My afternoon reads:

• Facebook Strikes Back (TRB) see also Facebook Is Erasing Doubts on Mobile (NYT)
• The Complete History of the SPY (ETF Database)
• “Second Recovery” Unfolding in US (Dr.Ed’s Blog) but see 3 Signs the Market Is Near a Top (Barron’s)
Jean-Louis Gassée imagines a letter from Ballmer: The Rebirth of Windows Mobile (Monday Note)
• Wait, Larry Summers is Now the Favorite for the Fed? Can we at least talk it over first? (New Republic) see also No More Second Chances for Larry Summers (Nation)
• China as a monetary superpower – the Sino-monetary transmission mechanism (The Market Monetarist)
• Legacy of Long-Run Unemployment (Conversable Economist) see also Why Tight U.S. Labor Markets Are Here to Stay (Bloomberg)
• 16 Words That Are Much Older Than They Seem (Mental Floss)
• You Can Live Forever (Daily Beast) see also Study: 23 and 69 Are the Happiest Ages (Time)
• Consumer Reports gives Chevy Impala rave reviews (CNNMoney)

What are you reading?


Post financial crisis major US stock market index retracement
Source: Chart of the Day

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.

24 Responses to “10 Thursday PM Reads”

  1. DeDude says:

    So we got a GOP student loan bill passed

    “Over 10 years, the interest rates the government collects on student loans is expected to raise $715 million. It will go toward reducing deficits”

    “undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury”

    Can someone please explain to me the GOP rationale for insisting that government makes a profit on these loans. Adding 2.05 -3.6% above the rate of the 10-year treasury is in no way justifiable unless you are Wall Street bankster who’s purpose is to suck money out of children and widows. Are they trying to ensure that education is so expensive that it is reserved for children of the priviledged class?

    • Init4good says:

      …the GOP rationale for insisting that government makes a profit on these loans…

      Good point. Maybe it’s to cover the losses resulting from loans to those who can’t/don’t repay them?

      That would make too much sense…

      • DeDude says:

        Read again. The 715 million is after you cover losses from non-payment. This does not even include the huge pure guaranteed profits that is given to banks for the “administrative service” of their computer systems. This is pure government profit that “will go towards reducing deficits”.

        Actual losses from loan default is a legitimate cost to calculate into the rates. However, they do not justify jacking the rates up another 2.06 – 3.6%.

      • bear_in_mind says:

        @DeDude. Agree 100 percent. I’m sure most readers know this, but probably the biggest gift to financial institutions is the permanent lock-in. One cannot discharge federal student loans (not sure about private student loans) in bankruptcy. So you can check-out of making repayments for a time, but you can never leave the Hotel Indebt-ifornia.

  2. willid3 says:

    EU southern countries decide to band together?

    could be.

    more on the lowering of incomes in the US not really sure how much to trust the data though

  3. willid3 says:

    return of the bee crash?

    seems that we humans are the source of the problem of the collapse of the bees.

  4. willid3 says:

    oh no. ceos cant plan for 100 years.
    hey wait a minute, aren’t we really having trouble with them planning for more than a few months anyway?
    good thing we dont them much right?
    oh wait, we pay them a lot, in hundreds times what we pay others.

  5. willid3 says:

    has most of the job growth been in low wage incomes jobs?

    seems like i recall this was also true back in 2005-2006.

    • bear_in_mind says:

      MUCH more so in the 2008-2013 era. Either way, the middle class is being swamped by marginally-employed persons who long for nothing more than full-time employment (FTE).

  6. Init4good says:

    Robert Samuelson Is One Third Right
    Thursday, 25 July 2013 06:59

    Robert Samuelson says that we have a weak recovery, that employers are shifting from full time to part-time employment, and the cause is the Affordable Care Act (ACA). This gives him a batting average of 333, pretty good for the Post.

    The first part is undeniably true. This recovery is very weak compared to prior post-war recoveries. Of course that is not surprising to fans of economics and arithmetic. This recession was brought on by the collapse of a housing bubble, not the Fed raising interest rates to slow inflation. That meant that a recovery would be more difficult.

    In a normal recession, high interest rates discourage car buying and home building and buying. This means when the Fed lowers interest rates to boost the economy, there is a large amount of pent-up demand in these sectors which provides a powerful boost the recovery.

