My longer form reads for the weekend:

Dallas Fed’s Richard Fisher: Money Makes the World Go Round (Texas Monthly)
• The Pixar Theory (Jon Negroni)
• The Craft Beer Movement (Priceonomics)
• William Sharpe: The Arithmetic of Active Management (Stanford)
• NFL Free-Agent Lawyer to Unlock $16 Billion in NCAA Athletes (Bloomberg)
• How do religions die? (The Guardian)
• Fault Line Splits Hollywood – literally (WSJ)
• Chinese Philosophy Lifts Off in America (Chronicle)
• How a Purse Snatching Led to the Legal Justification for NSA Domestic Spying (Wired)
• A New Theory on “Mark Twain” by Daniel Hernandez (Los Angeles Review of Books) see also Book Review: ‘David and Goliath’ by Malcolm Gladwell (WSJ)

What are you doing this weekend?


Markets Shrug at Shutdown Even as Debt Battle Looms  
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.

18 Responses to “10 Weekend Reads”

  1. theexpertisin says:

    Fault Line Splits Hollywood….

    Nice to see a pic of the old Capital Records building. This circular tower actually resembles stack of records waiting their turn to drop down and play, although I believe it was not the intent of the architect. If only the walls could talk (and playback recording sessions and musician banter).

    Many trends and artists germinated there.

  2. louiswi says:

    The chart/graph seems to attempt to show what happened and who was involved when what happened but is incomplete in that it does not show how it happened.

    The largest tax cut in history coupled with two completely un-funded wars is how this soaring debt happened. The party in complete control of those events is the same party that is now up to no good once again.

  3. Bob is still unemployed   says:

    > What are you doing this weekend?

    I think I’m going to take a nice leisurely stroll

  4. chartist says:

    Read you article on daily ticker BR. I disagree with your 20 to 30% drop if government stays closed. We’ve done that before. No one believes in long term ramifications. and the Fed has our back with QE…Plus, your call of earnings being at a cyclical high is correct, but that’s not driving this market, it’s QE that will drive PE expansion.

    • What I ACTUALLY said:

      “It turns out the market really doesn’t care much if [the shutdown] is a day or a couple of weeks,” says Barry Ritholtz, chief investment officer of Ritholtz Wealth Management. “Where it becomes a concern…is if weeks turn into months. If it goes past three or four weeks, that could take a big chunk off GDP, effect consumer confidence and really have an impact on earnings.”

  5. Jojo says:

    Let’s throw in Mexico also. Solve most of our illegal immigration problems also.
    The Case for Canamerica
    The far-out, incredibly earnest argument for why the U.S. should merge with its northern neighbor.


    Imagine, if you will, a moment in the not-too-distant future: A decades-long effort by Chinese companies to infiltrate Canadian banking and drilling firms has succeeded in securing Canada’s oil and natural gas fields for pillage. At least some money from these deals trickles into Ottawa’s coffers, which is more than the government can say for its oil in the Arctic, where Canada has been muscled out of its claims by extraction companies with the backing of the Russian government. A network of Chinese ports has secured the sea lines along the Northwest Passage, circumscribing Canadian sovereignty, and Canada’s military, enfeebled after years of reliance on the United States, is powerless to resist. Canada effectively lapses into a vassal state, reliant on neocolonial patriarchs in Beijing and Moscow.

    This dystopian scenario isn’t the plot of an episode of The Twilight Zone or some modish alternate-history, sci-fi story — it’s the threat laid out by Diane Francis, a veteran business reporter and current editor at large of Canada’s National Post, in her newly released book, Merger of the Century: Why Canada and America Should Become One Country.


    • theexpertisin says:

      Interesting speculation. Maybe both countries are too large.

      Perhaps if we returned the old Alta California to Mexico, gave our Canadian friends Oregon and Washington – allowing them to split Canada into a separate western and eastern duo, then allowed the Old South (add Texas and exclude Virginia) to become the CSA part two folks would be happier and government run with less angst and a lot less military bloat.

      New York City is already an independent country, so let it go to become another Hong Kong. BR could stage a coup and become dictator.

