My morning reads:

• Praying for an Immaculate Rotation from Bonds to Stocks (Barron’s) see also Short Looks Beautiful to Bond Investors (WSJ)
• What Bear Market? Japan Stocks Are Surging Again After Big Fall (Moneybeat)
• Why We Underestimate Risk by Omitting Time as a Factor (Bloomberg) see also Correlation and Causation (Seeking Wisdom)
• The need for less speed (Tim Harford)
• Rock Legends Guides to Eurocrisis (ECR Research)
• A Portfolio That’s as Simple as One, Two, Three (WSJ)
• Do the inflationistas really believe what they say? (Noahpinion)
• The Best $500 Billion the United States Has Ever Spent (Motley Fool/NBC) see also Will Clinton Be Our Eisenhower? (Economic Principals)
• I Don’t Care Whether You Trust me; I Won’t Add You to my LinkedIn Network (LinkedIn)
• Yes, Kickstarter raises more money for artists than the NEA. Here’s why that’s not really surprising (Wonkblog)

What are you reading?

 

 

2013′s Top Stocks…So Far
Chart
Source: Bespoke

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.

13 Responses to “10 Monday AM Reads”

  1. rd says:

    This will be an interesting case for S&P:

    http://blogs.marketwatch.com/capitolreport/2013/07/08/sp-to-court-reasonable-investors-wouldnt-rely-on-our-puffery/

    I see one major flaw in their argument; there are a lot of regulatory and accounting requirements that force many institutions to hold bonds rated “investment grade” by S&P, Fitch, and/or Moodys. Theoretically, the purpose of these rating agencies is to provide independent reliable ratings and eliminate the need for vast internal analysis costs for those instituitions. That type of oligopoly rating power also comes with a high degree of responsibility.

    • Mike in Nola says:

      One thing that kept me from being a rich lawyer; I never could make ridiculous arguments like I believed them. The handicap of honesty, which doesn’t seem to afflict most of the financial and legal classes.

    • willid3 says:

      you would think that some one (the government maybe) would rate the agencies. and if they dont make the grade for making ratings that actually are worth having, companies cant use them to show that they are investment grade.

      but the agencies claims they are just putting out an opinion.

      so lets rate their opinions
      if they dont produce ones worth having they dont get considered worth while any more

  2. VennData says:

    Subglacial Lake Vostok (Antarctica) Accretion Ice Contains a Diverse Set of Sequences

    http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0067221

    Oh and go ahead and align those four circular ankhs on that massive cuniform-covered obelisk.

  3. Mike in Nola says:

    Looks like Banks and PE are trying to pump housing even further despite the rise in mortgage rates, all the while making houses less affordable for the middle class. All courtesy of cheap money and lax regulation from you-know-who.

    As others have related, banks have been holding REO’s off the market to keep supplies tight and help drive prices up. NC today had a post today about the new bank tactic of bidding up their own foreclosures in the hope of flipping their own properties down the road.
    http://www.nakedcapitalism.com/2013/07/banks-now-outbidding-private-equity-funds-at-foreclosures-either-believing-they-can-beat-them-at-the-pump-and-dump-game-or-deferring-losses.html

    Only in America can bailed out banks get away with such things.

    On top of that, Blackstone, who has sunk a ton of money into foreclosures-to-rent and, as a by product run up prices, is now going to start lending to smaller buyers. Perfect fix. They can further drive up prices and may now be able to flip their own houses to the stupid latecomers. Likely they will package the mortgages and sell them off before the inevitable crash. Or, based on history, they can just hold them and sell them to the Federal reserve at face value when they turn sour as happened last time.
    http://www.bloomberg.com/news/2013-07-08/blackstone-raises-5-billion-rental-bet-with-lending-arm.html

  4. swag says:

    So, is S&P’s defense really “no one should have believed our s**t?”

    http://www.bloomberg.com/news/2013-07-08/s-p-to-argue-puffery-defense-in-first-courtroom-test.html

    • Mike in Nola says:

      Brings back memories. I remember in one of my law school courses 30+ years ago one of the studied cases was about whether others should be allowed to sue if they lost money by taking your “mere puffery” seriously.

      I guess they are having to dig deep to come up with arguments, but I would not be surprised if they got away with it in our new Guilded Age where you get to keep whatever you can steal.

  5. Moss says:

    One of the most outrageous defenses I have ever seen. America the land of lawyers not laws.

    http://www.bloomberg.com/news/2013-07-08/s-p-to-argue-puffery-defense-in-first-courtroom-test.html

    • Mike in Nola says:

      It’s not really the land of lawyers. It’s land of the elites who make the laws to favor themselves and then hire lawyers to help them out.

  6. Dead Among Those Interviewed in Faulty Background Checks

    “Domico is among 20 investigators who have pleaded guilty or have been convicted of falsifying such reports since 2006. Half of them worked for companies such as Altegrity Inc., which performed a background check on national-security contractor Edward Snowden. The cases may represent a fraction of the fabrications in a government vetting process with little oversight, according to lawmakers and U.S. watchdog officials.”

    http://goo.gl/o1oyl

  7. rd says:

    An interesting little article here on transporting crude oil by rail:

    http://blogs.marketwatch.com/energy-ticker/2013/07/08/deadly-quebec-derailment-puts-the-spotlight-on-crude-by-rail/

    It appears that the train carrying crude that blew up in Quebec was carrying both Bakken Shale oil from North Dakota and oil from Alberta.

  8. VennData says:

    Voting has consequences

    http://www.nytimes.com/2013/07/06/us/politics/after-Supreme-Court-ruling-states-rush-to-enact-voting-laws.html

    Sometimes it’s less voting. You go GOP hardcore Constitution lovers. You’re real Americans.

  9. rd says:

    It appears that background checkers don’t fare well when their work is checked:

    http://www.bloomberg.com/news/2013-07-08/dead-among-those-interviewed-in-faulty-background-checks.html

    Another service that should be privatized so that it can perform better…..oh wait, I think it was.