My morning reads:

• Successful Market Timing is an Urban Legend (Servo Wealth Managment) see also Forecasters are bad at forecasting, study finds (Wonkblog)
• Hedge funds: nice backlash, but we still growin’ (FT Alphaville)
• Should Home Sellers Overprice or Underprice Real-Estate Listings? (WSJ)
• Milton Friedman, Unperson (The Conscience of a Liberal)
• Getting Big Banks Out of the Commodities Business (Economix)
• 3 Economic Stories That Get Blown Out of Proportion (Motley Fool)
• The truth about the part-time jobs explosion (MarketWatch)
• Brooks on the Nudge Debate: “Libertarian Paternalism.” (NYT)
• China’s Gleaming Ghost Cities Draw Neither Jobs Nor People (WSJ)
• New Mind-Warping Animated GIF Art from Paolo Čeric (This is Colossal)

What are you reading?


Sector Performance on Earnings
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.

14 Responses to “10 Friday AM Reads”

  1. Petey Wheatstraw says:

    New psychoanalytic/economic model explains the science behind understanding the future of the markets:

    • beaufou says:

      That was interesting Petey. I did notice that squinty eyes were the mark of a positively deceitful person.

  2. swag says:

    A devastating little Werner Herzog documentary on the consequences of texting and drive. Explanation and YouTube clip at the link.

    • S Brennan says:

      What if we established a national victims fund to payout all damages related to texting-driving paid for by a federal fee? The fee per user is:

      [funds required to pay for all damages yearly] / [each letter sent by text yearly] = [Fee per letter of text sent added to each monthly bill]

      It wouldn’t stop the insanity, but it would at least help pay for some of the damage this misapplication of technology produces, by those who use it.

  3. VennData says:

    Brooks unleashes this Yogi-Bearism as his conclusion…

    “…I’d say the anti-paternalists win the debate in theory but the libertarian paternalists win it empirically…”

    I don’t think you can win a debate theoretically if you’ve lost it empirically. But that’s what happened if you’re striving to be the resident eight winger but are constantly coming up against the data.

    If you look at the libertarian “you can manage your own money” hands off policy we’ve taken, well… Scoreboard.

  4. rd says:

    An interesting article here about the utter incompetence in Detroit’s mismanagement over the years:

    I have a spouse who is a teacher in an urban school district. The stories she comes home with about the utter mismanagement of it is appalling to somebody who has worked his entire year in the private sector. As far as I can tell, much of government today is operated with the same level of efficiency and quality as the steel industry and the Big Three auto makers in the early 80s.

    We appear to have elected governments across this country who are determined to demonstrate that government cannot be operated efficiently and effectively on a day-to-day basis. This seems to be universal, encompassing both political parties. The Democrat would like govenrment to operate well, but don’t seem to be able to figure out how to do it while the GOP simply appears to believe that government is inherently inefficient and ineffective and cynically seek to prove that every day. Both sides appear to sneak their hand into the till on a regular basis as well.

    We need a concerted country-wide effort to figure out how to make government efficient and effective so that our tax dollars can be put to their highest use. I think we can have much better level of service and outcomes at the same or lower rate fo spending.

    • DeDude says:

      You get what you pay for. If you tell people that as a private sector top management or CEO person you will be paid in excess of $500K, but as a public top management or CEO with much larger scrutiny and responsibility you will not even break $200K, then a lot of the most competent people will chose the private sector. Yet the public debate is always about how excessive compensation for public employees is, not how the low compensation is costing huge sums by reducing the pool of talent that manage the publics affairs.

  5. VennData says:

    Why You Shouldn’t Trust Internet Comments't-trust-internet-comments

    This is complete balderdash – admittedly a dash of inherent Liar’s paradox here – since I base the majority of my purchase and investment decisions on comments on this (and a few few life-minded blogs, like Zero Hedge, etc.) and am doing quite well, thank you.

    If you can’t trust internet comments, then who can you trust? Certainly not the OPs; they’re just the downstream media from the upstream media pissing in the river.

    I have your best interest at heart.

  6. Livermore Shimervore says:

    No Tesla selling 5K cars in a single quarter story? That’s on pace to match Porsche North American sales for all of 2009.

  7. S Brennan says:

    On Leno, Obama glibly dissembled about his crimes against the constitution. While Obama’s supporters cheered the artifice, an American stood up and did the right thing.

    “I have been forced to make a difficult decision: to become complicit in crimes against the American people or walk away from nearly ten years of hard work by shutting down Lavabit.” He chose the latter. Lavabit had been told by the government to turn over all user data, and a gag order prevented the firm from informing customers.

    In every culture in decline
    The watchful ones among the slaves
    Know all that is genuine will be
    Scorned and conned and cast away

    - Joni Mitchell

  8. VennData says:

    Wholesale Inventories in U.S. Unexpectedly Fall for Third Month

    ​Instead using their opinion page at the WSJ to parrot back the GOP-spin (aka fact-avoiding) ​daily talking points:

    …generated from the Koch bothers funded machine tucked away in DC , why doesn’t the Wall Street Journal delve deeply into stuff like this?

    ​IMPORTANT: The GOP meme, “Why isn’t the mainstream media talking about this?!” is in fact asking why isn’t the media parroting back the GOP-spin machine version of things.​

    P.S. Once you get to that level of understanding, everything will become a lot clearer, but you’re going to be less emotional, which is probably a good thing for you, don’t you think?

    • DeDude says:

      “Why isn’t the mainstream media talking about this?!”

      Surprisingly often the answer to that question is: “Because it is a big stinkin’ pile of BS”

  9. WFTA says: is a really neat website. Thanks for sharing and have a swell weekend.

  10. chuck215 says:

    Re: the market timing article.

    We’ve just finished a 30-year run for bonds, as interest rates declined from the teens in the 1980′s to the very low recent levels. Such a period will not be repeated in our lifetimes.

    The stock crash of 2008-2009 was also a once in a lifetime experience.

    So, I don’t automatically believe that the balanced stock-bond portfolio strategy in the 2008 to 2013 period indicates that this same balancing strategy will be the best strategy in the future.

    Going forward, it seems feasible that a 100% stock portfolio (e.g., an S&P 500 index) is the best long-term strategy? This presumes that one has the patience to not panic and sell during the inevitable period when stocks drop 30%.