My afternoon Canadian reading material:

• Three Big Money Mistakes You Could Be Making Right Now (WSJ)
• What Would You Do To Improve Business TV? (Points and Figures) see also CNBC’s ‘Money Honey’ explores her options (New York Post)
• An interview with… Jason Zweig on Personal Finance (Five Books)
• There Is No Liquidity Trap: Understanding 21st Century Monetary Policy (Peterson Institute for International Economics)
• Bad Real-Estate Deals Return to Haunt Detroit’s Pensions (Bloomberg) see also Is your town going to be the next big bankruptcy? (MarketWatch)
• How much has austerity cost (so far)? (Mainly Macro)
• Happy Birthday to Dodd-Frank, a Law That Isn’t Working (HuffPo) see also Glass-Steagall Is Necessary, but the Argument for It Isn’t (Moneybeat)
• Robin Thicke, a Romantic, Has a Naughty Hit (NYT)
• The pleasure of finding things out (Seeking Wisdom) see also How to Find Your Passion in Life (Fox)
• Must-see clip: Louis C.K. on his “seedy” role in “Blue Jasmine” (Salon)

What are you reading?


Gold Back Above 50-Day Moving Average  
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.

28 Responses to “10 Tuesday PM Reads”

  1. willid3 says:

    so just how well is that austerity thing working out for countries practicing it?>

    not so well, in some case its cost citizens (tax payers) almost $5400,
    and oddly enough the debt has climbed even higher .

    but then i suppose this is that take the bad medicine. eventually you will better. probably the same prescription that was given back in 1870s for the long depression. which only lasted 20 years.

    some how dont think people today are that patient. after all they weren’t that patient back in the 1930s. as many started looking to replace the economy. and government. which low and behold appeared to jump start solutions to problems. funny how that worked out

      • Mike in Nola says:

        iPad and Mac sales dropped. Various explanations put forth:

        “It’s running Windows 8. That’s the only explanation.”

        “IOS doesn’t have a start button.”

        Are we going to see multitudes of blog posts from fanbois writers about Apple being doomed?

      • neddyj says:

        i’d vote for ‘less bad’ over ‘very good’. not saying aapl is an expensive stock – it’s taken it’s lumps and is truly a value stock now, but shrinking margins are never ‘good’ are they? definitely some parts of their business continue to grow and are very profitable – that’s a great long term story. in the near term though – they made all those billions selling hardware, and that’s the part of the business with shrinking margins. it will get worse before it gets better, imho.

      • Mike in Nola says:

        Agree with you neddyj. Apple isn’t going away but I keep seeing reports about the iPhone losing its shine in other countries because the carriers don’t want to put up with Apple’s onerous agreements and they have plenty of other shiny devices to sell. There is also the phenomenon recently reported that average costs of smart phones have dropped from something like $450 to $375 in a relatively short time. Hard to maintain big margins in that kind of market where “everything eventually costs $5″ as one of the former heads of Intel said.

        There was the opposite narrative in the press with MSFT even though there are some analogous facts were there were good and bad parts. Actually, Windows is not MSFT’s big money maker any more. If memory serves, Servers, cloud computing and Office are the big cash cows and continue to grow, but all we hear about is MSFT is doomed because PC sales are declining.

  2. willid3 says:

    we knew banks were deep into commodities. what we didnt know was that they had control of the warehouses that hold the commodities. so they now can slow down delivery of commodities and even more money

  3. DeDude says:

    At first you may think that it is a scandal what this governor and AG did:

    But the real scandal is that they are actually right that this blatant corruption was not a crime according to the current laws.

    • theexpertisin says:

      The law is what a judge says it is.

      The political hacks sitting behind many a bench are doing the country no good.

  4. Hallsto says:

    Is Gagnon even making an argument? The theory behind a liquidity trap has nothing to do with how excess credit is generated, simply that diminishing real economic returns occur when forcibly stuffing credit into an economy which can’t absorb it.

  5. VennData says:

    Move, Bitch. feat. Uke.

    Long Live Rap.

  6. Sarge says:

    Reading David Stockman’s “The Great Deformation”.

