My morning reads:

• 5 Reasons to Like (But Not Love) Stocks (Barron’s)
• Bond crash dead ahead: tick, tick … boom! (MarketWatch)
• Finally, Economists Acknowledge That They’re Biased (Forbes )
• Lesson Learned After Financial Crisis: Nothing Much Has Changed (DealBook)
• Professor Monti and the bubble (VOX) see also A Cypriot Nobelist Is ‘Appalled’ by the Proposed Bailout Bank Tax (Businessweek)
• The real investment lesson of the Iraq war (MarketWatch)
• Why Voters Trust the GOP with Their Tax Dollars… (The Fiscal Times)
• Is Immigration Reform At The Tipping Point? (Talking Points Memo)
Ezra Klein: I supported the Iraq War, and I’m sorry.  (Bloomberg) see also Waste, fraud and abuse commonplace in Iraq reconstruction effort (The Center for Public Integrity)
• Belgian mathematician rewarded for shaping algebra (nature)

What are you reading?



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.

13 Responses to “10 MidWeek AM Reads”

  1. DeDude says:

    Now this house would be a great starting or ending point for the Topeka “Gay Pride Parade”.

  2. mathman says:

    Thanks for the great article on Deligne.

    Here’s one for you and your readers
    (3rd paragragh)

    I agree with David Rosenberg. The bond bubble and the growing stock bubble are tied together and will likely implode simultaneously when Bernanke successfully ignites his desired inflation or his efforts fail and we fall into a deeper recession. Federal Express reported absolutely horrific results this morning, with their profits plunging by 31%. Do the earnings of the biggest freight carrier in the world plunge when the economy is growing?

    We are clearly in a worldwide recession, despite the propaganda being spewed by the MSM. The bankers are coming for your cash. Bernanke is already absconding with 3% of it per year through his Fed created inflation. Stocks and bonds are priced for negative real returns over the next ten years. Cash under your matress or converted into gold and silver or guns and bullets is the best investment at this time.

    and contains an article by Paul Farrell, which concludes:

    Do the ticking math … tick … tick … tick … boom!

    Osterland relies on some solid numbers to make his point that the market’s turning has already begun and will spiral down and out of control: “The yield on the 10-year Treasury bond, just under 2%, is up more than 35% from the record low in July. Investors are almost certainly going to see negative real returns on their Treasury portfolios in the first quarter, a rare event that many feel has the potential to trigger a wider selloff in the market.”

    And adding to the selloff risk, we’re coming into federal tax season and a couple more debt ceiling cliffs: “With the Federal Reserve keeping short-term rates near zero and long-term rates near historic lows with its bond-buying program, there’s little room for further price appreciation. That means … interest rates have nowhere to go but up.”

    And unfortunately, he warns that “a rapid rise in interest rates would bludgeon many existing bond portfolios. Simple bond math holds that a 1-percentage-point rise in interest rates would result in a roughly 1% decline in prices for every year of a bond’s duration.” Yes, “bludgeon” your portfolio once rates start ratcheting up.

    InvestmentNews takes its responsibility to America’s 90,000 professional financial advisers seriously and in this “Special Report: Tick, Tick … Boom!” it’s painfully clear it sees enormous danger ahead for a millions of complacent investors who “have no idea what’s about to happen to them. … Tick … Tick … Boom!”

  3. rekesk says:

    You would wish more GOP members were like this:

    Leach, meanwhile, had a Zen outlook when asked if there were lessons to be learned from the war.

    “Wisdom is linear,” Leach said. “A smart person, we are told, learns from his or her mistakes. But a really smart person also learns from the mistakes of others. And a sage learns both from mistakes and the wise decisions of those who came before.”

  4. hue says:

    cathode ray toxic: old monitors piling up in ‘glass tsunami’

    please do not chillax: adjoinages & death of the american pun

  5. louiswi says:

    It should be obvious to all by now that Paul B Ferrell gets paid by the word as his opinion piece today could be reduced to a single sentence.

  6. Init4good says:

    RE: Why Voters Trust the GOP with Their Tax Dollars… (The Fiscal Times)

    From that article:
    Voters are seeing that the Republican pro-growth agenda works. A recent report from Manhattan Institute Fellow Joel Kotkin convincingly identifies the four future “growth corridors” of the country – they include states such as Montana, Texas, Nebraska, Florida, Arizona, Arkansas and Georgia that have attracted businesses with low taxes and light regulation. While many of these regions benefit from enviable energy resources and while not all are red states, they tend to embrace growth and private industry.

    WRONG, voters DO NOT SEE “the Republican pro-growth agenda works.” VOTERS figured out over the last 20 yrs that their agenda IS Growth at ANY cost – that in a nutshell is their problem. This includes lowering US wages and benefits, threatening job losses to areas where “Republican pro-growth agenda” flourishes like china, viet-nam, etc., fooling the public into phony “wars on terror,” grossly overpaid CEOs, undertaxed income and wealth, and a corporatocracy which destroys any concept of ethics. Voters have figured out that their agenda is not to work towards any solutions to modern day injustices, only to “manage” peoples ideas by carefully crafted wordspeak and to control the public’s responses to systemic changes to suit their own selfishness and lack of creativity in designing public solutions to address these things. The thing they will NEVER live down (as long as there are any educated boomers still alive) is their completely IRRESPONSIBLE SPENDING of life and treasure on wars for power, revenge and oil, instead of empowering peoples’ ingenuity and educating them to facilitate better solutions. They ignore and even attempt to destroy the majority of the peoples’ will. Their leaders head the party of control and anti-empowerment. Democrats and Independents have big issues, but they have been exposed as megalomaniacs on the grandest of scales.

  7. Theravadin says:

    Despite Mr. Ferrell’s incoherent piece, the logic of a bond price fall is hard to argue with: essentially, bond prices have nowhere to go but down: the bigger question is when. But the case for a parallel and linked stock price fall seems so far to be basically Chicken Littlism. I’m not saying that stock prices won’t fall, but there are a couple of key factors to consider:
    - the spread between market average P/E and returns on Treasuries. The spread is currently historically high. This certainly indicates uncertainty and fear in the market, but it looks like the uncertainty and fear has been priced in… maybe over priced in.
    - cash pulling back from bond markets… or even just failing to move into bond markets, given the history of inflows over the past few years… will go somewhere. Probably some of it will go into stocks, because of the spread.

    Could both stocks and bonds fall dramatically? Sure. But it would be great if the doomsayers actually made a coherent link between the two.

  8. AHodge says:

    Im watching the latest regulatory stuff on fannie and freddie.
    That is driving their stocks way up–from 26 cents to 97 cents for fannie.
    goddam. i sold all mine two weeks ago at 31c thinking the announcements were risk.
    Worst timed trade–ever. Good concept thrown away. ah well.

  9. Joe Friday says:

    In response to the influx of foreign money buying-up South Florida condos, there are currently plans in place to build ONE HUNDRED AND THREE condo towers in coastal South Florida.

    Nah, this isn’t gonna blow up.

  10. willid3 says:

    i guess this fits in with some

    since some can’t see gobermint doing any thing right. but then no private sector company would touch this either. so that will leave with praying. and hopeing it doesnt hit it us

  11. willid3 says:

    the source of the college debt bomb?

    i am sure some cant see where this would have any impact on students finances.
    and of course it wasnt the cause of the rising tuition rates, or the fees!

  12. willid3 says:

    to accountants and other employees

    following orders isnt a defense

  13. RW says:

    Putting Our Money Where Our Mouth Is (ht TPM)

    So that’s where Dylan Ratigan went. Good for him!