My early morning reads:

• Are High-Priced Managers Worth It? (WSJ)
• S&P Credibility Seen Eroded by Complicity in Soured Deals [What credibility?] (Bloomberg)
• Analysis: Supply of Homes Dwindling in U.S. (World Property Channel)
Volcker: Fed Shouldn’t Wait Too Long to Unwind Stimulus (WSJ)
• Investors’ appetite for Apple sours (Los Angeles Times) but see Apple’s Planned ‘iWatch’ Could Be More Profitable Than TV (Bloomberg)
• Are speculators really driving up gasoline prices? (MarketWatch)
• All Signs Point to Higgs, but Scientific Certainty Is a Waiting Game (NYT) see also Chasing the Higgs Boson (NYT)
• The Worst Possible Way to Cut Spending (Economix)
• My Life As A Professional Cannabis Baker (Buzzfeed) see also Silicon Valley Is High on Innovation. And Pot (Businessweek)
• Snakes in a Frame: Stunning Photographs of Slithering Beasts (Smithsonian)

What are you reading?


China’s Shanghai Breaks 50-Day

Source: Bespoke

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.

17 Responses to “10 Tuesday AM Reads”

  1. mathman says:

    Anonymous hacks Wall Street:

    Declaring “the guilty must pay,” Anonymous has released 4.6 gigabytes of data detailing the personal information of Wall Street CEOs and other high level Wall Street executives.

    Links to the data began appearing via Twitter on March 2. AnonymousIRC, a popular Twitter account associated with the international hacktivist collective known as Anonymous, tweeted the following:

    4.6GB .xml files on CEOs and Directors [Compressed to 520mb zip] #Anonymous #OWS #OpWallStreet #BofA #Bloomberg

    The leak is associated with Operation Wall Street, a new protest launched by Anonymous hacktivists against the US government, Wall Street and the financial services industry. The operation seeks justice for those “who have lost their homes and had their lives destroyed” by “the crimes of Goldman Sachs and other firms.”

  2. nofoulsontheplayground says:

    That Shanghai chart above shows a Head & Shoulders Top that targets around 2,080 on that index. The structure and progression suggests it will break down in earnest in 7-10 sessions.

    While US equities are moving up, commodities are moving sideways or down for the most part. Of particular interest are food commodities, which have been in a downtrend since late last summer. If the lower prices are passed along at the grocery store, this may help mitigate some of the effects of the payroll tax increase.

    In my local area I have been seeing prices grinding down somewhat in the form of special sales/promotions, bonus packs, and other methods manufacturers use to pass along savings they believe may not be lasting.

  3. MikeNY says:

    WAY cool snake pictures. Thanks for that. I’m fascinated by, and terrified of them.

    Wrt to Volcker on the Fed’s unwind: oh, my sides! Bubble Ben and Easy Janet think they can drive unemployment down to 6.50%, even if it takes a $10 trillion balance sheet to do it. Which it might.

  4. VennData says:

    The Real Outperformer? Bonds

    “…But bond fans can boast that their investments have easily outperformed equities in the five-plus years it took the Dow Jones Industrial Average to break even…”

    ROFL. Thanks Rupert Murdock. I wonder if the same cherry-dates would have been used for this salad if Michele Bachmann, Perry, or Santorum were Prez.

  5. beaufou says:

    On the price of gas. I stumbled on this article 2 days ago and felt a little less stupid, nevertheless, the Guardian has had articles in the past about price manipulation which I’ll have to re-read.

  6. nofoulsontheplayground says:

    Denis Oullet has a nice set of charts out today on his blog. The best is the bank chart showing Price/Book vs Return on Equity:

    His last note says:

    Given their apparent relative mis-pricing, their better management, balance sheet and ROEs, JPM and WFC seem to be the better safe buys at this time.

  7. S Brennan says:

    Wow, talk about fact* free reporting. Long story short, everybody is full of beans, here’s a mixture of straw men, unrelated facts and conjecture. Taking two data points and driving a straight line between the two is idiocy and that is what the author does to “disprove” market manipulation. Market positions are more complicated than one trade.

    As for price manipulation the author dismisses as tin foil [sans any relevant facts], perhaps our clueless author could take few minutes to read up on John D. Rockefeller, whose whole business plan was market manipulation. sheesh.