    That was not the case with this downturn as some of us have been saying for the last 5 years (here, here, and here). As they say in Washington, if you repeat something long enough, and it happens to be true, the Washington Post will eventually notice. So yes, Robert Samuelson is right, this is a weak recovery and it is easy to explain by an inadequate stimulus. There is simply no source of demand in the economy that is capable of replacing the more than $1 trillion in annual demand (construction and consumption) that was being generated by the housing bubble.

  7. overanout says:

    2013 Chevrolet Impala 3.6 L, 6 cyl, Automatic 6-spd, Regular Gasoline or E85
    2013 Chevrolet Impala Gas City 18 Highway 30 combined 22

    E85 13 City Highway 22 combined 16

    Driving only 15K per year with a combined 22 MPG the impala uses $2727.00 or almost $226.00 per month in Calif at $4 a gal.. Compared to a new Prius with a combined 50 mpg with the same MRSP as the impala but only using $100 per month in fuel. American auto’s may be making a comeback but low MPG continues to be a negative.

    • bear_in_mind says:

      It’s ridiculous that fuel efficiency still lags by so much in the U.S. The trend is moving in the right direction, but having wrenched on number of engines over the years, I’ve found too many engines operating under their optimal volumetric efficiency (VE) with the factory settings.

      Granted, we do ask a lot of internal combustion engines (smooth, low idle to high horsepower output up to 7,000+ RPM) but we could better tailor performance to the typical use of a vehicle with computer performance profiles.

      Also, most modern engines operating on cruise control will see a 20+ percent increase in highway mileage because the computer changes air/fuel ratio hundreds of times a second, far more efficiently modifying VE than a human can with their right foot.

  8. willid3 says:

    could climate change actually be a huge cost factor to the worlds economy? costing as much as the worlds GDP?

  9. RW says:

    Lest we forget.

    CBO: Sequester cuts would cost up to 1.6M jobs through 2014

    The nonpartisan Congressional Budget Office on Thursday estimated that keeping the spending cuts from sequestration in place through fiscal 2014 would cost up to 1.6 million jobs.

    Canceling the cuts, on the other hand, would yield between 300,000 to 1.6 million new jobs, with the most likely outcome being the addition of 900,000, the CBO said. …

  10. chartist says:

    That Impala is a nice looking car. My best car purchase has been my 2005 Mercedes E320 CDI….My diesel gets 37 mpg on the highway, even more in hot weather for some reason. The MB BlueTec suffers from lower mpg. Consequently the 2005 and 2006 E320s are high demand used cars.

    • bear_in_mind says:

      I think the next-gen diesels are the de facto bridge from gasoline E85 engines to electric and/or fuel cell engines. You might try using cruise control on the highway for another 10-15 percent bump in mileage efficiency.

  11. catman says:

    I am a big fan of Barry’s reality based approach to the markets. I enjoyed the Charlie Rose/Grantham interview, although Charlie Rose consistently strikes a few wrong notes. Grantham’s historical perspective and mathematical bias are devastatingly refreshing and well expressed, but something about Wednesday’s market action bothered me, despite the fact that market psychology as I see it has not quite gotten out of hand. In the spirit of Jimmy Balodimas I just keep taking money off the table.

    • bear_in_mind says:

      Charlie Rose’s best interviews are when he shuts up and LISTENS to his guests, versus talking over everyone vis-a-via CNBC. Unfortunately, Charlie has become a creature of big media meme suck-ups.

  12. Mike in Nola says:

    Gassee: We always get the unbiased truth

    I guess we had to settle for that since Steve is no longer around. Perhaps a séance.

    • bear_in_mind says:

      Right or wrong, Gassee was (and remains) one of the few people to stand their ground against Lord Jobs. I think they agreed more than disagreed. But your point is… what? Trying to add some Kardashian, LiLo or Amanda Bynes flavor to TBP’s feed?!

  13. Mike in Nola says:

    Something a little less biased and a lot more interesting is a little piece on what Hayek and Keynes really said and what they thought of each other:

    These little talks are usually by an engineering or physical science academic so the subject was a little surprising and the talk was enlightening.