My afternoon train reading:

• This Week Is Do or Die for Market Bears (Yahoo Finance) see also Hedge Fund Bears at Year High as Equities Focus on Budget (Bloomberg)
• Open Season on C.E.O. salaries (New Yorker)
• Shiller’s Nobel win is a nod to the asset bubbles we lived through (MarketWatch) see also The prize-winning property Shiller (FT Alphaville)
• What’s an Economist to Do Without Government Data? (Real Time Economics)
• China’s Greenland Invests in New York Project (World Property Channel)
• U.S. May Join Germany of 1933 in Pantheon of Defaults (Bloomberg) see also U.S. Default a Road to Catastrophe (Moneybeat)
• The Rush of Football Twitter (WSJ)
• Putting Robots to Work in Solar Energy (NYT)
• Qualcomm’s brain-inspired chip: Good phone, good robot (
• Banksy Engaged In An Ingenious Stunt This Weekend, Secretly Selling Incredibly Valuable Art For Cheap On The Street (Business Insider)

What are you reading?


How Digital Behavior Differs Among Millennials, Gen Xers and Boomers
Screen Shot 2013-10-14 at 9.41.11 AM
Source: eMarketer

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.

3 Responses to “Monday PM Reads”

  1. RW says:

    Robert Shiller showed that markets frequently misprice risk even in better circumstances. Even if the Republicans manage to pull their heads out of their arses and pass a clean continuing resolution circumstances are not ‘better’ and damage has been done.

    The Default Has Already Begun

    The harm done to the global financial system by a Treasury debt default would not be caused by cash losses to bond investors. If you needed that interest payment, you could always just sell your Treasury bill instead, for an amount extremely close to the total principal and interest due. Rather, the harm done would be a function of the way in which the Treasury market is the risk-free vaseline which greases the entire financial system. If Treasury payments can’t be trusted entirely, then not only do all risk instruments need to be repriced, but so does the most basic counterparty risk of all. The US government, in one form or another, is a counterparty to every single financial player in the world. Its payments have to be certain, or else the whole house of cards risks collapsing — starting with the multi-trillion-dollar interest-rate derivatives market, and moving rapidly from there.

    And here’s the problem: we’re already well past the point at which that certainty has been called into question.

  2. willid3 says:

    economists without data? isnt that the normal state for some of them?

  3. RW says:

    Republicans are delusional about US spending and deficits

    There is no doubt that the Republicans deserve the blame for the shutdown and the risk of debt default. They decided that it was worth shutting down the government and risking default in order stop Obamacare. …

    …However, the public apparently did not agree with the Republicans. Polls show that they overwhelmingly oppose their tactic of shutting down the government and risking default over Obamacare. As a result, the Republicans are now claiming that the dispute is actually over spending.

    Anywhere outside of Washington DC and totalitarian states, you don’t get to rewrite history. However, given the national media’s concept of impartiality, they now feel an obligation to accept the Republicans’ claim …

    …the story of out-of-control debts and deficits is just plain wrong. Less polite people would call it a lie, but it stands at the center of the public debate because the media consider it rude to point out a truth that would embarrass so many important politicians. The idea that we face a longer term deficit problem of enormous proportions has little better grounding in reality.