My afternoon train reading:

• Boom or Bubble? (The New Yorker) but see Is This the Best Time for Investors? Don’t Bet On It. (WSJ)
• How Benjamin Graham Revolutionized Shareholder Activism (Echoes)
• Dear NYSE: Canceling Trades Destroys The Integrity of The Market (Kid Dynamite’s World)
• Telling the Truth on Fees, Warts and All (NYT) see also Making your financial adviser measure up (MarketWatch)
• Gross to Buffett Omens Disregarded as Sales Soar (Bloomberg)
• What’s Holding Back Hiring? (Real Time Economics)
• Wall Street Deregulation Advances Despite Warnings Vote Could ‘Haunt’ Congress (HuffPo)
How much? Samsung swipes 95% of Android profits (Digital Trends)
• Tesla’s fight with America’s car dealers (CNN Money)
• 12 reasons X-Prize billionaires are cheapskates (MarketWatch)

What are you reading?


Where International Migration Passes Natural Population Increase (Births ‐Deaths): 2012 to 2060
Source: Census

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 Monday PM Reads”

  1. TheRedBeardedWonder says:


    This is nothing new, as we’ve known for quite some time about the exploding debt level that most students now face.
    Even in the face of declining earnings, and persistently high unemployment, students continue to pile on the debt.

    The resounding opinion is that this rising debt is creating a drag on the economy as new graduates cope with high unemployment, low wages, taking jobs below their skill level, and heavy competition for well paying jobs. This creates a delaying effect on the major milestones of life; first time home buying, auto purchases, and delayed childbirth.
    What I haven’t seen is much literature on the secondary effects. Are the diminished job prospects of recent actually further depressing their wages? That is, to say, that employers know that the job market is weak and can afford to pay employees less because they could easily hire someone else? I remember seeing something about sticky wages on Krugmans’s blog, but I can’t find it and thought it mostly pertained to top jobs like law firms and banks at any rate. Furthermore, does this immense debt relative yearly earnings restrict job mobility that would have otherwise occurred?
    On a longer term, if excessive levels of debt have a negative impact on the savings growth of this upcoming generation, what will the market look like in 20 years? Who will be the counter-party trades in your retirement? Sure pension funds are huge, but that system is outdated for the majority of Americans. I can’t tell you anyone that I’ve run into that has a pension, other than public sector employees, that is young or near my age. Will it be the 1% trading among themselves?

    Again, where will the money that will be needed to buy our equities come from?

  2. willid3 says:

    going from a constitutional nation state to a ‘market state’?

    hm. can see the next evolution will be the ambulances. oh wait that already has happened. maybe the really big next evolution if the fire and police departments?

  3. Petey Wheatstraw says:

    “Wall Street Deregulation Advances Despite Warnings Vote Could ‘Haunt’ Congress”

    Un. F’ing. Believable.

  4. James Cameron says:

    I’ll have to ask my accountant how I can achieve this nirvana . . .

    ” . . . the findings about Apple were remarkable both for the enormous amount of money involved – tens of billions of dollars – and the audaciousness of the company’s assertion that its subsidiaries are beyond the reach of any taxing authority because they are ‘stateless.’”

    Apple Avoided Billions in Taxes, Congressional Panel Says

  5. slowkarma says:

    Here’s something that’s kinda got to make you laugh.

    A research group out of Oxford University has found that taking a B-vitamin cocktail (mostly B12) can have a dramatic effect in slowing the progression of alzheimers and other dementia at the cost of 20 cents per day, more-or-less. The senior researchers point out that if you could delay onset by 5 years, half the dementia victims would die of something else before becoming helpless with dementia. There are the usual bunch of disclaimers (test group too small, only affects certain kinds of dementia as far as we know, etc.) The senior scientist wants to do a very large study, but that would cost $9 million, and the drug companies won’t sponsor it because there’s no money to be made on common vitamins that cost 20 cents a day, and the “climate is wrong” for government sponsorship. It’d be hilarious if we wind up spending tens of billions of dollars warehousing demented patients for the lack of $9 million to pay for the research…

    Wouldn’t it?

    (I’m starting B12 tonight.)

  6. willid3 says:

    so we have been reverting back to the economies of the early 1900s and before?