  8. formerlawyer says:

    Another confirmation – called eating your seed corn in my area.

  9. beaufou says:

    S Brennan
    That was my feeling at first, we are always told about sophistication and complexity but it becomes perfectly clear and simple in such a case. I have tried to research manipulation but it all reads like ancient runes to me.

  10. mad97123 says:

    Markets set for ‘watershed moment’ when investors frontrun Fed exit: SocGen

    In conclusion, we anticipate that when the 10-year U.S. Treasury yield starts to move up, there will be significant downward pressure on the S&P 500. Even though it is extremely difficult to predict the equity market months into the future and the 10-year yield may not necessary shift up in just one jump, our analysis does indicate that the equity market is likely to face some headwind as the 10-year Treasury yield is rising.

  11. Joe Friday says:

    Volcker: Fed Shouldn’t Wait Too Long to Unwind Stimulus

    Sure, with about 30 million unemployed/underemployed, real incomes going backwards, and the loss of about ten trillion in housing values, by all means NOW is the time to take away that overly-generous proverbial “punch bowl” before the damn economy overheats !

    Why can’t we seem to learn anything from previous depressions ?

  12. spooz says:

    The Marketwatch “Are speculators really driving up gasoline prices? Commentary: Why the Great Oil Conspiracy doesn’t quite add up” demonstrates to me why comments are an important part of blog posts. It would have been nice to see responses from “differently” informed readers, but instead we get what amounts to propaganda, imo.

    I see nothing in the piece about banks and other assorted Too Big’s ability to manipulate markets with impunity. The UK’s Ofgem found some LIBOR like manipulation in oil a few months back, but I’m sure if there is anything like that going on in the US, where our regulators have such a clear handle on price manipulation, and nobody “intends” to commit fraud.

    ZH likes to feature stories on market manipulation, here is a recent one that discusses how flashing large fake orders can give you an “edge”:

  13. WallaWalla says:

    Here’s the EIA’s take on the price increases this year:

    ” 1)Refinery outages. There have been multiple refinery outages, both planned and unplanned, that reduced U.S. capacity to manufacture gasoline.
    2)Global demand for petroleum products. Year-over-year global product demand is up, and further rises are expected. That rise in demand affects domestic refinery utilization rates, maintenance needs, and product balances.
    3)Prior low crack spreads. Throughout much of November and December 2012, gasoline crack spreads were very low, and in some cases negative (a barrel of gasoline was worth less than a barrel of Brent crude oil).”
    Why have gasoline prices risen since the start of the year? Feb. 26, 2013

  14. river says:

    RE: Market Manipulation and Gas Prices (An honest question coming from somebody who doesn’t know anything about markets):

    I am always confused by the idea that for every buyer there is a seller. Gas prices went from something like $1.40 in 2001 to $4.10 in 2008. And even more blatant was the rise in the price of a barrel of oil from under 50 dollars a barrel in January 2007 to over $140 per barrel in July 2008. Whoever was betting that oil was going to go down for this year and a half must have lost a lot of money, no?

  15. beaufou says:

    “we are always told about sophistication and complexity but it becomes perfectly clear and simple in such a case”
    I was being sarcastic by the way.

  16. Joe Friday says:

    In the Summer of 2000 there was a very sharp spike in gasoline prices. The oil companies and refiners/distributors attempted to explain away their obvious price-gouging with excuses like their now infamous “shortages of reformulated gasoline” and “refineries closed down for maintenance”.

    The Clinton administration ordered an independent investigation. A year-long investigation by the Federal Trade Commission concluded that the spike in gasoline prices was caused by refiners, who had intentionally withheld gasoline from the market to maximize profits (the Chimpy Bush administration originally refused to release the results of the investigation, deeming the market manipulation and price-gouging “not illegal”, but a lawsuit brought about the subsequent release of the report).

    The results of that market manipulation and price-gouging ?

    * Exxon Mobil’s operating income in the last quarter of 2000 was up 89%, BP Amoco’s operating income rose nearly 93% and Texaco’s operating income increased 127%.

    * Refiners also cleaned up: Diamond Shamrock saw earnings increase 310% and Sunoco saw earnings increase by 743%.

    I’ve yet to be convinced, by any actual evidence, that the gasoline business in this country is anything other than a racket.

  17. hue says:

    snake is a plane: tree snake takes flight