My morning reading:

• In Latest IPOs, Profits Aren’t the Point (WSJ)
• Living in a low return world (Abnormal Returns)
Today’s wacky Bloomberg Headlines:
…..-China Export Gains Understated on Fake-Data Distortions (Bloomberg)
…..-JPMorgan Clients Roll Bonds as Schwab Options Hedge Default (Bloomberg)
Nate Silver: The Six Big Takeaways From the Government Shutdown (Grantland)
• Squandering America’s Debt Advantage (WSJ) see also Why the level of government debt may not matter (FT Alphaville)
• The Anti-Yellen Campaigning Has Begun (Slate)
• Buried in Fine Print: $57B of FHA Loans Big Banks May Have to Eat (American Banker) see also Too Big to Fail banks still extend, pretend (Columbia Journalism Review)
• PolitiFact to launch PunditFact, checking pundits and media figures (Politifact)
• Why Republicans are losing the shutdown blame game (The Fix) see also GOP plummets, Obamacare soars in shutdown standoff (msnbc)
• Oceans of Life photography competition 2013 – in pictures (The Guardian)

What are you reading?

Natural disasters
Source: Economist

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.

13 Responses to “10 Friday AM Reads”

  1. willid3 says:

    is any one really surprised that equity returns aren’t what they used to be? when companies have trouble raising prices and sales aren’t growing much if at all, even if profits are doing well (mainly from cost cutting). but making profits based on cost cutting is a prescription for lower sales, mainly because cost cutting is so wide spread, that some one else is impacting your customers by their cost cutting, and since there really are only 2 real customers in our economy. consumers (which represent at least 70%) and the government. business almost always only buys what it needs to service its customers, and even if you just sell to other businesses, at some point you end up at the same place, the consumer being the customer. and consumers are about 99% some one’s employee..

  2. VennData says:

    GOP trying to put Tea Party back in the Kettle

    Republicans working out the terms of their surrender

    What a waste of time! Get your fat GOP asses in their and pass a budget, infrastructure rebuild, immigration, Defense re-authorizations and work to HELP Obamacare succeed and make the fixes and investments needed

  3. > Obamacare soars in shutdown standoff (msnbc)

    More on this.

    “Senior Republicans — who never wanted to be in this mess in the first place — are increasingly desperate to get out. On Thursday, House Republicans floated a six-week delay of the debt ceiling and Senate Republicans floated a proposal that would reopen the government and raise the debt ceiling in return for repeal of the medical-device tax and a handful of other minor concessions. . . .Democrats didn’t jump at either proposal. Their position is no policy negotiations until the government is reopened and the debt-ceiling is raised and they’re seeing nothing in the polls to change their mind.”

    Wonkbook: The shutdown is a total disaster for the GOP (WAPO)

  4. hue says:

    Low Info Nation: Survey Says Americans Clueless About Deficit, Debt, Budget (Biz Insider)

    Failure of Abenomics Could Affect Entire World (Minyanville)

    Why We Are Leaving Facebook (The Onion)

  5. VennData says:

    ​”…Establishment Republicans in Congress such as John McCain are openly scornful of him. Some Republican strategists say his crusade to destroy President Barack Obama’s healthcare law has been a political disaster. But at a gathering of conservatives and Tea Party faithful in Washington on Friday, Republican Senator Ted Cruz was unapologetic, defiant and received like a conquering hero…”–business.html

    He “conquered!” He conquered Obama, the feckless, shiftless, excuse-giver and weak academic Kenyan has been roundly defeated by the Cowboy-boot-wearin’ white man from Texas (via Canada.)


    Do you GOP voters have any idea what the post-Fairness Doctrine of your investments in sheer lunacy has wrought for you? The GOP Media Machine’s Waterloo. Enjoy oblivion.

  6. rd says:

    The financial sector is unhappy that many people still use cash, so a story appeared about how much cash costs consumers:

    We haven’t paid an ATM fee in years. We either get cash from one of our bank’s branches or from the many outlets that let you take cash out when you buy something using your debit card. I think the banks prefer it if we use credits cards though since the merchant transaction fees on credit cards are much higher than debit cards. There is also a higher probability that the credit card purchase will turn into a 20% APR source of income.

  7. rd says:

    Re: Living in a Low-Return World

    to a certain extent, I have given up trying to assume any particular return for my portfolio because we have had such a long period of time at interest rate and dividend levels that are largely outside of historical ranges.

    Instead, I am generally focusing on what the actual income are that come of the portfolio and try to estimate some conservative amount of real income growth I could expect in the long run through additional savings and growth of the investment itself.

    The actual income from my portfolio each year is much more stable than the face value of the portfolio. Interest payments are simply interest payments regardless of the face value of the bond. Diviends tend to be quite sticky. Diversification reduces the risk of major losses due to bankruptcies which would wipe out the income source at the same time it wipes out the capital value.

    I struggle with the concept that we have finally attained Fisher’s permanently high plateau of prices but the world’s central bankers, especially the Fed, and the TBTF financial sector cwertainly are working very hard to sustain it. So, we are budgetting for low returns in the future either through low income rates as a percentage of face value or a crashing stock and bond market that could severely cut face value but should leave income largely unimpacted. The real disaster for us would be for a period of major inflation accompanied by crashing markets over a period that has lasted as long as this high plateau of pricing.

  8. Jojo says:

    Americans are dumber than average at math, vocabulary, and technology
    By Roberto A. Ferdman — October 8, 2013

    • rd says:

      In case anybody wants to track what is going on in the real world of teaching.

      My wife teaches in a an urban elementary and middle school. They got their evaluation scores from last year this week. If you are “Exceptional” with a score over 90, then you can get a bonus of about 10% of your salary.

      It turned out that there were more than 10 points deducted from her total school because of the combination of the overall New York State and local school district scores. She had nearly perfect personal scores for the portion of the scoring based directly on her teaching but she was still several points shy of what it would take to get a bonus. So until New York State and her school district improve significantly, she cannot be rated as exceptional and will not be eligible for a bonus. I assume this is what they mean by bottom-up management.

      Apparently one of her co-workers had a lot of students last year that had numerous absences from school due to family dysfunction. Guess how his scores turned out…..

      The Special Education teachers got hammered. Their special ed students they worked with are expected to show the same improvements as regular students. Surprisingly they did not….

  9. VennData says:

    What do Ted Cruz and VennData have in common?

    Senator Ted Cruz scoffs at WSJ!

    Esteemed Senator of Texas, lead us out of the GOP. The GOP “leadership”​ is in the Oval Office performing unnatural acts on Obama! The REAL majority of the GOP and this country is behind you!

    Lead the GOP out of the wilderness! Lead us Moses, His good Shepard! Lead us to the Promise Land : an independent third party representing the majority of Americans!

  10. WickedGreen says:

    There are no “natural disasters”.

    Catastrophic flooding in Miami is merely Marjorie Stoneman Douglas’ River of Grass conducting business as usual just a few miles west of the concrete.

    What there is are economic and human disasters, all the more frequent as natural processes continue to happen as we smugly continue to build right in to their every path.

    Are your assets really liabilities?