My morning reads:

Best headline of the day: QE: Because Nobody’s Got Any Better Ideas (It’s Not That Simple)
• Treasury yields go up a bit (FT Alphaville)
• The New ‘New Paradigm’ for Equities (Moneybeat) see also Stocks Change Their Fuel (WSJ)
• The Heavy Toll Of Investment Fees (Rick Ferri)
• Don’t Believe New Housing Bubble Hype (Developments)
• Volcker’s Aim: Responsive Government (NYT)
• “Can Japan Export Its Way to Recovery?” (Econbrowser) see also Japan’s Bond Market Wants BOJ to Purchase More Short-Term (Bloomberg)
• Is There Really a “Conservative Reform” Movement in Policy? (Next New Deal)
• Hugh MacLeod – digital disrupter (diginomica)
new favorite tumblr: Screen Shots of Despair (Tumblr)

What are you reading?

 

QE: Because Nobody’s Got Any Better Ideas
Chart
Source: It’s Not That Simple

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.

15 Responses to “10 Wednesday AM Reads”

  1. Mike in Nola says:

    BR: do you have an update for this chart?

    http://www.ritholtz.com/blog/2011/04/case-shiller-100-year-chart-2011-update/

    As it shows, in 2011 home prices were still up at the 140 level with 100 as norm and had further to fall at that time to get back to the long term average. How low did they get before reversal? Hard to find a good chart on this. I found this one but the units aren’t well marked.

    http://www.bing.com/images/search?q=Case-Shiller+Index+Chart+2012&FORM=RESTAB#view=detail&id=D122C766C616C8154ABB20C0F664C608A480076C&selectedIndex=3

    If they didn’t fall much further, then showing a bounce off the then-lows shown in the article you cite does not disprove a new bubble, it only shows it is not as extreme as the previous ones. OTOH ….

    • Anonymous Jones says:

      I don’t think your argument leads to the conclusion that there is a new, less extreme bubble.

      Your argument seems to be that the last bubble has not yet fully deflated, and that the current appreciation is a false indicator like the mild rise of the Nasdaq in summer 2001 before cratering back to the trend line. And I agree with you to some extent; the argument you make certainly has not been disproved. I don’t think it’s correct, but it definitely hasn’t been disproved. [Note that I think, as you seem to think, that we will experience countrywide deflation in housing prices sometime in the next five years].

      The Case-Shiller chart is interesting, as history always is. The cycles of history are often quite instructive; yet they are rarely capable of yielding precise predictions in an intertemporal market covering millions of transactions in basically illiquid investments (covering everything from shacks to mansions) in a country with almost innumerable towns and cities of varying sizes spread over nearly 4 million square miles.

      • Mike in Nola says:

        Well, Case-Shiller is about the best we have. It is imperfect, but gives some idea.

        I would have agreed that the rise in prices not a new bubble except for the irrational exuberance with bidding wars and ads like I heard on CBS Sports Radio today offering to show you how to get rich flipping houses. I did expect some bumps up on the way down, but those things are a bit much. Even one of the NAR economists (not BR’s old friend) said that he thought the situation was unhealthy..

        I like “intertemporal”. Will have to remember it :)

  2. rd says:

    QE: Because Nobody’s Got Any Better Ideas

    This is basically what Bernanke’s most recent testimony to Congress was about.

    He effectively said “The Fed has pulled out all the stops so far. Additional improvement will need to come from thoughtful, rational, and coherent political and fiscal policy. Since you appear incapable of even having a conversation about this, QE will need to go to infinity and beyond unless some miracle happens and the economy decides to improve on its own.”

  3. NoKidding says:

    -saved as picture-

    Best infographic ever.

  4. PeterR says:

    The Cult of Capitalism.

    http://www.marketwatch.com/story/the-cult-of-capitalism-and-us-moral-decline-2013-05-29

    “We now see what John Bogle call a “mutant” capitalism that no longer resembles Adam Smith’s inspiring economic principles enshrined in our Declaration of Independence and Constitution. This type of capitalism has turned into an out-of-control virus destroying America’s moral values from within.”

    Well said IMO.

  5. nofoulsontheplayground says:

    Zero Hedge – “Art Cashin Asks and Answers if Fed Has Been Engaging in Stealth Tapering”

    http://www.zerohedge.com/news/2013-05-29/art-cashin-asks-and-answers-if-fed-has-been-engaging-stealth-tapering

    Interesting that the Fed has been purchasing almost double the MBS they said they would (over $80-Billion as opposed to the $45-Billion stated goal). This has dropped recently, but is set to ramp up again in June.

  6. willid3 says:

    is this where the US will go? will we out source our court system?
    http://www.guardian.co.uk/commentisfree/2013/may/29/privatising-courts-system-public-citizens

  7. willid3 says:

    did the oil and gas rigging scam hurt all of us?

    http://fuelfix.com/blog/2013/05/28/oil-market-rigging-may-have-caused-huge-damages-official-says/

    probably billion and billions, if not higher

    the next tax plan?

    http://www.guardian.co.uk/business/2013/may/28/oecd-corporation-tax-regime

  8. VennData says:

    Immigrants Give More to Medicare Than They Receive, a Study Finds

    http://www.nytimes.com/2013/05/30/health/immigrants-give-more-to-medicare-than-they-receive-a-study-finds.html

    Another data nail in the GOP coffin of loud-mouthed lies.

    Go on GOP voter, tell us how bad immigrants are for America. You wish we never had any, right?

  9. willid3 says:

    hm. wally world of all companies, is trying out a new way to address health care.
    http://www.nationaljournal.com/magazine/wal-mart-s-super-counterintuitive-health-care-plan-20130523

  10. VennData says:

    The IRS is beginning to investigate Zero Hedge Commentors

    http://www.zerohedge.com/The_IRS_is_beginning_to_investigate_Zero_Hedge_Commentors.html

  11. PeterR says:

    Japan cancels wheat order due to GMO issues.

    Here comes the next hit to the US economy, and we created it with our lax oversight of what really matters IMO.

    http://www.marketwatch.com/story/japan-cancels-us-wheat-order-on-gmo-fear-report-2013-05-30?dist=beforebell