My morning reads to start your workday:

Size Matters: The Source of the Small-Cap Premium (Above the Market)
• Fed Banker Backs Dialing Down Easy Money (WSJ)
• Cyprus: The Unique Template in Nine Theses (Marc to Market) see also The United States is not Greece, the USA is Cyprus (Guardian)
• BRICS Nations Plan New Bank to Bypass World Bank, IMF (Bloomberg)
• The Management-free Organization (Dilbert)
• McDonald’s Has a Millennial Problem (Advertising Age)
• The 1% aren’t like the rest of us (Los Angeles Times)
• Did the Iraq War Cause the Great Recession? (The Monkey Cage)
WTF? Makers of TurboTax Fought Free, Simple Tax Filing (ProPublica)
• What You Didn’t Post, Facebook May Still Know (NYT)

What are you reading?


The Earlier Your Economy Abandoned the Gold Standard the Better

Source: Econbrowswer

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.

19 Responses to “10 Tuesday AM Reads”

  1. hue says:

    Colorado pot growers gear up for green rush

    today’s ganja is too strong, and that’s bad for business

    mary and jane, the single best investment idea for the decade

  2. RW says:

    A lot of very smart folks have gotten the interest rate picture wrong for a very long time now (paging PIMCO) but it’s not really flawed logic so much as flawed priors: The assumptions accepted as true or even obvious that just ain’t so.

    The Unnatural Rate Hypothesis

    …the notion that rates are low only because the Fed is holding them down by ‘gobbling’ up debt is clearly refuted by international evidence, clearly refuted by the behavior of rates over time, and logically flawed. All of that makes it perfectly suited to become part of the conventional wisdom, so thoroughly accepted that it is mentioned only in passing.

  3. b.remson says:

    Digging the new web design. One thought though, move the QOTD above the ad on the right hand side so you don’t have to scroll down to see it. It’s the first thing I read in the mornings before your AM reads…small thing and just a thought.

  4. Mike in Nola says:

    RW: Krugmann is finally sorta pointing out what I’ve said here a few times. Rates go down when the economy tanks. No need for QE to do that. One thing he didn’t say and may not realize since his chart doesn’t look at is that that rates were failing before the announcement of QE3 and rose after the announcement. While the goldbugs say it’s because of currency debasement, it’s more likely that all the traders know the Fed will be giving away money to pump stocks so the shift is from risk off to risk on. They sell bonds and buy stocks.

    The alleged rationale behind QE is really a deception: it’s not to hold rates down, they would go down anyway; it’s to pump asset prices by injecting money into markets.

  5. Mike in Nola says:

    Have found that I can’t even listen to Bloomberg any more. Sounds more and more like CNBC. There was just some idiot on saying he couldn’t understand why consumer confidence went down when house prices are up. He said he was happy and why shouldn’t anyone else be, maybe because everyone else doesn’t get paid oodles of money to do nothing useful but produce inaccurate forecasts ad blather on the radio.

    He doesn’t seem to get that prices are only going up because of investor money and inventory manipulation, not demand from real people. But then, he doesn’t seem to be a real person.

  6. rd says:

    Since the world appears to be resembling the depiction in “Men in Black” more and more (National Enquirer was the only news organization that got hte presence of aliens among us correct), I decided to go to the financial version of National Enquirer, Zero Hedge.

    They have a very interesting little story posted about the avenues in London and Russia by which the Russians have been pulling their money out of Cyprus banks over the past week while the actual Cypriots are limited to daily withdrawals of 100 euros:

    It will be fascinating to see if the cupboards are actually bare when the Cyprus banks re-open on Thursday.The world has been assuming that the Russian oligarchs will take the brunt of the hit on the “tax” but it is possible that some pigs were more equal than others and the actual Cypriots will be left holding the bag. It would be very interesting to see how the Eurozone would handle that, especially as the local populace realize that they are really just financial Soylent Green for the 1%.

  7. investmentbanker says:

    The “Makers of TurboTax Fought Free, Simple Tax Filing” story is massively troubling.

    What is more troubling, however, is how few of us even knew about it.

