My morning reads:

• The Smartest Man is Bullish on Europe (Blackstone)
• The Origin of ‘The World’s Dumbest Idea’: Milton Friedman (Forbes)
• Analysts vs. Strategists: Who’s Right on Stocks? (Moneybeat)
• Shadow Banking Threatens China’s Economy—but What Is It, Exactly? (Atlantic) see also The Chinese Financial System: An Introduction and Overview (Brookings)
• Timing Method Performance Over Ten Decades (Mututal Fund Observer)
• A Bitcomedy (FT Alphaville) see also Bitcoin: how I made a virtual fortune (theguardian)
• 2013 is halfway over! This is how the economy is doing, in 11 charts. (Wonkblog)• How Government Can Actually Play Moneyball (New Republic) see also The Market Starts Taking Its Medicine (Barron’s)
• Playing profit with the stock market (FT Alphaville)
Think UBS is getting a little paranoid? UBS Starts Gold-Vault Service in Singapore Amid Bullion Rout (Bloomberg) see also Gold Traders Seeking Floor After $66 Billion Rout (Bloomberg)
• Likonomics: what’s not to like (Economist)

What are you reading?



At Midyear, Market Is More Jittery, Less Optimistic
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.

26 Responses to “10 Tuesday AM Reads”

  1. swag says:

    Lou Reed reviews Kanye West’s “Yeezus” for The Talkhouse.

  2. RW says:

    Sequester Watch, #11

    This week’s SW begins with an interesting and well-researched article in today’s WaPo on how sequestration hasn’t been nearly as bad as some people expected.

    …it is a mistake for the WaPo to go from “dire predictions haven’t materialized” which is true, to “the sequester isn’t so bad,” which is surely not the case for many affected people.

    Let’s not lose sight of the larger picture here. The cuts that are being made, …are serious for some families’ budgets and for the broader economy. Moreover, as I and others have stressed, the discretionary, or agency, accounts are not where the real spending pressures are coming from…that would be health care costs.

    And let’s not lose sight of the smaller picture either: the micro impacts on the families that lose a Head Start slot or a meal for a shut-in elderly person. …They are harsh, unnecessary, and ill-advised—much more a symptom of congressional gridlock then fiscal rectitude.

  3. PeterR says:

    Yahoo Finance front page quotes you as saying gold “will bounce above 1400,” although after the jump to the article, the headline is softer.

    Talk about sensationalistic headlines . . .

  4. Internet Tourettes says:

    1 in 10 Canada Families Highly in Debt…..

    “Canada’s housing boom created a nation where more than one in 10 families are what the central bank calls “highly indebted,” ”
    “Looking at these figures one would think Canadians are accumulating debt at an alarming rate,” said Michael Hsu, vice president at Ipsos in Toronto. Still, he said “most of the debt Canadians are accumulating is going into real estate and right now the real estate market is holding up quite nicely.”

  5. willid3 says:

    more on last week ‘big’ SCOTUS decision

    and why it that equal protection, doesnt seem to be national in scope?

  6. hue says:

    Seinfeld Intends To Die Standing Up (NYTimes)

    Former Nortel Exec Warns Against Working With Huawei (CBC News)

    The Darko Ages: How Magical Thinking & Racism Produced The NBA’s Most Notorious Draft Bust (Slate) Joe Dumars hasn’t recovered

  7. willid3 says:

    why do corporations complain about a tax rate they dont pay? while the official rate maybe 35%, what they actually pay (if they do at all) is more like 11%. and even adding in taxes paid in other countries, doesnt even get them to much more than 17%. so i guess they just dont like paying taxes at all, even when they get paid by the government.

    which fits. companies are only in business for one thing a profit. any thing that detracts from that, they want to reduce.

    except that it seems like corporate America seems unable to control one expense. CEO pay, seems to have grown so much that, and seems uncontrollable

    and CEO’s then gripe about employees pay being unaffordable?????? and about not being able to raise prices? or having trouble with sales? wonder why that would be? .

  8. willid3 says:

    maybe the banks will finally get their comeuppance? but it took a EU regulator to do it? and over monopolies not finance?

    seems like, if the fines are based on the values of CDS involved, they could be looking at trillions of dollars of fines.

