My morning reading:

• John Bogle Misses the Boat on Rebalancing (Servo Wealth Management)
• A Dozen Things I’ve Learned from Bill Ruane about Investing (25iq)
• Nobel Prize Shows Both Wisdom and Madness of Crowds (Bloomberg) see also Why do we *still* have a Nobel Prize in economics? (Crooked Timber)
• Absolutely everything you need to know about the debt ceiling (Wonkblog)
• The Fallacy of Success (Kottke)
• Is Unprecedented Inequality the Reason the Economy Can’t Recover? (The Reformed Broker) see also After the Jobs Disappear (NYT)
• Yergin: Why OPEC No Longer Calls the Shots (WSJ)
• For Many Hard-Liners, Debt Default Is the Goal (Economix) see also How safe is your money if the US defaults? (CNBC)
• The science interview: Jared Diamond (
• How to Opt Out of Google Using Your Name and Face in Ads (Lifehacker)

What are you reading?


Japanese Stocks Lure More Long-Term Investors
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.

15 Responses to “10 Tuesday AM Reads”

  1. willid3 says:

    i always wondered why those who want to ‘burn’ the house down think that what ever is rebuilt from the ashes will be like what they want? there is a very strong possibility that what they get isnt any thing like what they want, and they will get all of the blame for the debacle that they pushed for. consider during the last major debacle (the great depression) there was a real possibility that what was going to happen wasn’t any thing like what had gone before. but there was enough changes to the way the US operated to make it palatable for the majority. but since the 1980s we have been ‘reforming’ back to the way it was pre great depression. and back in the 1930s. people had a lot more patience with disasters foisted on them by the economic elite. but then the majority still worked or lived on farms so could live off what they raised. that had started changing back then. now that isnt an option any more. today may 1% if the US population is involved with farming,

    • theexpertisin says:

      There is a unique segment of the population that wish for the occasional destruction of property: ocean front vacation homes.

      Yes, there are exceptions, but many part-time homes on the beach are poorly constructed and over insured. Many in my corner of the world are pissed that a hurricane has not leveled their rather ramshackle cottages in years, so they could build another shack new and make a profit on the deal.

      Those of us with well built luxury homes a few short miles inland get stuck paying for wind (named storm) insurance that is outrageously priced to subsidize this situation and take the opposite view on named storms.

  2. rd says:

    As of 2010, Bogle was 81% bonds and 19% stocks for his portfolio mix:

    I don’t think he was too worried about stocks taking over his portfolio in the near-future.

    • rd says:

      BTW – while Bogle was Chairman of Vanguard, they introduced the Balanced Fund which provides his favorite default investment of 50/50 total stock market and bond index with automatic rebalancing and the LifeStrategy Fuind which provided for US stocks, international stocks, and bonds with automatic rebalancing at defined allocations. He provided some of the best automatic balancing tools that a small investor can use by creating these all-in-one low-cost index funds.

  3. Internet Tourettes says:

    Another reason to be worried…… Arthur Laffer is being mentioned again in policy circles:

    “Laffer is certainly experiencing a renaissance in his popularity,” said Jonathan Williams of the conservative American Legislative Exchange Council, who occasionally works with Laffer. “He’s just as effective today as he was 30 years ago.”

  4. willid3 says:

    you are not imagining things when you fly that the seats are getting closer and smaller

  5. Bob is still unemployed   says:

    A couple of articles attempting to explain why the federal government has so many problems with computer systems.

    Why US government IT fails so hard, so often (ars technica)

    “…Despite efforts to make government IT systems more modern and efficient, many agencies are stuck in a technology time warp that affects how projects like the healthcare exchange portal are built. Long procurement cycles for even minor government technology projects, the slow speed of approval to operate new technologies, and the vast installed base of systems that government IT managers have to deal with all contribute to the glacial adoption of new technology. With the faces at the top of agency IT organizations changing every few years, each bringing some marquee project to burnish their résumés, it can take a decade to effect changes that last.

    “That inertia shows on agency networks. The government lags far behind current technology outside the islands of modernization created by high-profile projects. In 2012, according to documents obtained by MuckRock, the Drug Enforcement Agency’s standard server platform was still Windows Server 2003…”

    How federal cronies built — and botched —> (infoworld)

    “The biggest problem with seems simple enough: It was built by people who are apparently far more familiar with government cronyism than they are with IT.

    “That’s one of the insights that can be gleaned from the work done by the Sunlight Foundation Reporting Group, a Washington, D.C.-based nonprofit that focuses on government transparency. …”

  6. DeDude says:

    Someone calculated the cost of current and previous GOP circus

    • RW says:

      Interesting. Even the minions at Pete Peterson Foundation must be getting the drift: At least they didn’t suppress the conclusions of the report they commissioned.

      On the other hand they didn’t mention the logical causal inference that the past few years of austerity (which Peterson favored0 and crisis-based fiscal policy-making began when the GOP took over the House. The combined effects of uncertainty in the bond market and cuts in discretionary spending due to those policies subtracted about 1% from GDP growth — around 3% off GDP at this point or $700 billion of wasted economic potential — and the unemployment rate would be about 1.4 points lower than it is now. (ht PK).

      Gotta hand it to the GOP (and Peterson et al): They sure know how to run a country …into the ground.

  7. Willy2 says:

    Not reading, but listening. Mrs. Gariss Browning is a good source for mid term weather predictions. I know on B. Ritholtz looks at the temperature charts and thinks Global Warming is inevitable. But Mother Nature throws A LOT OF curveballs at us. I am not so sure any more.
    E.g. Sunspots are down significantly in comparison with the previous sunspot cycle.

    (Access for subscribers only. $120 for 1 year or $15 for a month)

    • DeDude says:

      We have been collecting sunspot data for as long as we have been collecting global temperature data. As such we have very good data to calculate to what extend sunspots influence climate. This solid information has been incorporated into the climate models. The current variations in global temperatures cannot be explained by changes in sunspots.