  7. willid3 says:

    hm…would Apple join the race to the bottom?

    probably not.

    but I suppose they could create a low cost company, to create the cheap stuff

  8. OkieLawyer says:

    Michigan court clears way for Detroit bankruptcy to proceed

    This, of course, should not be a surprise. However, what does surprise me (more like shock and outrage), is that there are so many people advocating the municipal retirees and soon-to-be retirees starve by receiving nothing. The argument I have seen plastered like a PsyOps campaign on every story about Detroit is that its the worker’s own fault for having voted for Democrat [sic] leadership all these years. But the writer in the article from MarketWatch linked above entitled Panic about Detroit correctly states: “Should the tech industry go south — or, more likely, Far East — San Jose would be more like Detroit. And would that be the fault of pensioners and public employees who are mostly middle class and have to live in the area? No.

    In other words, cities like Detroit and San Jose — and your town — make choices based on the economic reality of the time. And the economy, as we all know, is a gamble. The nation is riddled with ghost towns from the Gold Rush just as it is with decaying urban centers in the Rust Belt.”

    So, let’s stop this nonsense talk about forcing municipal retirees to eat dirt. It is cruel and inhumane. The people who are advocating such a callous policy should be shamed. I am dumbfounded as to why we have not prepared for such a circumstance previously. Considering how mobile our economy necessarily is, it seems obvious that we should have had mandatory contributions (by employers, as well as employees) to retirement programs that are portable.

    And why have we not treated the misallocation of such contributions like a form of embezzlement? Once again, we have shifted the risk of loss onto the weakest party. Traditionally in the law, workers were protected from such losses (such as in a bankruptcy where wages were treated as a priority debt). Another way of looking at it is that, in the past, capital owners received higher compensation in exchange for bearing the risk of loss in a business. However, over the last 40 years or so, one of the principal changes in the business structure in the U,S. is the shifting of the risk to labor. We have gone too far, as the Detroit bankruptcy has shown.

    • Mike in Nola says:

      It doesn’t help the cause that most of the retirees are likely union members with unions being one of the most demonized institutions over the past couple decades because they were an impediment to the oligarchs.

      I know an extreme union hater who is otherwise pretty smart. After reading the article about GS et al manipulating commodities, he was outraged that the forklift driver was making so much.

      • BottomMiddleClass says:

        Most people don’t get pensions, and nobody is fighting for them to get a pension. I have a friend that joined IBM 3 Months after Big Blue switched from a traditional pension to a 401k plan. It doesn’t take much to get her going on about “why should she pay taxes for someone else’s pension when nobody cared about hers”.

        On the flip side, my friends with cushy state and federal jobs don’t give a damn about increasing minimum wage or improving the crappy 401k retirement plan system.

        If there is class warfare, this is a classic case of divide and conquer. Who cares what the financial industry is doing? The govmint is stealing all my money through taxes and trying to make me pay $0.05 more for a big mac!

  9. Conan says:

    If this isn’t a worst case scenario, then what is?

    REPORT: Larry Summers Is The Fed Frontrunner

    His record will go down in history as one of the worst! If he gets into the Fed, God help us all!

  10. chartist says:

    How would I fix financial TV? Well, in regards to CNBC, I’d fire Kudlow, Cramer and Kernan. Anyone who talked over someone else would be reprimanded live on TV. I would never invite Jack Welsh again, he’s such a dinosaur. I would find an Asian anchor to rival Scarlett Fu in beauty. I just love her. I would offer Eric Bolling whatever he wants to join CNBC. Bolling is the best trader to ever appear on financial TV, period.

  11. Mike in Nola says:

    First line of the latest Nigerian scam email:

    “I am Tim Cook, CEO of Apple Corporation. I have $146.6 billion in cash and need your help bringing it to the United States.”

  12. Mike in Nola says:

    Interesting rumor about Coca Cola I haven’t been able to confirm anywhere else. Heard through the grapevine that a big liquor retailer here got a call from Coca Cola saying they didn’t want Coke sold by any retailer whose sales were more than 50% liquor or tobacco and that the store would have to pull stock off the shelves. Anyone else hear this?

    If true, makes little sense in wake of declining earnings. So, people can pop into the classy local convenience store where they might get shot to buy a Coke but can’t get it at a store that often has big businessmen dropping thousands on a single order for a party?

    Maybe Chick Fil A has taken over Coca Cola.

  13. ReductiMat says:

    Hope you have a good time here in Vancouver this week.

    Are you in the Whiskey Bar “panel” again? Sounds like it could be a blast…