

  19. Robert M says:

    Still to this day find it hard to believe the balck Ferrari was fake. Loved that car.
    Worse hard to believe Secret Agent Man only hit no3 on the charts in 1966