  6. > If it goes past three or four weeks, that could take a big chunk off GDP, effect consumer confidence and really have an impact on earnings

    What’s complicating this issue is the debt ceiling imbroglio . . . I think it’s increasingly likely that these are merging in a deal, and there’s a rapidly approach deadline for raising the debt limit before the markets react harshly. I’d like to think that behind the scenes and out of the way of the public political posturing progress is being made – I think that’s the on-going assumption by Gross et al, . . . but part of me wonders . . .

  7. RW says:

    Obamacare Isn’t Causing an Increase in Part-Time Employment, In One Chart

    One of the more baffling messages in the current debate over the economy and “Obamacare” is the hue and cry over the trend in part-time employment. The fact is that since the end of the Great Recession, the trend in part-time employment has been down, not up.

  8. Jojo says:

    Yet another nail in the coffin of human employment prospects….
    Robot Bartender Lets You Drown Your Sorrows
    By Edwin Kee on 09/23/2013

    Are robots taking over the world? Well, the answer might be yes, although to have the kind of robots that we have seen in Will Smith’s I, Robot, is still a far fetched scenario, but we are definitely not going to deny that such a thing can happen down the road. However, if there is one domain that robots might creep in slowly but surely, it would be the role of a bartender. “James” is a robot that has been designed to be a bartender, and chances are it will be one of the most fair and attentive mixologist whom you will ever come across.

  9. Bob A says:

    republicans live in a fairy tale world. facts are irrelevant.

  10. bonzo says:

    >If it goes past three or four weeks, that could take a big chunk off GDP, effect consumer confidence and really have an impact on earnings.”

    The market we’re in is like the late 1960′s, except that deflation rather than inflation is the risk, and this shutdown is deflationary. Everyone has forgotten that stocks are in the first-loss position and so prices have been bid up and the margin of safety has been eroded. So yes, a 30% drop is quite realistic. In fact, a 30% drop is not just realistic but almost inevitable at some point in the next few years. I’ll wait on buying back into stocks until AFTER that drop occurs. In the meantime, my intermediate-term high-quality bonds are paying a higher yield than stocks (and the munis are even paying that yield tax-free), with much less downside risk than stocks (barring outbreak of war or natural disaster equivalent to war which causes a massive spike in government spending and thus inflation).

    Some people say the market is always risky. True, but sometimes there is sufficient margin of safety that the risk is worth taking, sometime there isn’t.

  11. 873450 says:

    Lobbyists win again – stalling legislation restricting North Atlantic deep-sea fishing method that in just 10-15 years indiscriminately decimated 80% of 100+ species trawling for 4 species marketable for consumption by humans and chickens.

    Deep-Sea Plunder and Ruin

    “… as the Fisheries Committee of the European Parliament wrangles with proposed legislation to phase out the use of deep-sea-bottom trawls and other destructive fishing gear … many of the panel’s members are prone to repeating partial truths supplied by lobbyists about the sustainability of deep-sea fish stocks and the lack of damage to fish life at the bottom of the ocean. If these voices prevail in a vote later this month, then the committee will have succeeded in keeping the measure bottled up and away from consideration by the full Parliament.”

  12. BennyProfane says:

    Thanks. Fantastic links this week.

  13. [...] Updated: I neglected to mention how I stumbled across this gem. 10 Weekend Reads by Barry Ritholtz [...]

  14. overanout says:

    NCAA seems an odd institution riding herd over the out dated concept of amateur athletes in the United States given that professional players have been going to the Olympics since 1970. Currently the NCAA has 400 employee’s to insure no player takes a dime as a massive network of coaches and school officials make salaries from low 6 figures to millions of dollars. College sports is big business and the students who create the entertainment should benefit financially far beyond the scholarships the NCAA has approved. The NCAA cares not about the women’s field hockey team or the weekly flag football match ups but many of the high profile players playing on various national TV should get professional contracts and agents.

  15. Ivana Puke says:

    I’m going to the Solar Decathlon this weekend. Glad you asked.