My Sunday plane reading:

• CNBC’s Ratings Decline is Bullish News for Investors (USNews)
Hilsenrath: Fed Maps Exit From Stimulus (WSJ)
• Searching for Signs of a Market Top (Barron’s) see also The News Stock Market Bulls Don’t Want to Hear (Motley Fool)
I’m sure this ends well: Meet Dylan, the day trader (Washington Post)
• Robert Skidelsky vs. Niall Ferguson: John Maynard Keynes Is Not Ke$ha (Delong)
• California Homeowner Bill of Rights blocks BofA foreclosure (Housingwire)
• Tear down this icon: Why the GOP has to get over Ronald Reagan (Washington Post) see also Who Is The Smallest Government Spender Since Eisenhower? Would You Believe It’s Barack Obama? (Forbes)
• Return of the Borg: How Twitter Rebuilt Google’s Secret Weapon (Wired)
• Fiat 500e Review: The Bosses Don’t Love This Hybrid Electric, but You Will (WSJ)
• Special Delivery: The Postal Service Story (npr)

Whats for brunch?

 

Investors Rediscovering Margin Debt

Chart
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.

12 Responses to “10 Sunday Reads”

  1. Willy2 says:

    1. Hilsenrath is the mouthpiece of the FED.
    2. The FED has painted itself into a corner and the ultimate outcome it a destruction of the US T-bond market. And when – (NOT IF) – when the T-bond market breaks apart then that’s the ULTIMATE deflation (NOT inflation).

    • The Fed can always hold all of this paper until they hit their maturity dates — Most of the duration is well under 10 years . . .

      • howardoark says:

        Doesn’t that imply the national debt would have to shrink?

      • No, the Fed’s job isn’t to fund the national debt. There are other buyers

      • socaljoe says:

        Of course, there will be other buyers… the question is at what interest rates, especially if inflation expectations become elevated.

        The FED’s job may not be to fund the national debt, but that is exactly what it is doing. It is also making the cost of funding that debt artificially low, for the time being, by manipulating bond rates, and by doing so it is facilitating deficit spending.

      • Willy2 says:

        1. Yes, the majority of monetized US T-bonds has a duration of under 10 years.
        2. The real danger is that about 1/3 of all T-bonds issued with a duration of over 20 years have been monetized by the FED. (Remember “Operation Twist” ???) So, WHEN the 30 year bond “goes down the drain” (within say 6, 12 18 or 24 months) then the US T-bond market and the FED is “toast”. Then the FED also must write off all that MBS garbage they’re holding.

  2. Bill in SF says:

    Just got around to reading Josh Brown’s blog on Hilsenrath v. Bernanke. If you haven’t already seen it, it’s certainly worth checking out.

    http://www.thereformedbroker.com/2013/05/11/the-end-is-where-we-start-from/

    He distills the issues down to nine points that are the key to going forward.
    But the last two paragraphs in the 9th and final point provide the best example of financial porn written to date. Just 9 great points, but I would dub the piece; “Fifty Shades of Gravy”

    • call me sally says:

      from the Josh Brown post:

      “The bottom line is that the current zero interest rate policy (ZIRP) and the various quantitative easings will be dismantled and undone as slowly and deliberately as they were put on.

      does that also equate to a slow and deliberate fall in the markets as the Fed retraces its steps? If the markets are forward looking- won’t they react prior to the actual policy is implemented?

      it’s also interesting that in the same article, it indicates that the recession of 1937 was that easing was stopped “too soon”.. .I guess excellent 20/20 hindsight at play- as if no market correction should be expected if the exit is done at just the “right” time- which in hindsight could never be the right time as the markets will likely correct themselves (price discovery) and a recession possible (god forbid!) then all the pundits can say- “see we told you it was too soon!” If there is the understanding that the exit is on the near horizon even if it plays out over a period of years- it is reasonable to conclude that rates will start increasing and a bit of air taken out of the market’s sails.

  3. James Cameron says:

    “The development comes after The New York Times examined a dozen cases involving Mr. Scarcella and found disturbing patterns, including the detective’s reliance on the same eyewitness, a crack-addicted prostitute, for multiple murder prosecutions and his delivery of confessions from suspects who later said they had told him nothing . . . The new developments have proved embarrassing for Mr. Hynes, who is seeking re-election to his seventh term this fall. Although many of Mr. Scarcella’s cases date back to Mr. Hynes’s predecessor, Elizabeth Holtzman, his office has for years aggressively fended off appeals and denied public records requests from inmates who believe they were wrongly targeted by Mr. Scarcella.”

    Review of 50 Brooklyn Murder Cases Ordered

    http://goo.gl/2ya79

  4. hue says:

    The Slot Retirement Plan. Americans now spend more money on slot machines than movies, baseball, and theme parks combined
    (60 Minutes) Listen Also To: No Armed Bandit (99% Invisible)

    Physical Graffiti. How Does Liu Bolin Make Himself Invisible?(Smithsonian) Suspended Disbelief: the Amazing Art of Li Wei (Creators Project)

  5. VennData says:

    Canadian mounties claim first person’s life saved by a police drone

    http://www.theverge.com/2013/5/10/4318770/canada-draganflyer-drone-claims-first-life-saved-search-rescue

    More drones not less.

    Paul Rand needs his head examined.