My afternoon train reading:

• Watch What Fed Says, Not What It Does (Real Time Economics) see also Abe-Bernanke 1-2 Punch Pummeling World’s Top Carry Trade (Bloomberg)
• Are There Any Stock Values Left? (It turns out yes)  (Morningstar)
• Google stock split closer to reality (CNNMoney)
• Analysis: The Myth of the US Housing Bubble (World Property Channel) see also Here Comes the Housing Inventory (Redfin)
• LinkedIn Builds Its Publishing Presence (NYT)
• What FDR Hated About Glass-Steagall (Echoes)
Unnatural Disaster: How mortgage servicers are strong-arming the victims of the Moore, Oklahoma tornado (among others) (New Republic)
• Filmmaker picks a copyright fight with “Happy Birthday” (ArsTechnica)
• Your Hidden Censor: What Your Mind Will Not Let You See (Scientific American)

What are you reading?

Euro Becomes the Port in a Storm
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.

11 Responses to “10 Monday PM Reads”

  1. PeterR says:

    Pretty damning comments from retired federal Nancy Gertner about the FISA court:

    “As a former Article III judge, I can tell you that your faith in the FISA Court is dramatically misplaced.

    “Two reasons: One … The Fourth Amendment frameworks have been substantially diluted in the ordinary police case. One can only imagine what the dilution is in a national security setting. Two, the people who make it on the FISA court, who are appointed to the FISA court, are not judges like me. Enough said….

    “It’s an anointment process. It’s not a selection process. But you know, it’s not boat rockers. So you have a [federal] bench which is way more conservative than before. This is a subset of that. And it’s a subset of that who are operating under privacy, confidentiality, and national security. To suggest that there is meaningful review it seems to me is an illusion.”

    Scary IMO.

  2. stonedwino says:

    I totally don’t get how or why the Euro has been strengthening again as of late. Short covering?

    It ain’t perfect here, but better than most of Europe, that is buried in the crapper and for multitude of reasons, that will not be reversed anytime soon. So why is the Euro stronger lately?

    Any F/X wizards out there?

  3. dtraxel says:

    Great story about Happy Birthday, but it doesn’t mention famously bad PR of about 15 years ago when they went after the Girl Scouts for singing the song around their camp fires.
    Way past time that someone took the fake copyright holders on, and may victory reward them!

  4. drewburn says:

    Re: Glass Steagal. Interesting arguement/history. I always think the one thing forgotten (and maybe FDR worried about this) was that deposit insurance IS SUPPOSED TO PROTECT SMALL DEPOSITORS, not large. There was a limit imposed. During the S&L collapse, Reagan allowed this limit to be “breached.” Huge mistake in my oppionion. Invited moral hazard and future excess risk taking/bailouts. It WAS a simple idea: That small folks needed a place to invest (as opposed to their mattress.) And those depositors formed the core of ordinary bank lending (commercial.) If there were bigger depositors, it was buyer beware. Presumably there were always some big shots in town who might go over the limits, but that was “at their risk.” Reagan blew that out and suddenly, we had a problem.

    Barry, I read and own Bailout Nation. I think there was a significant difference between the early bailouts and this one. I made large bank depositors into secured bond holders.

  5. rd says:

    Re: Mortgage servicers and disaster victims:

    It has been official US policy since 2008 (both Bush and Obama Administrations) that mortgage servicers are part of the TBTF framework and therefore their stability is paramount to the safety and security of the financial system. As a result, prosecution of them for egregious and illegal behavior is contrary to the best interests of the United States. It is more important that they be allowed to improve the financial stability of the servicers and their MBS clients than help disaster victims. After all, it doesn’t really matter how a mortgage is discharged, by cash payout, foreclosure, or insurance payment, as long as the mortgage servicer can satisfy their executives, shareholders, or clients. Erroneous or fraudulent paperwork is a small price to pay to have a stable financial system that will improve the lot of the average American….cough….cough.

  6. chartist says:

    There’s stock market values out there, just not the ones Morningstar points out…….Ford is looking to break out of a 12 year base….

  7. Willy2 says:

    “The Myth of the US Housing Bubble” ? “Historic lows” ?

    When I read that prices in some cities have gone up 20% last year then that’s for me a clear sign of a bubble. Real estate prices will have to go back to 3.5 times annual income in order to call a bottom in housing/real estate. And I am NOT convinced annual income will rise in the (near) future. Au contraire, I expect income to fall further in the next say 5 to 10 (perhaps even 20) year.

    People are craving for income and (- IMO – wrongfully) believe the myth that rental properties will give them the income they need.

  8. willid3 says:

    which is more likely to be an indicator of how well off your children will be, is it education or how well you are?

    • rd says:

      The big difference between this crisis and previous ones is that the governments and central banks are denying the wealthy the right to bankrupt themselves which is an essential part of capitalism. Protecting the system is different from protecting the individuals in the system but this crisis appears to have blurred those lines.

      These periods of financial turmoil are when the old guard rotates out and the new guard rotates in. Some of the old guard usually make sure to stabilize portions of their fortunes but they generally do it through their own devices not relying on insurance from the government.

      Historicaly, it is not accidental that GINI coefficients and other inequality measures reset themselves in the depths of depressions and then take another 30 years or more to go out of whack like today.

  9. VennData says:

    I’m looking into Putin’s soul this week. Bring back Bush!