My afternoon train reads:

• U.S. Stocks Fall as Fed Minutes Show Debate Over Stimulus (Bloomberg) see also Fed Officials Feared Easy Money Could Rattle Markets (WSJ)
• Seth Klarman Parts the Curtains, Carefully (Institutional Investor’s Alpha)
• A Revolving Door in Washington That Gets Less Notice (DealBook)
• Former Powell chief of staff: Bush administration cooked the books on Iraq (The Raw Story)
WTF headline of the day: 5 dangers set to trip a 100-year bear market (MarketWatch)
• Single greatest driver of income inequality over 15 year period was runaway income from capital gains and dividends (WaPo)
• Economic Optimism vs. the Sequester (Rational Irrationality) see also GOP’s complaints about looming spending cuts ignore its role in creating them (McClatchy)
• U.S. Unveils New Strategy to Combat Hacking (WSJ)
• They’re drilling, baby, drilling – and gas prices still going up (McClatchy) see also Shale Gas Bubble Looms, Aided by Wall Street (DESMOGBLOG)
• The Recline and Fall of Western Civilization (Slate)

What are you reading?


Nasdaq surpasses its credit bubble highs of late 2007

Source: Chart of the Day

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.

10 Responses to “10 Wednesday PM Reads”

  1. loebd says:

    Apparently a show about firewood is the Seinfeld of Norway because it seeks to “try to get to the core of Norwegian firewood culture — because firewood is the foundation of our lives.” Strangely I have a yearning to go out into the woods and chop down a tree after reading this article.

  2. PeterR says:

    The Marketwatch Farrell link is for a wide-screen print-ready view.

    Here is the page view:

    Prechter has been wrong so many times, it is easy to ignore his calamitous mutterings, but with most major averages at or approaching a Triple Top going back to 2000, would you bet on the markets going up or down from here?

    As we have seen, sell-offs from overbought conditions can be fast and furious. Witness 2008 for instance.

    Then there is HAL to consider . . .

  3. RW says:

    MA’s Alternative Scenario: March 1 Sequestration

    A sequestration of federal spending, scheduled to take effect on March 1, is now less than two weeks away. Little progress has been made in negotiating a bargain that avoids or delays the automatic spending cuts implied by the sequestration.[1] Accordingly, we now put the odds of a sequestration at close to 50%, and rising.

    • Our baseline forecast, which shows GDP growth of 2.6% in 2013 and 3.3% in 2014, does not include the sequestration.
    • The sequestration would reduce our forecast of growth during 2013 by 0.6 percentage point (to 2.0%) but then, assuming investors expect the Federal Open Market Committee (FOMC) to delay raising the federal funds rate, boost growth by 0.1 percentage point (to 3.4%) in 2014.
    • By the end of 2014, the sequestration would cost roughly 700,000 jobs (including reductions in armed forces), pushing the civilian unemployment rate up ¼ percentage point, to 7.4%. The higher unemployment would linger for several years.

    NB: I have increased hedges: I believe the Republicans have convinced themselves this will hurt Obama more than them, never mind the economy, and it may take until the middle of March or even longer before they realize they miscalculated (again). Needless to say I could be wrong …however.

  4. ilsm says:


    Raising taxes is also appropriate.

    Sequestraion is $89B on an economy of ~13,500B.

    Half the sequestration is war welfare, with an abyssmal ‘multiplier’. Killing the failed F-35 would cut at least $16B this year.

    The other half is crony capitalism, also with an abyssmal multiplier.

    Keynesianism is only for the war profiteer and other government contractors.

    “The American Republic endured until the congress discovered that it could be owned by the rich using the public’s money.”

  5. ilsm says:


    Col Wilkerson, Sec State Colin Powell’s Chief of Staff has been a stand up guy, a high spot in Powell’s term at State!

    Drill baby drill….. The extra drilling is from the high price of crude!

    I was around in Aug 2011, “dracionian” sequestration is from Mr. Paul Ryan and his GOteaparty Randists who held the debt ceiling hostage to get here.

  6. S Brennan says:

    A wild, wild, wild story…put away those tin foil hats folks…this one is true!

  7. VennData says:

    Obama Rated at 3-Year High in Poll, Republicans at Bottom

    The GOP continues to think they can make people believe their nonsense.

    The GOP needs to wise up fast or your really rich guys actually ARE going to be paying the 70% tax rates Fox and the WSJ opinion pages claim you pay,

  8. S Brennan says:

    Another howl into the featureless dark…get my own blog..I hear ‘ya BR, but who would listen to my worthless yammerings?

  9. Smokefoot says:

    The WTF headline on a 100-year bear market is not about a bear market that lasts 100-years, but a one in a 100 year bear market, as in a 100-year flood.


    BR: Yes, that’s why:
    1. Its a WTF headline, not WTF article;
    2. we have had three 100 year floods since 2000!