  8. Bob A says:

    The US Budget Deficit Could Be Shrinking A Lot Faster Than Expected

  9. willid3 says:

    why dont the politicians really care about workers? seems sort of counter productive, in that they are also the biggest source of profits and sales for companies (at least one party used to represent them. but I sort of wonder if in reality they support the 1% instead. but then who are the executives but the 1%? hm maybe they still do). and the other party (that was suppose to support workers) seems to be so scared of the future that they must kill the present. even while not saying that

  10. couragesd says:

    Women Make Better Decisions Than Men, Study Suggests

    ‘Networked Minds’ Require Fundamentally New Kind of Economics

  11. rd says:

    Simplified tax filing would be great! However, it wouldn’t help our situation.

    Every year, one of our kids going to college ends up with the most complex tax form in our family even though their income never exceeds $6,000. This year’s complex tax form is our son going to university in Canada. Since he has a job on campus, he has about $2,500 in Canadian income which means that taxes need to be filed on paper instead of e-filing. Then there is the whole tuition tax credit thing that requires additional forms. So we get to send two bundles off by USPS to the feds and state for that tax return.

    A few year’s ago, a $2,000 fellowship for another student ended up requiring self-employed Schedule C forms etc. with payment of the employer and employee FICA taxes.

    Meanwhile our much larger income was relatively easy to deal with and file through e-filing using TaxCut.

  12. theexpertisin says:

    So, the BRICs are going to fund an alternative to the IMF. Good.

    I bet the Chinese and Russkies will find creative strategies to make borrowers repay their loans.

  13. Robert M says:

    Just devastating. The arguments for making the financial institutions pay for their damage has come home. the Germans may be ideologues about it but they are fundamentally correct; Without the rule of law to protect the populace the cost of social unrest from lack of it far outweighs the damages to the financial institutions. They would be advised to consider this when they lack at options for how to pay back borrowed government money, i.e. Spain and Italy

  14. S Brennan says:

    It’s hard to believe that things are this bad:

    Income Growth [inflation adjusted] For Bottom 90 Percent Of Americans Averaged Just $59 Over 4 Decades:

    But it would explain the disconnect between what BR says will happen to the market and what most believe. BR’s made the bucks being right, but it’s still hard to believe that things will get better under this relentless onslaught on the lower 90%.

  15. rd says:

    Interesting story here about Wal-Mats struggle to keep shelves full and check-out lines short:

    Are we nearing the end-game for continued cost-cutting increasing the earnings of companies?

  16. bear_in_mind says:

    @Barry: The RPSeawright article was exceptional (IMHO) — thanks for sharing! Also appreciated the FB article, moving me ever closer to deleting my profile.

    @Mike in Nola: I totally agree regarding Bloomberg. I use Downcast to manage podcasts and increasingly I skip to the segment intro from :30 to 1:30, then move on in search of a *conversation.* I’m about to banish all Tom Keene contend. I swear, if I hear him mutter “We’re gonna rip-up the script” one more time…

    @S Brennan: It’s hard to believe, but you don’t have to dig too hard to locate plenty of similar findings. And David Kay Johnston seems to be pretty solid with his research and stats. Below are some links you might find of interest. Also, you probably saw the “Wealth Inequality in America” video making the rounds a few weeks ago, but in case you missed it:

    Wealth Inequality in America

    UC Berkeley Econometrics Laboratory: Main

    UC Berkeley Econometrics Laboratory: Links

    University of Michigan: Institute for Social Research

  17. S Brennan says:

    REF: [The Management-free Organization], let me preference my remarks by saying I read Dilbert from the beginning and I’m big fan of Scott Adam, I just think he is not looking at the big picture.

    Did it ever occur to Scott Adams that if;

    “When employers were limited to hiring people who lived nearby…company[s] would necessarily absorb a lot of losers….now entrepreneurs can hire the best people from anywhere in the world”

    had been true when he was starting out, that he, a less than stellar employee by his own admission, would not be in his current position to render such a judgment today? Honestly Scott, you kicked around for 15 years at numerous jobs that you sucked at, before you found yourself. Now I am glad you found yourself and that you are now the “perfect” employee, but neither your life, or society would be sustainable by the rules you now promulgate. I worked in the valley for a decade, one of the most annoying things I encountered was people who, after receiving a break, decided to pull the ladder up behind them. Given your life story, of having to take jobs that didn’t suit you, don’t you think showing a little mercy towards people like yourself [but younger] might be in order?