My morning reads:

About that whole downgrade thingie:  S&P Revises U.S. Outlook to Stable (Fox) see also S&P’s Lack of Sway on Display in U.S. Move (WSJeejits!
• The 3 Worst Financial Predictions of the Last 5 Years (Pragmatic Capitalism)
• Is Japan already dead? (Worthwhile Canadian Initiative) see also What Abenomics tells us about the great bond market asset bubble (Telegraph)
• More proof of FINRA’s corruption:  A Rise in Requests From Brokers to Wipe the Slate Clean (DealBook)
• Skyscraper Prices Head North (WSJ)
• Scaramucci Seeks Money for Manhattan Hedge-Fund Hangout (Bloomberg) see also Scaramucci Schmoozes His Way Into Funds (Bloomberg)
• Recharge Now! Tesla stock could be in trouble unless they come up with a cheaper, stronger battery  (Barron’s)
The latest finance scam: Tire Rentals (Credit Slips) see also High prices are driving more motorists to rent tires (Los Angeles Times)
• The economic case for the US to legalize all drugs (Quartz)
• ‘This Is Our Signature’: iOS 7 (Daring Fireball) see also Why iRadio Could Be a Hit for Apple and a Dud for Big Music (All Things D)

What are you reading?


It’s a good thing S&P isn’t a hedge fund
Source: The Reformed Broker

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 Tuesday AM Reads”

  1. morning_star says:

    Using metadata to oust Paul Revere before he starts any trouble!

  2. rd says:

    Booz Allen’s probelms are behind them now. They have fired the leaker.

    I wonder if this entailed a long discussion with the Talent Management Department and if they are planning on rehiring him as a consultant on computer system security?

  3. nofoulsontheplayground says:

    Denis Oullet – “Margin Calls Can Be Ruinous In Many Ways”

    The title of this article is misleading. It’s really one of the most comprehensive studies I’ve ever seen regarding the driving blend of S&P 500 high earnings.

    Lower tax rates for health, biotech, and technology companies plus their increasing share of the GDP pie appear to be a big reason for the elevated S&P earnings above the long term historic means.

  4. “Director of National Intelligence James Clapper claims the recent wave of leaks has done ‘huge, grave damage’ to our intelligence gathering capabilities.”

    Leaks fallout: How bad could it be?

    Of course, Clapper also had this widely reported exchange with Senator Wyden of Oregon at a Senate hearing in March:


    Wyden: Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?

    Clapper: No sir.

    Wyden: It does not?


    Since then he’s characterized this lie as responding in the “least untruthful manner” possible.

    Clapper is a former executive of Booz Allen Hamilton, which has made billions providing technology and services consulting to the federal government and is Edward Snowden’s former employer. Some may recall that in 2003, as head of the National Geospatial-Intelligence Agency, he explained the absence of WMDs in Iraq by arguing “that illicit weapons material ‘unquestionably’ had been moved out of Iraq.”

    Two of the five individuals who have served as Director of National Intelligence are former Booz Allen executives.

    • rd says:

      Clapper was absolutely correct.

      It is the telecom and internet companies that collect the data. The NSA just provides free server storage facilities for them.

      • willid3 says:

        yup. move along ,nothing to see here.

        i am guessing that they must be collecting the current months billing data as companies really have little interest in keeping it very long. though with data warehousing its possible that the companies actually have more data over a longer period. but nobody cares about them having it.

      • Oh, I think think this story is just getting started . . . we shall see . . .

  5. VennData says:

    Self-published ebook sales reach 20% of genre market

    “…Self-published titles accounted for over a fifth of crime, science fiction, romance and humour ebooks sold in UK in 2012…”

    “…The overwhelming majority [of self-published books] are terrible – unutterable rubbish,” said Franklin…

    He’s an expert seeing has how he’s read so many of them. Yeah I bet he’s read a lot of them.

    Invictus, we have another liar here.

  6. marmot says:

    That rent-a-tire story is depressing.How is that not usury?

    • RW says:

      Without a doubt but perhaps usury laws somehow gloss those who are too poor to get a loan.

      Still, the tire story reminded me of Anatole France’s caustic observation: “In its majestic equality, the law forbids rich and poor alike to sleep under bridges, beg in the streets and steal loaves of bread.”

      • rd says:

        Anatole France is out of date. The poor can’t afford to hire lobbyists to beg in the streets for them to get the laws changed to allow them to steal the money to buy the bread without penalty.

  7. RW says:

    WRT the S&P debt revision comedy.

    S&P Thought the Federal Government Would Forget How to Print Dollars

    The question that S&P is supposed to answer with its rating is whether bonds will be paid off as scheduled. The United States issues debt denominated in dollars, which it has the ability to print in whatever number it desires. Therefore the downgrade can only have been taken to mean an increased probability that the country would forget how to print dollars.

    It would be good to point this fact out in news articles that report on the rating agencies plans to reverse this downgrade. Otherwise readers might be led to believe that S&P assessments are actually based on the risk that the United States will default on its debt.

    One could observe that S&P and other bond ratings agencies have about as much business rating the soveriegn debt of developed nations as Meredith Whitney does but the flip side of that observation is more interesting: There is clearly an eager audience for this kind of clueless bilge and, apparently, an audience willing to invest/buy accordingly; teh stupid is out there.

  8. willid3 says:

    can the US become independent in oil and gas? not if the declines in current oil and gas well production is higher than new finds.

  9. VennData says:

    Too bad Tesla’s losing the ability to distribute “business friendly” Texas

    Yeehah, bring yer new ideas to Texas.

  10. VennData says:

    Bove: CFPB Will Send Consumers to the Mafia

    ROFL! Invictus, another know-nothing talking head.

  11. Willy2 says:

    “S&P Revises U.S. Outlook to Stable” ??

    Did the US Treasury “beat the crap out of” S&P in order to get this revision ? When S&P downgraded the US from AAA to AA+ they were “investigated” by the Treasury. I think the word “harrasment” came closer to the truth. Geithner & Co. were “not amused”.