Good Sunday Morning! Yet another glorious day, a streak that is increasingly destined to end. If you are stuck indoors today, well then we have some items for your reading pleasure:

Lowenstein: The Federal Reserve’s Framers Would Be Shocked (NYT) see also Markets Might Be Misreading Fed’s Messages  (Real Time Economics)
• 7 mutual fund ads you’ll never see (Marketwatch)
• China’s economy is freezing up. How freaked out should we be? (Washington Post) see also All About the Maos: Charting China’s Cash Crunch  (China Real Time)
Martin Wolf: How Austerity Has Failed (NYRB)
• Is Mark Zuckerberg the new Bill Gates? (pandodaily)
• Bank of America’s Foreclosure Frenzy (Bloomberg)
• Going Dutch — Could Fee Hurdles Come Down Everywhere? (WSJ/Moneybeat)
• Booz Allen, the World’s Most Profitable Spy Organization (Businessweek)
• Why Tesla Thinks It Can Make Battery Swapping Work (MIT Technology Review)
• Take It Outside (WSJ)

Whats for brunch?

 
Ireland’s Not So Rosy Turnaround
0622-CHARTS-FOR-FRONT-articleLarge
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.

18 Responses to “10 Sunday Reads”

  1. PeterR says:

    Interesting charts in the WaPo piece on China. Are these the kinds of “seismometers” which Didier Sornette monitors for impending Dragon-King events?

    http://www.ritholtz.com/blog/2013/06/how-we-can-predict-the-next-financial-crisis/

    The exponential spikes up recently don’t “look right” ?

    Is Friday’s VIX high of 20.93 enough of a peak for a short-to-medium-term market bottom, especially for end-of-month/quarter/half window dressing? [new charts at link above]

    PS — How much of last week’s sell-off was options or margin-related? Bond-related?

  2. Willy2 says:

    “China’s economy is freezing up. How freaked out should we be?”

    The US should be very freaked out. This leads to falling commodity prices. Falling commodity prices means a shrinking US Current Account Deficit. And contrary to common held belief, it’s the last thing the US Treasury wants to happen because it makes financing the US deficits MUCH harder. Then it must find more buyers for T-bonds inside the US.

    • barbacoa666 says:

      If deficits are falling, there will be less debt to finance. If interest rates rise, it will be easier to hock T-bonds.

      But, if Fed budget deficits fall, will corporate profits also fall? If corporate profits fall, will stocks also fall, and demand for bonds also rise?

  3. denim says:

    A couple of reads from here:

    Market Power, Minimum Wages, and the Sins of Friedmania
    by Linda M Beale

    http://ataxingmatter.blogs.com/tax/2013/06/market-power-minimum-wages-and-the-sins-of-friedmania.html

    7 Important Examples of How Markets Can Fail
    By Mark Thoma, The Fiscal Times
    http://www.thefiscaltimes.com/Columns/2013/06/18/7-Important-Examples-of-How-Markets-Can-Fail.aspx#page1

  4. Cavex says:

    Great stuff! Thanks for doing this.

  5. VennData says:

    Watch Wilco cover Daft Punk, The Replacements, and Pavement

    http://consequenceofsound.net/2013/06/watch-wilco-cover-daft-punks-get-lucky-the-replacements-color-me-obsessed/

    Also, finally glommed on to someone’s extra ticket to Book of Mormon. OMG! (aka “Oh My Gosh!”) It is hysterically funny. Do not miss it

  6. VennData says:

    N.S.A. Leaker Leaves Hong Kong on Flight to Moscow

    http://www.nytimes.com/2013/06/24/world/asia/nsa-leaker-leaves-hong-kong-local-officials-say.html

    Snowden a Hero of the Soviet Union! Hurrah!

    Not bad for a high school drop out and sufferer of Dunning-Kruger Malady.

    Probably a conspiracy to get Kraft’s Super Bowl Ring back.

    All you whacked-out, ignorant lovers of Snowden should be proud of him now.

  7. hue says:

    WWII ‘Deserters’: Stories Of Men Who Left The Front Lines (NPR)
    Records show that 50,000 American soldiers deserted in the European theater during World War II. While this does not seem unusual, that impression changes if you consider the context: Only 10% of soldiers in uniform actually saw combat.

    Surveillance Culture Is Not A Two-Way Street (VICE)

    Your Desk Is Making You Fat (BizWeek)

  8. VennData says:

    Re Martin Wolf on the failure of austerity…

    …just because austerity always fails, doesn’t mean it can’t be the main plank of GOP economic orthodoxy!

  9. MidlifeNocrisis says:

    @Willy2

    “Then it must find more buyers for T-bonds inside the US.”

    The Fed can pretty much buy unlimited T-bonds. The Fed is located inside the US. Just sayin…..

  10. Jojo says:

    What if Superman Punched You?
    http://www.youtube.com/watch?v=V-fL8zopddI

    AND

    Kryptonite Is Crap
    The weird, dumb history of Superman’s ill-conceived vulnerability

    Paul Fairchild Jun 20 2013

    Superman debuted in Detective Comics’ (known now as DC Comics) Action Comics #1 in April of 1938. It depicted Superman’s first sally of righteousness into the criminal underworld of Metropolis. On its classic cover, thieves run from him, wild with fear, their expressions just short of the agony on the face of the poor bastard in Edvard Munch’s “The Scream.”

    Those common, everyday criminals had no chance. Their opponent was stronger, faster and invulnerable. Superman was unbeatable. It wasn’t just a problem for criminals. It was a problem for the writers of Action Comics. Invincible characters are boring. Superman’s creators kept fans interested by piling on gimmicks, but after riding the wave of novelty, writers had to find a way to knock The Man of Steel off his lofty perch. To make him interesting they had to make him vulnerable. Their solution was a spectacularly bad, poorly thought out plot device: kryptonite.

    http://www.theatlantic.com/technology/archive/2013/06/kryptonite-is-crap/276984/

  11. VennData says:

    Bond Losses of $1 Trillion if Yields Spike, BIS Says

    “Clear central bank communication well in advance of any moves to tighten will be critical in this regard.”

    http://www.cnbc.com/id/100836919

    …to do what? Sell them to somebody else? That “somebody else” certainly wouldn’t mind the losses. These CNBC authors are as deranged as the people holding bonds. So by selling them “we” will avoid the $1T in losses during the inevitable hike in rates by uhh… by uhh. selling the bonds to secret lizard aliens who will sit on them and then wait until rates stabilize then return to Earth and get the market value AFTER the bond debacle’s rate rise.

  12. VennData says:

    Tennessee Official: Water Complaints “Act of Terrorism”

    “​…A Tennessee Department of Environment and Conservation deputy director is threatening citizens with being listed as terrorists. Sherwin Smith, deputy director of TDEC’s Division of Water Resources said: ‘But you need to make sure that when you make water quality complaints you have a basis, because federally, if there’s no water quality issues, that can be considered under Homeland Security an act of terrorism…”

    http://www.tennessean.com/article/20130621/NEWS02/306210110/Official-Water-complaints-could-act-terrorism-?

    Senator Corker, you thoughtful, reasonable all-about debit-reduction guy have such reasonable people back him to help you hold on to that precious Senate seat of yours that you are doing all you can with to cut the debt and deficit ….except of course inserting a $30B fence building project into the Immigration bill.

    http://latinalista.com/2013/06/border-reaction-to-corker-hoeven-border-security-amendment-swift-and-negative

    Oh those wacky “conservatives.”

  13. WKWV says:

    Is Wolf’s link broken?