  7. scecman says:

    Hey BR, where is the link for the details on that Census chart? That is super interesting and need to find out what they mean by High, Med and Low series. Is that by income?

  8. hue says:

    Eight Years Later, Google Reinvents Maps For A Data Rich Web (GigaOm) Google, NASA Quantum Computing Project Could Bring Stronger Machine Learning To The Masses (GigaOm)

  9. RW says:

    The Cat in the Tree and Further Observations: Rethinking Macroeconomic Policy

    …We should have led the public to understand that we should measure success not by the level of the current unemployment rate, but by a benchmark that takes into account the financial vulnerability that had been set in the previous boom. We economists have not done a good job of explaining that our macro-stability policies have been effective.

    …we economists did very badly in predicting the crisis. But the economic policies post-crisis have been close to what a good sensible economist-doctor would have ordered.

    Where Are The Deficit Celebrations?

    …where are the celebrations now that the debt issue looks, if not solved, at least greatly mitigated? …

    Jamelle Bouie gets at a large part of it by noting what was obvious all along: for many deficit scolds, it was never really about the debt, it was about using deficits as a way to attack the social safety net. …

    …[but] think about the personal career incentives of the professional deficit scolds. …you’re an employee of one of the many Pete Peterson front groups; and now, all of a sudden, the deficit is receding, and you had nothing to do with it. It’s a disaster!

  10. DeDude says:

    Krugman points out that it never really was about deficits; it was about using the deficits to further a specific political agenda and narrative.

  11. Bob is still unemployed   says:

    “…What has become of our markets? Nanex, the market analysis firm, has animated a half second of trading activity in Johnson & Johnson stock. The animation is both intoxicating and mindblowing, not only because of the sheer quantity of trades, each of which is made by computer algorithms (i.e. without human intervention) in such a miniscule timespan, but also because of the tremendous scope that high-frequency trading creates for what Nanex calls “abusive behaviour” — including arbitrage and market manipulation — and systemic risk….”

    The Beauty And Insanity of HFT

    “…The video [embedded in the article] illustrates an actual half second of trading in J&J stock from May 2nd, 2013, slowed down so it takes five minutes to watch. In the video each box represents a stock exchange….”

  12. Mike in Nola says:

    Some of the dead in the tornado were kids at a school. I read an account from one teacher (don’t know if it was that school) were sheltering in hallways and under desks. WTF, no shelter in a school in tornado alley?

  13. Mike in Nola says:

    China’s trade surplus is only about 1/10 of the official figure:

  14. Arequipa01 says:

    About 3-D printing:

    “In each engine, 19 nozzles will shoot fuel into a combustion chamber, where it mixes with compressed air. Because the fuel must be distributed precisely, the interior of a nozzle is very sophisticated: Elaborate chambers and passageways help curtail emissions, control nitrous-oxide levels and prevent temperature surges. Previously, making each nozzle required welding 20 disparate pieces together. Now, GE is employing 3-D printing to build each nozzle as a single piece, using laser sintering on a metal alloy called cobalt chromium.”

    BTW, not pioneered by corporations (like just about everything cool and innovative).

  15. TerryC says:

    @ RedBeardedWonder-
    Thought I would address the myth of crushing student loans. The NY Fed report from February breaks down student loan balances. 39.9% owe less than $10,000. 29.8% owe $10-$25,000, and 17.7% owe $25-$50,000. This means that 87.4% owe less than $50,000-the price of a new loaded pickup truck, or a pretty good loaded new car. I’m pretty sure my college education was worth the price of a pickup truck to me, so why is everyone complaining so much? Only 3.7% owe more than $100,000, and I’m sure many of those are for professional school, such as medical, dental, law, veterinary, etc. Many of the outstanding loans are also probably being paid by parents, and I’m sure many students owe large amounts for commercial schools of dubious value.

    I’m sick and tired of college students whining about how expensive it is to spend 6 years partying to get a BA in basket weaving from Runofthemill State U, when the taxpayers of that state should be shouldering all of their burden, even if they have never attended a state university, or sent a child to one.

    If all the whiners don’t think a college education is worth the money, they should do a simple cost-benefit analysis of the value of an education, and decide if their resources would best be allocated to something else.