My early morning reads, hand selected from our fine cellar of thought provoking concepts:

• ​The Desert Island Portfolio (Research Affiliates)
• Age of Bullshit Investments Is Back! (NY Mag) see also How to Make Money for Nothing Like Wall St (The Atlantic)
• Process and Performance (Above the Market)
• What Happened to the Part-Time Employment Story? (A Dash of Insight)
• China: Superpower or Superbust? (National Interest)
• Eric Holder Finally Gets Tough on Banks (Bloomberg)
• 18 Signs Economists Haven’t the Foggiest (Unlearning Economics)
• Missing “Why” of iPad (Stratēchery) see also iPads, price + self-selection (Benedict Evans)
• 932-page tome on Beatles is 1st of 3 volumes aiming to be a definitive history of Fab Four (WSJ)
• This is what I want for my birthday next year: Montana Dueling Dinosaurs Fossils (Bonhams)

What are you reading?


Forward Guidance 

Source: Bespoke Invest

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.

17 Responses to “10 Friday AM Reads”

  1. rd says:

    Ted Cruz gets his health insurance through his wife’s Goldman Sachs plan “at no cost to the govenrment”.

    It appears that Ted Cruz is unaware of the deductibility of health insurance premiums on corporate taxes or the fact that Goldman Sachs rushed to become a “bank holding company” in 2008 so that it could suck on the Federal Reserves and US govenment’s teats for the past four years. The entire Federal government has been structured and focused to ensure that financial firms remain highly profitable during a period when many other companies and people have suffered signficiantly.

    • Why am I not surprised ?

    • RW says:

      Senator Cruz’s Health Care Plan Costs Taxpayers $8,000 a Year

      Assuming the Cruz’s are in the highest tax bracket, the tax deduction for Senator Cruz’s health care plan would be more than $8,000 a year. This is far larger than the subsidy that most people would receive in the exchanges.

    • > It appears that Ted Cruz is unaware of the deductibility of health insurance premiums on corporate taxes

      There are several issues here. GS can deduct the cost of its share of the premium, which in this case may well be the entire 20K for the plan. Cruz and family can deduct their portion of the premium – which may well be zero – plus out-of-pocket costs (eg, deductible, co-pays, co-insurance, etc), for any expenses that exceed 10% of their 2013 AGI. That’s one cost. Another is that Goldman’s share of the premium for their plan is excluded from the family’s gross income, meaning the family doesn’t pay taxes on it. This type of tax expenditure is the single largest tax cost to the government, above the mortgage deduction.

      People who buy their own insurance don’t receive this tax benefit. And a lot those people who rail against Obamacare are receiving some generous fed benefits themselves, whether they know it or not.

  2. rd says:

    Re: Holder finally gets tough

    I am sure that if Holder looks hard enough, he will find that the financial sector could be the gift that keeps on giving for financial prosecutors. It is quite likely that many of the same actors whose 5-year statutes of limitations have passed have continued to create new opportnities for prosection over the past five years since there was no reason to stop.

  3. RW says:

    Just browsing

    The global financial markets: an ultra-large-scale systems perspective

    …the global financial markets have become a complex adaptive ultra-large-scale socio-technical system-of-systems, and that this has important consequences for how the financial markets should be engineered and managed in future. The very high degree of interconnectedness in the global markets means that entire trading systems, implemented and managed separately by independent organizations, can rightfully be considered as significant constituent entities in the larger global super-system: that is, the global markets are an instance of what is known in the engineering literature as a system-of-systems (SoS).

    …the global financial markets SoS can also rightly be considered as a complex adaptive system. Major failures in the financial markets SoS can now occur at super-human speeds, …

    …concerns expressed here about modern computer-based trading in the global financial markets are really just a detailed instance of a more general story: it seems likely, or at least plausible, that major advanced economies are becoming increasingly reliant on large-scale complex IT systems (LSCITS): the complexity of these LSCITS is increasing rapidly; their socio-economic criticality is also increasing rapidly; our ability to manage them, and to predict their failures before it is too late, may not be keeping up. That is, we may be becoming critically dependent on LSCITS that we simply do not understand and hence are simply not capable of managing.

  4. hue says:

    Tea Party’s House Seats Might Not Be All That Safe (BusinessWeek)

    U.S. Malls Pursue Tourist Spending (

    What The NFL’s Head Injury Crisis Means for the NBA (ESPN)

  5. rd says:

    It appears that the oldest shark of all is being torn apart by the younger sharks:

    I assume the sharks have resorted to cannibalism over the past few years because they have consumed most of the prey fish bio-mass already.

  6. Bob is still unemployed   says:

    A provocative title to an informative article…

    A Court Order is an Insider Attack (freedom-to-tinker)

    “Commentators on the Lavabit case, including the judge himself, have criticized Lavabit for designing its system in a way that resisted court-ordered access to user data. They ask: If court orders are legitimate, why should we allow engineers to design services that protect users against court-ordered access?

    “The answer is simple but subtle: There are good reasons to protect against insider attacks, and a court order is an insider attack….”

  7. Bob is still unemployed   says:

    In the scary new app department, LinkedIn’s new Intro iOS email app is being called a man-in-the-middle-attack by security professionals.

    Bishop Fox

    NY Times

  8. VennData says:

    “…It’s curious how readily people who normally revere the wisdom of markets declare the markets all wrong when they fail to panic the way they’re supposed to…”

  9. noncist says:

    Innovation Act of 2013

    A bill to fight patent trolls will help mitigate one risk/worry for small businesses. Hopefully this is one of the few things both parties can agree on.

  10. SkepticalOx says:

    @BR Review of Ferrari F12 by Chris Harris + 5 sets of tires to tear through!