My 10 morning back-in-NY reads:

• What’s Powering the Strongest Bull Market Since WWII? (Fiscal Times)
Here’s proof: Uncertainty didn’t hold back economy (MarketWatch)
Kotok To Whitney: What Planet Are You On? (Index Universe)
• The Correlation Conundrum (Capital Spectator)
• Negative Fed Feedback Loops? (Tim Duy’s Fed Watch)
More Gold buggery: No, the Comex is not going to default (FT Alphaville)
• Silicon Valley is Hacking Your Food (Inc.)
• Why Larry Summers Won’t Be Fed Chair (Barron’s) see also Larry Summers and the Pivot to Austerity (Calculated Risk)
• What if Mitt Romney had won? (Economist)
• MIT creates the first perfect mirror (Extreme Tech)

What are you reading?

 

Bonds Could Get Swept Away by the Flow
Chart
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.

21 Responses to “10 Friday AM Reads”

  1. DeDude says:

    That graph makes you wonder how much of the fall in interest rates were from QE and how much was due to “scared money” rushing into “safe assets”.

  2. 873450 says:

    European dictionaries updated to include financial crisis language and slang

    “Memo From Europe – A Continent Mired in Crisis Coins a Language of Economic Pain

    http://www.nytimes.com/2013/07/26/world/europe/a-continent-mired-in-crisis-coins-a-language-of-economic-pain.html?pagewanted=2&hp

    The long economic crisis in Europe has … spawned a language of its own, brought once exotic financial terms into popular use and generated a slang that reflects the dark humor used by many to cope with their enduring troubles.”

    Greece
    “neoptohi” = the new poor
    “poukou” = pre-crisis era

    Portugal
    “geração à rasca” = distressed generation

    Spain
    “ni-nis” = legions of young people who are neither studying nor working
    “población activa” = population old enough to work
    “yayoflautas” = “old flutes” = elderly protesters
    “marea blanca” = “white tide” = protesting doctors and nurses

    France
    “choc de compétitivité” = competitiveness shock

    Italy
    “spreaddite” = intensification of suffering caused by the high spread

  3. jbay says:

    Silicon Valley is Hacking Your Food (Inc.)

    ~ Sounds like the Guantanamo bay diet. That’s bad to say isn’t it.

  4. willid3 says:

    a problem with hiring?
    http://baselinescenario.com/2013/07/25/toxic-trait-to-avoid-1/

    seems a lot of hiring is done on personal impressions. which leads to a lot of executives and management with the ability to manage up, while having little to no ability to manage down. and that leads to damage to the company that will take a long time to over come.

  5. Conan says:

    Taxes, Entitlements and Federal Debt: New Update

    2012 entitlement costs slightly exceeded the entire tax revenue for the year — personal, corporate, and social.

    However, according to the Congressional Budget Office (CBO), entitlements accounted for only about 58% of 2012 spending. Defense spending took another 19%, nondefense discretionary 17%, and interest payments 6%. We ended 2012 with an on-budget deficit of $1.151 trillion.

    The debt held by the public at the end of the year was $11.280 trillion.

    http://advisorperspectives.com/dshort/commentaries/Taxes-Entitlements-and-Federal-Debt-130724.php

    • Joe Friday says:

      His charts and assumptions are completely skewed. All of Social Security and half of Medicare are self-financed, and he’s not accounted for the Airport, Railroad, Highway, Military, and other trust funds.

      Simply more RightWing funded propaganda to distract from the fact that our federal deficits & debt are as a result of massive tax cuts for the Rich & Corporate, not “entitlements”.

    • bear_in_mind says:

      @Conan: Thanks for sharing.

      I’ve been noticing an increasingly sharp shift to the Right in assessments offered by Doug Short. Probably not incidental in light of the increasing editorial footprint he’s offered to Mike “Mish” Shedlock, who never misses a chance to drive home his meme: “government = bad / entrepreneur = good.”

      This latest report by Mr. Short is focused on an, “…astonishing growth of entitlements” which really isn’t astonishing at all when one grasps the changing nature of American demographics (Baby Boomers, anyone?); the structural changes in employment / unemployment; and runaway healthcare costs. The Boomer factor was known since the 1950′s; labor / employment issues have been on-the-radar since the 1970′s; and health care costs became a focus in the late-1980′s.

      Thus, it should come as no surprise that the Reagan administration (w/ Easy Al Greenspan) raised taxes and adjusted the payroll tax rates to protect Social Security in the mid-1980′s; the Clinton administration tried (but failed) to get their arms around health care, but deserve some consternation for facilitating the offshoring of American jobs; yet they offset some of this pain by balancing the Federal budget.

      Looking at Mr. Short’s charts, it’s abundantly clear that the growth of Revenues and Outlays were fairly balanced from 1971 to 2000, but disequilibrium took hold after George W. Bush slashed tax rates in 2001 (see: http://advisorperspectives.com/dshort/charts/policy/CBO-revenues-outlays-public-debit-since-1971-with-projections-to-2023.gif).

      I think most would agree this is rather odd omission in Mr. Short’s assessment, as a return to higher marginal tax rates would neatly address the preoccupation with the national debt. However, raising taxes flies in the face of the current Republican “starve the beast” approach to government.

      In arguing generally against “entitlements”, Mr. Short also doesn’t factor for America’s population growth (per capita), which will obviously contribute to trend growth. Mr. Short also included a curious measure called “Elderly Dependency Ratio” to bolster his argument (or “concern”) over the increasing percentage of Americans aged 65 and older.

