My morning travelin’ reads:

• China Stocks World’s Worst Losing $748 Billion on Slump (Bloomberg) see also Misreading Chinese Rebalancing (Project Syndicate)
• The Pros and Cons of Stock Buybacks (WSJ)
• Blackstone, Deutsche Bank in Talks to Sell Bond Backed by Home Rentals (WSJ)
• Forward Earnings Flying High  (Dr. Ed’s Blog)
• Relax, We’re Not Detroit (The Daily Beast) see also After Detroit, muni bonds are safe, but no slam dunk (Reuters)
• American Dream Slipping as Homeownership at 18-Year Low (Bloomberg)
• In Europe, the case for… optimism? (FT Alphaville) see also A Marshall Plan for Greece (Reuters)
• 10 Signs That US Infrastructure Is A Disaster (Business Insider)
• Mobile Makes Facebook Just an App; That’s Great News (Stratechery)
• Apple’s iTunes Reaches One Billion Podcast Subscriptions (Small Business Trends)

What are you reading?

 

Blackstone/DB in Talks to Sell Bond Backed by Home Rentals
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.

14 Responses to “10 Mid-Week AM Reads”

  1. VennData says:

    Narrative Dysfunction

    MasterCard Profits Increase as Card Spending Climbs Revenues up 15%. Payments Processor’s Net Up 21% as Consumers Ramp Up Purchase

    http://online.wsj.com/article/SB10001424127887323997004578639643875372364.html

    What’s the over/under on the date WSJ editors going to go to the blow up their news room?

  2. Bob is still unemployed   says:

    The Council On State Taxation released theireleventh annual study of state and local business taxes PDF here.

    I was surprised to see my home state, Connecticut, listed as having lower total effective business tax rate than Texas.

    • Lyle says:

      Since the total taxes by state include severance taxes, Tx would have a lower rate now that the Eagle Ford and Permian Basin are producing so much oil. The production in Tx has increased, and therefore the proceeds from the severance tax have increased. Historically up to the 1980s this was how Tx kept other taxes low.

      • willid3 says:

        that is why we dont have an income tax, and can get away with it. but if you look at all taxes and fees, we aren’t really at the bottom, more like the middle

  3. Bridget says:

    If Blackstone and Deutsche Bank can sell that dog, Detroit needs to hire them to package all of its vacant properties and turn the deal over to its creditors as payment in full.

  4. Low Budget Dave says:

    There are many interesting things about the Detroit situation. One of the more strange observations is that ratings agencies are suddenly downgrading the debt of other cities. Did they just now notice that the debt was unsecured?

    I am confused as to what changed in the last week that made other (non-Detroit) bonds a worse investmet. If I get a bad bottle of Sprite, I don’t stop drinking Pepsi.

  5. theexpertisin says:

    A bond to be backed by single family home rentals?

    The prospectus should have FIASCO stamped on page one.

    • rd says:

      The Blackstone IPO in 2007, along with Sam Zell selling everything, was one of the harbingers of the top before the financial crisis.

      Now Blackstone has bought up these houses and is willing to give us the benefit of the profits in exchange for an itty-bitty fee. Another market top coming?

  6. idaman says:

    w/ regards to the pros and cons of buybacks -

    if anyone knows who publishes a list of *current* buyback programs, please post. (last years programs do me no good)

    I could then sort based on back-of-the-envelop intrinsic value in order to generate a buy idea list (I’d be happy to post the results)

  7. rj chicago says:

    Excuse me while I wipe the tears from my eyes – LMFAO!!!

  8. S Brennan says:

    I reading this:

    http://www.forbes.com/sites/clareoconnor/2013/07/30/how-much-would-a-big-mac-cost-if-mcdonalds-workers-were-paid-15-per-hour/

    I was struck on how more efficient our economy would be if Nixon’s proposal for a negative income tax for working adults had been enacted. A teenager working to save for his/her first car would receive whatever the local minimum wage was, while an older worker working beside him who had lost his manufacturing job due to tax incentives created by the collusion between Wall St & DC, would receive Minimum plus xx% of median income. Corporations would have no incentive to discriminate based on cost savings.

    Now if you made Medicare available for all, [as bare bones health insurance], you’d have a level playing field. Yes, it’s communistic, but only for the bottom 2 quintiles, hardly something people would willing take advantage of.

    • VennData says:

      Zillow’s got my one house at 30% more than it’s worth, the other a quarter, a QUARTER!

      Ignore EVERYTHING they say.

  9. Gnatman says:

    John Rubino writes about the failure of prosecution, and maybe a turn around. “…these things were (and are) rampant, and that the perps are still rich and free testifies to the completeness with which Washington is now owned by the big banks.”

    http://www.safehaven.com/article/30657/did-wall-street-miss-a-bribe-payment