Good morning. My snowy, end of week reads:

2013 Silver Bullet Awards: Debunking dangerously misleading financial analysis (A Dash of Insight)
• 5 Structural Reasons for Higher Profit Margins (Pragmatic Capitalism) see also 2014 Earnings Outlook (Barron’s)
• It’s Not a Church, It’s Just an Apple Store (Re/code)

 

Continues here

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.

10 Responses to “10 Friday AM Reads”

  1. rd says:

    A lot of daily low records are being broken in Canada. Some of them are getting shattered:

    http://www.accuweather.com/en/weather-blogs/anderson/blizzards-bitter-cold-lake-effect/21640149

    For those of you not used to the concept of temperatures that are much colder than your freezer, -40 is where Celsius and Fahrenheit are the same. At these temperatures, diesel fume is beginning to behave more like a slurry than a liquid and the foam in your car seats is probably frozen solid so it is like sitting on a table.

  2. Bob is still unemployed   says:

    A MAC address (nothing to do with Apple) uniquely identifies a device on a network.

    So that begs the question, why does coca-Cola need millions of MAC addresses (theregister.co.uk) all of a sudden?

  3. hue says:

    All Men Are Created Unequal (The Economist)

    Why China Can’t Take Over The World (Noahpinion)

    First Auroras of 2014 (EarthSky) Coinye West (The Guardian)

    I think David Brooks wrote a column on weed, my Twitter feed blew up last night

  4. mpetrosian says:

    Legalize it!!!

  5. rd says:

    The wild card may be showing up:

    http://www.marketwatch.com/story/philly-feds-plosser-warns-of-rapid-rate-rise-2014-01-03

    The “Black Swan” event has been the unprecedented ZIRP over the past several years. Plosser becoming a voting member could hasten short-term rates back to normalcy sooner rather than later which is probably not factored into the markets’ pricing until 2016 or later.

  6. rd says:

    Laffer admits he is wrong!!! But now he has decided to take on a new topic to be wrong about (let’s not get started on tax cuts paying for themselves).

    He admits he was wrong about the increase in bank reserves causing inflation in 2009.

    http://pragcap.com/inflation-does-not-appear-to-be-monetary-base-driven
    http://www.businessinsider.com/arthur-laffer-interview-2014-1

    However, at the end of the BI post it appears he is going after Obamacare because, as he states “You can’t give away healthcare and not expect the system to overuse it”

    Apparently he is unaware that the US spends far more on healthcare than any other developed country where they typically “give it away” through various degrees of socialized medicine and universal healthcare. Economics is so much easier when you don’t worry about actual real world data.

    “Full speed ahead and damn the data-pedoes!”

  7. willid3 says:

    out sourcing government.
    http://www.nakedcapitalism.com/2014/01/quelle-surprise-new-report-show-outsourcing-government-services-looting.html

    not sure why many think this is all that good. unless they really like paying tolls on roads. that used to be free. but then it doesn’t really work all that well in the private sector either. its just never a news story when it fails.

    • rd says:

      Unfortunately Americans appear to believe that government is incompetent and then keep electing politicians determined to prove it. Government is an organization and like all organizations can be well-run or not. The choice is up to the organization and its stakeholders. However, if it is not run well, then there shouldb e no reason to expect that they will be able to contract for outside services any better. In my experience of many years with design and construction, I have found that the best people at contracting services out are also the best people at executing within their own areas of expertise and vice versa.

      Public infrastructure is different from most other investments as its design life is almost always measured in decades and is usually required to be at least 50 years. While it makes sense to hire outside contractors to design and build it as a one-off thing along with major refittings, it usually also makes sense to have the day-to-day repetitive work done by in-house people. I have seen very good DPWs that know how to execute well, including coming up with innovations and hiring effective consultants and contractors to supplement their internal expertise. I have also seen others that struggle with opening the mail.