My morning reads:

Kudlow: Has Bernanke Gotten the Story Right? (National Review)
• Are Market Valuations too High? (Turnkey Analyst) see also Equity Risk Premiums (ERP) and Stocks: Bullish or Bearish Indicator (Musings on Markets)
• As rich gain optimism, lawmakers lose economic urgency (Washington Post)
• Japan’s New Optimism Has Name: Abenomics (NYT) see also Fed Will Fuel Dollar Rally With More Confidence (Moneybeat)
• On Whose Research is the Case for Austerity Mistakenly Based? (Jeff Frankels Blog)
• Wall Street’s Giants Try ‘Flow Monster’ Formula (WSJ)
• The One-Person Product (Marco) see also A better, brighter Flickr (flickr)
• How the IRS’s Nonprofit Division Got So Dysfunctional (ProPublica)
• How to buy happiness (Los Angeles Times)
• 2013 National Geographic Traveler Photo Contest (Atlantic)

What are you reading?


Gold Making a Double Bottom?
Source: Bespoke

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.

11 Responses to “10 Tuesday AM Reads”

  1. lrh says:

    I think you might like this: “How to humble a wing nut” by Cass Sunstein.

  2. hue says:

    Everything Is Rigged, Slight Return: European Commission Raids Oil Companies in Price-Fixing Probe (Rolling Stone)

    The Gaza Day Tripper. Delivering KFC by Tunnel, Not Too Fast but Satisfying (NYTimes)

    I Need Some Help With Yelp (Mother Jones)

  3. RW says:

    Department of “Huh?!”: Apple Computer Valuation Edition

    “If I have the right numbers in my head (which I may not), Apple currently makes $40 billion a year in profits, has $150 billion in free cash, and has a market value of $500 billion. That’s a (price-cash)/earnings ratio of 7.75.

    In what way is that divorced from fundamentals? Sounds like the market thinks that Apple has a very good franchise with a half-life of seven years, which seems about right to me. …”

  4. Manofsteel11 says:

    The US water sector is in need of restructuring.
    E&Y report offers a critical analysis and recommendations:$FILE/Cleantech-Water-Whitepaper.pdf

  5. VennData says:

    The Washington Post is wrong! Obama has ruined the life of rich people in this country.
    How can the rich gain optimism with their tax rates so egregiously, embarrassingly high?
    The deficit is NOT really down! The economy is losing jobs not gaining them! The stock market is DOWN not up the way the liberal media is reporting, look at it on an inflation adjusted basis!!! …because there is unreal inflation. Look how high art prices are!! Gold is REALLY UP!!!

    – Jack Welch.

  6. Willy2 says:

    “Keep the fire under the US dollar crackling” ? “FED will fuel Dollar rally with more confidence” ?

    The WSJ is completely “off the deep end” with this statement. What is the WSJ smoking ? They’re beating the patriotic drum. How sad. Aren’t they aware that the worst thing that can happen (even for the US) is a USD going up ?

    A rising USD means falling commodity prices, and therefore a falling US Trade Deficit and a falling US Current Account Deficit. And that means that the current US administration can’t/won’t sell any T-bonds to foreigners anymore. And has to find buyers for all those T-bonds inside the US. Rising interest rates anyone ?

  7. Willy2 says:

    Yes & No.
    1. Each market “dances to its own tune”. Sometimes they move in the same direction (for a long time), and sometimes they move in opposite directions (for years). Take e.g. 1984 up to 1995. In that timeframe there was one constant theme: the USD/DEM went – on average – lower and lower. However, rates showed a different behaviour. In the 2nd half of the 1980s US rates (drifted) higher but in the 1st half of the 1990s US rates actually went lower. So, where’s the correlation between the USD & US rates ?
    2. Currently I expect – for the time being – the USD to go higher and US rates to go lower.
    3. When (NOT IF), when US bond markets rates finally start to implode then it WILL be confirmed with a sharply rising USD. Something like in the 2nd half of 2008 when the markets tanked and the USD increased by some 25% in 5 months. I wouldn’t be surprised to see the USDX go from 80-isch (today) to 120 or 140 (160 ??). A 110 or higher simply means Armageddon for the world economy (including the US !!!).