My morning reads:

• Market bears still waiting for pullback (CNNMoney) but see It’s not just stocks; everything is overvalued (MarketWatch)
• Welcome to Saudi America (FT Alphaville)
Fees of Fees don’t sound like a great deal for the investors:  2 & 20% + 1.5% yearly fee + (one time) 3% placement charge (NYT) see also The Things You See at a Las Vegas Hedge Fund Confab (NY Mag)
• Fidelity vs. Vanguard: Which is best? (MarketWatch)
• Foreclosure Filings in US Hit Six-Year Low (World Property Channel) see also Challenge to Dogma on Owning a Home (NYT)
• Paulson Bid to Resurrect Reputation Hurt by Gold Gone Bad (Bloomberg)
• Our Swiftly Melting Deficit, Or How the U.S. is Killing It (Daily Beast) see also Why Republicans Really Love Budget Deficits (The Fiscal Times)
• More money, more self-reported satisfaction, but not more happiness… (FT Alphaville)
• Turn Bad Stress Into Good (WSJ)
• Sexiest Women and Hottest Celebrities (Maxim)

What are you reading?


Yen’s Fall Trickles Through Japanese Economy
Yen timeline
Source: WSJ

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.

16 Responses to “10 Friday AM Reads”

  1. VennData says:

    WSJ Opinion page said to BUY GOLD! with a Rookie in Treasury

    Of course Gold’s down 25% since then.

    I guess every Treasury Secretary is a rookie at some point, But the remember, read the WSJ opinion page, as a reverse indicator extraordinaire.

  2. hue says:

    Chart of U.S. Commercial Bank Assets Interbank Loans. Financial system, you’ve come a long way, back to 1985 levels (Pepe DePew)

    1925 Review of Gatsby: Fitzgerald discloses in these people a meanness of spirit, carelessness and absence of loyalties (NYTimes)

    The Internet Kills More Jobs Than It Creates: Jaron Lanier (Yahell!) (Diane Rehm)

  3. RW says:

    Greenwald: U.S. oligarchs focused on military and surveillance state to put down unrest

    [John Rockefeller] used to drive down the street and throw coins to people, not because he cared about them but because he didn’t want people hating oligarchs. He wanted to placate them and pacify them, and there’s very little of that [today]. It’s surprising to me, not because you expect them to be moral, but because you expect them to be smart.

  4. rd says:

    Interesting change in restaurant/diner demographics:

    I suspect that high unemployment of the young as well as large student loan debt has something to do with suppressing their frequent eating out. High college costs and declining median disposable income is probably impacting the ability of the 35 to 55 crowd to eat out as well.

    However, the 65+ generation is the last one to have widespread pensions as well as decent Social Security benefits. The 55 to 65 cohort is probably seeing a cessation of college payments which does free up quite a bit of disposable income. I expect that we will be able to eat out more once the last of our kids is done with college.That will open up a large after-tax cash flow for paying down debt and doing more outings (we are already saving a lot in 401ks etc.).

  5. rd says:

    Regarding Fee of fees – 2 & 20% + 1.5% yearly fee + (one time) 3% placement charge

    It is pretty standard to tip restaurant wait staff about 17% of the cost of the meal. Why should your hedge fund manager get less than a waitess, especially considering you are not even paying them a minimum hourly wage?

    • bear_in_mind says:

      When was the last time you spent the equivalent of your annual maximum 401(k) contributions (i.e. $16,500 — or $23,000 @ age 50+) on dining out?

      Alternatively, should all entities subject to taxation, regardless of income or profit, pay the same nominal tax rate?

  6. willid3 says:

    hm. JPM maybe in big trouble in California. seems they are being sued for debt collection abuse for 100000 plus events at 2500 per event. robo signing, and more. destruction of doucments, ignoring bankruptcy etc.
    might even bankrupt a few executives and businesses

    • bear_in_mind says:

      Would love to see some real justice regarding these abuses, but I suspect the clock (vis-a-vis the statute of limitations) has run out for the majority of the victims. Surely creates some good press coverage for Ms. Harris, though, and she can pose as a populist for “taking on” the big banks, when in fact, these abuses have been moldering under her watch (both statewide and in San Francisco) since 2003. That’s right, she’s been an elected head of prosecution since 2003 and only in the last 18 months have we begun to see her latch-on to the issue, as she needs something to help propel national exposure if she’s going to be seen as a candidate with national aspirations.

  7. mrflash818 says:

    BR, might be of interest (might)

    “Open Source Advocate Invited to SEC Credit Ratings Roundtable”

    WASHINGTON, May 9, 2013 — WASHINGTON, May 9, 2013 /PRNewswire/ — Next Tuesday’s Securities and Exchange Commission Credit Ratings Roundtable will include open source ratings advocate, Marc Joffe. A former Senior Director at Moody’s Analytics, Joffe has been using open source technologies to evaluate sovereign and municipal bond issuers since last year.

  8. rd says:

    Here is an intersting discussion on the origins of the term “Colony collapse Disorder” for the problems that bees are having. The most interesting part of this is the discussion that the types of problems currently discussed have been documented back into the 1800s. THere is some discussion and speculation on on potential causes.

    • bear_in_mind says:

      Well, agree that it’s important to be open-minded, but this comes awfully close to pooh-poohing the issue and that really wouldn’t productive. We might actually be witnessing a biological ‘tipping point’ event and not realize it until these collapses become irreversible. And if we know anything from studying nature, it’s this: Nature Bats Last. So all of our theories, positions and hunches will mean very little if the critical form of plant pollination ceases to function.

  9. mrflash818 says:

    “Accidentally Released – and Incredibly Embarrassing – Documents Show How Goldman et al Engaged in ‘Naked Short Selling’ ”

    The lawsuit between Overstock and the banks concerned a phenomenon called naked short-selling, a kind of high-finance counterfeiting that, especially prior to the introduction of new regulations in 2008, short-sellers could use to artificially depress the value of the stocks they’ve bet against. The subject of naked short-selling is a) highly technical, and b) very controversial on Wall Street, with many pundits in the financial press for years treating the phenomenon as the stuff of myths and conspiracy theories.

    Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks’ attitudes are not just toward the “mythical” practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general.

  10. bear_in_mind says:

    Some cool new tech!

    UniKey-powered Kevo aims to make Apple’s iPhone the ultimate secure wireless house key

  11. bear_in_mind says:

    Big changes coming to AppleCare this fall: warranty subscriptions, in-store iOS device repairs
    Apple Insider

  12. VennData says:

    Why is it, people complain that ETF’s and HFT drive “their” stocks down “too much?”

    When having somebody drive stocks down so that you’re so sure are undervalued, isn’t that what you want?