My morning reads:

• Tips From Wall Street Hedge Fund Gurus Fail to Reward Faithful (
• Jobless Claims in U.S. Unexpectedly Fall to Five-Year Low  (Bloomberg)
• Earnings Not Yet a Viral Sensation (WSJ)
• Stock Markets Rise, but Half of Americans Don’t Benefit (Economix) but see Everyone Who Started Watching ‘Mad Money’ In 2005 Now Billionaires (The Onion)
• Economists See Deficit Emphasis as Impeding Recovery (NYT)
• Are ‘Hot Hands’ in Sports a Real Thing? (NYT)
• What is wrong (and right) in economics? (Dani Rodriks Weblog) see also Rethinking macroeconomic policy (VOX)
• China’s Next Leap Forward: From Comrades to Consumers (Diplomat)
• Elizabeth Warren: Give students the same deal as big banks (Politico)
• 7 Dodgy Food Practices Banned in Europe But Just Fine Here (MotherJones)

What are you reading?


Fiscal Policies Take a Toll
Source: NYT

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 Thursday AM Reads”

  1. gmacd says:

    Looks like monetary policy roughly offset fiscal policy. We’ll probably get similar growth to 2012 now.

  2. VennData says:

    So what am I reading? More like watching! I’m watching Fox’x Gavel-to-Gavel coverage of the Bengazi trials!!!

    Ironic though, that the party that didn’t even want pictures of flag-draped coffins coming home from Iraq, is so overwhelmingly concerned with resurrecting this clown car ride that was put together last year.

    • ottnott says:

      Fox wants to be sure that the 23 Fox viewers who might have considered voting for Hilary Clinton in 2016 are convinced not to do so.

  3. VennData says:

    3D-Printed Gun’s Blueprints Downloaded 100,000 Times In Two Days

    ​​I got mine! Now Obama won’t get me with one of his drones ​. All I need is one shot, like Luke Skywalker!​

  4. romerjt says:

    Concern Food Practices . . . to avoid arsenic in rice I buy California rice and avoid rice grown in states that used to grow cotton as the soil was treated with arsenic compounds to kill the boll weevil. I buy “air chilled” chicken to avoid the bleach bath and added water used most all processing. This also avoids the highly processed (arsenic) feed. The whole chicken from a company called “Smart Chicken” come tightly wrapped and go right on the skewer from the rotisserie thus avoiding the annoying job of tying it up around the skewer. It also tastes a lot better.

  5. RW says:

    The Health Care “Market” is So Not a Market

    This recent spate of articles about hospitals releasing what they charge for procedures is interesting, predictable, useful, and a timely reminder that our health care system lacks fundamental characteristics of markets, like symmetrical information and consistent pricing.

    • rd says:

      Another fundamental aspect of a market is the ability to negotiate and/or walk-away from a transaction.

      For many procedures, it is not practical for the patient to negotiate the scope and budget of his hospital costs. The patient that is wheeled in on the gurney is not about to do a multi-hospital reverse-auction on his heart repair.

      The only parties that can do the negotiating are the large insurers, including private insurance and Medicare. that is why it was so bizarre when the prescription part of Medicare was passed with a prohibition on Medicare negotiating prices with pharmaceutical companies – the rest of the world just shook its head in amazement at that one.

  6. Init4good says:

    The Market Faces Seasonal Headwinds
    Over the last few weeks, I know I’m not the first to mention the “Sell in May, Go Away” truism, but figured I’d give my two-cents on the subject anyway.

    The following chart shows the S&P 500 for this year compared to its averages over the last 5-, 10- and 30-years:

  7. rd says:

    Mortgage servicers at TBTF banks are stunned to discover that breaking the law can actually cost them money:

  8. AHodge says:

    VOX publishing IMFs Blanchard on forecasting? He’s poster boy for how not to do it.
    He does ask “ is there a credit and financial cycle, separate from the business cycle, as Claudio Borio (IMF 2013) suggests?” then still suggests a viewpoint of NO… just shocks.
    Well plenty of others have suggested or proved, anywhere from Minsky and all his good followers ,like Paul McCully or Roubini, Shiller, to Simon Johnson, Charles Calomiris, Steve roach or Rosenberg, there is a credit cycle. Not to mention the practitioners like Dalio, Soros, and Zaulauf, and the govt officials seeing the flaws like Volcker, Bair and understanding that part of the downside risk. The approach of most neoclassicals including this joker, to ignore the banking and financial sector entirely, or completely misunderstand, is an ongoing groupthink embarrassment to the economics profession.
    Blanchards IMF macro forecasts especially for Europe border on the ridiculous. Even in the IMF, the Global Financial Stability group has laid out in detail for their last three semiannual reports, the credit and financial downcycle for Europe, namely ugly. Apparently they are not allowed to publish their view of consequences for what it means for recession and job loss.
    But VOX is good for having a range of views, and publishes Johnson and other competent analysts.

  9. Frwip says:

    Jobless Claims in U.S. Unexpectedly Fall to Five-Year Low. Great. Let’s rejoice. Awesome.

    Meanwhile, the key indicator of employment-population ratio for ages 25-54 is basically flat year of year, a mere +0.2% up for the past four months.

    Basically, the recovery is stuck in neutral for nearly all Americans.

  10. rd says:

    A quiet environmental disaster has been unfolding over the past few decades:

    The Clean Water Act and RCRA have greatly reduced industrial discharges into our rivers and lakes. The construction stormwater regulations have done a lot to reduce those sediment loadings. However, we are still left with large loadings to our surface waters from uban runoff, including stormwater on impermeable surfaces that collect pollutants like oil and grease, pesticides and fertilizer run-off from suburban lawns, and the big one – industrialized agricutlural runoff of sediment, fertlizer, herbicides, and pesticides. On top of that there are still 10s of thousands of small and large dams that disrupt natural flows and allow for excessive warming of water.

    As a result, the ability of our rivers to spawn fish and have them survive has been seriously degraded over the past century or two. The “easy” battles have been fought and won where very defined sources could be addressed so our rivers no longer catch fire. Now it is the hard stuff of non-point source pollution that needs to be addressed lot by lot, town by town. Similar to bee colony collapse, these “off the radar” issues have the potential to be major problems moving forward in maintaining resilient, sustainable societies. The actions of lots of individual homeowners, small business owners, and farmers will end up deciding the outcome for our surface water.

  11. hue says:

    Jaron Lanier on the Cheap Treats & Religious Emotion of Moore’s Law (Wired)

    For Farmers, Rise in Suicide Rate Is Old News (Minyanville)

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