  9. rd says:

    An interesting article here on municipalities looking to use Obamacare health insurance exchanges for retiree health care:

    The US is slowly starting to look like Canada but without the efficiency and low costs for health care.

    BTW – a Canadican comic jokes “Canadians are unarmed Americans with health care“.

  10. romerjt says:

    concerning “the dumbest idea and MF . . . . “Nevertheless, an iron rule exists in genetic social evolution. It is that selfish individuals beat altruistic individuals, while groups of altruists beat groups of selfish individuals. The victory can never be complete; the balance of selection pressures cannot move to either extreme. If individual selection were to dominate, societies would dissolve. (think Dick Chaney) If group selection were to dominate, human groups would come to resemble ant colonies.” E.O. Wilson in “The Social Conquest of Earth”

    • That squishy theory of yours is actually false.

      Humans specifically (and primates in general) have advanced through cooperation. And punishment for perceived selfishness (theft, battery, rape, etc.) in both the animal kingdom and human society can be severe.

      I disagree with Wilson’s unsubstantiated theories and myths . . .

      • romerjt says:

        “The dilemma of good and evil was created by multilevel selection, in which individual selection and group selection act together on the same individual but largely in opposition to each other. Individual selection is the result of competition for survival and reproduction among members of the same group. It shapes instincts in each member that are fundamentally selfish with reference to other members. In contrast, group selection consists of competition between societies, through both direct conflict and differential competence in exploiting the environment.”

        I think his point is that individual competition within the group is natural and beneficial but when it rises to a level that threatens the groups ability with other groups it receives the punishment and sanctions you refer to. We naturally want to be part of a group but we also compete on many levels within the group. Squishy, really?

      • Arequipa01 says:

        Thank you, Mr. Ritholtz.

      • S Brennan says:

        In absolute agreement…societies rise meteorically when cooperation and it’s hand maiden, reward sharing occur. Societies fall when the mendacious have their paeans to greed accepted as truth. Milton Friedman take a bow, you, as much as anybody, are responsible for the decline of the American Empire, but I guess you must like it hot…

      • romerjt says:

        I really don’t think its that simple and for an everyday illustration of this competition / selfishness working with altruism and cooperation look no further than the professional sports teams where players compete for jobs / starting and to be the player who most contributes to the teams victory. But when a player becomes too selfish and disregards the team he /she is severely ostracized and often traded.

    • Richard W. Kline says:

      If one understands that Milton Friedman was a propagandist for an oligarchy of wealth, everything he ever said or did makes perfect sense. If one thinks him a serious thinker, then that one’s a mark.

      And E. O. Wilson, the intellectual vacuity of his body of verbiage is the only characteristic in it which can accurately be described as ‘stupendous.’ I just don’t get how the man can keep getting his name in print—until it becomes clear that that, and that alone, is his real purpose, which I doubt he even confesses to himself in the dark of the night locked in his own basement. There is absolutely no support or even traction for any fabulation the man has ever evanesced, and his ‘audience’ consists entirely on _non-prosessionals_ relative to his field of training. He shows no engagement whatsover with actual evidence from social anthropology or social psychology, the fields into which he intrudes his completely ungrounded fantasies with regularity. A waste of time is a phrase too kind . . . .

  11. markwyand says:

    Barry – Curious if you had further thoughts on the Timing Method article? Does it hold water? It piqued my interest as it uses 5 year rolling returns which are relateable to the average human investor – rather than simply looking at long-term returns..MCW

  12. mlantz says:

    From the Blackstone piece:
    ” In foreign policy he has to be willing to use American power more forcefully. Once he starts something he has to finish it. He didn’t do that in Iraq and Afghanistan and that is why he failed.”

    So Obama invaded Iraq and Afghanistan? Guess I missed that day.

    • PeterR says:

      mlantz, you missed the intended meaning IMO. The “failure” intended to be conveyed by the author was that Obama did not use American power more forcefully (regardless of who started the wars).

      The entire piece is worth a careful read for its vision and clarity of thought.