      Now you may ask, why do I find Elderly Dependency Ratio odd? Well, it applies a negative valence to retirees which glosses-over their lifetime contributions to our economy and society, as if they’re “entitled” to something they didn’t create and didn’t earn. This is not only false, but constructs and injects a negative meme to justify the diminution of their economic value and rights.

      What makes it all the more curious is his July 10th blog entry, “Amazing Demographic Trends in the 50-and-Older Work Force” where he illustrates not the dependency of seniors, but the increasing labor participation by Americans aged 65 and over (see: http://advisorperspectives.com/dshort/charts/index.html?employment/LFPR-Growth-since-2000-older-cohorts.gif).

      At the end of this blog commentary, Mr. Short states, “…perhaps the participation rates of the older cohorts will gradually reverse directions. That would certainly improve the job opportunities of younger generations.” This seems to suggest Mr. Short believes subsequent generations are entitled not only the historically low marginal tax rates they currently enjoy, but permission to renege on the very social contracts which were foundational in the prosperity Americans reaped for most of the 20th Century.

      Lastly, The PBS NewsHour aired a segment, “How Big a Boost Do Working Seniors Give the Economy?” by Paul Solman which explored how a 101 year-old named Rosa Finnegan continues working doing assembly work and questions, “…what if Americans worked as long as Rosa Finnegan… whatever she’s making, she’s paying taxes, federal and state income, Medicare and Social Security…”.

      This seems to perpetuate a mindset similar to Mr. Short, namely, seniors should expect that younger generations are more “entitled” to retaining their lower marginal tax rates than the elderly are to receive the return of funds they provided over their lifetimes.

      So, please remind me: Who’s the entitled group?

      How Big a Boost Do Working Seniors Give the Economy?
      PBS NewsHour
      http://www.pbs.org/newshour/bb/business/jan-june13/olderworkers_06-12.html

  6. willid3 says:

    GOP blames Obama for every thing thats ‘wrong’ even when presidents have little to no control over gas prices
    http://www.forbes.com/sites/lorensteffy/2013/07/26/the-persistent-myth-of-obamas-role-in-high-gasoline-prices/

    its a world market. a lot of the oil is controlled by a cartel. that essentially sets the price of oil, as others will follow those prices too.

  7. VennData says:

    SAC Case Threatens a Wall St. Cash Cow

    “…Banks received $9.3 billion from clients in stock trading commissions in the 12 months through the first quarter of this year, according to a study by Greenwich Associates. Brokers said that SAC Capital was one of the largest commission generators for Wall Street…”

    http://dealbook.nytimes.com/2013/07/25/sac-case-threatens-a-wall-st-cash-cow/

    “One of the largest” What the heck does that mean? And are the people on the other sides of all those trades going to prison too so they won’t want to buy or sell anymore?

  8. Hallsto says:

    Perfect mirror, one of the most important advancements in human history? Perfect information transmission has nearly endless application.

  9. VennData says:

    Some Democrats Look to Push Party Away From Center

    “…Liberals, pointing to a bankrupt Detroit and new reports of diminished class mobility, believe the plight of lower-income and young Americans is so severe that the party must shift away from the center-left consensus that has shaped its fiscal politics since Bill Clinton’s 1992 election and push more aggressively to reduce income disparity. “The sooner we get back to a good, progressive, populist message, the better off we’re going to be as Democrats,” said Senator Tom Harkin of Iowa…”

    http://www.nytimes.com/2013/07/25/us/politics/some-democrats-look-to-push-party-away-from-center.html

    Yeah this will work really well. Great idea: focus on where the money and votes are not.

    I have a better idea, invest in educating kids to be engineers and entrepreneurs. Then take credit for these E.E.E. policies and you’ll be the majority until we become trans-human spheres of mental energy gallivanting around the universe.

    • S Brennan says:

      “I have a better idea, invest in educating kids to be engineers and…”

      Guess again Venn, about 50% of US engineering grads never work in a STEM profession. Your advice is 60 years out of date, try to catch up will you? I’ve pointed this out to you before.

  10. VennData says:

    Reagan was a hero! He never raised taxes. Balanced the budget! Left the economy in great shape and won the Cold War!

    ​How to Make Memories of Things That Never Were

    http://www.nytimes.com/2013/07/26/science/false-memory-planted-in-a-mouse-brain-study-shows.html

  11. willid3 says:

    why is it only on wall street that behaving criminally isn’t really a detriment?
    http://pragcap.com/three-things-i-think-i-think-25

    and why do we always forgive them?

  12. VennData says:

    July 26th is Sysadmin Day. Are you promising to to torture yours?

    http://online.wsj.com/article/SB10001424127887324110404578629781061789620.html

  13. VennData says:

    Halliburton shares up despite destroying evidence

    http://www.usatoday.com/story/money/markets/2013/07/26/halliburton-shares-rise-despite-admitting-to-destroying-oil-spill-evidence/2589085/

    Cheney left quite a culture in place. How are all of Bush’s old businesses doing BTW?

    Heros. Glad their beliefs dominate GOP thinking and can still save us from the mire Obama has left to us..

    • bear_in_mind says:

      I think there’s enough evidence to conclude Mr. Weiner is pathological… possibly in several domains. How much of a narcissist must one be to continue putting their wife, child, extended family and friends through round after round of public shaming? Pitiful.

  14. bear_in_mind says:

    Hey Barry — enjoy your weekend fishing get-away! Here’s an article on-topic:

    Hopes for a Fish Revival as a Dam Is Demolished
    NY TIMES
    By Jess Bidgood
    http://www.nytimes.com/2013/07/26/us/hopes-for-a-fish-revival-as-a-dam-is-demolished.html