Markets are closed in the US, but I still go thru my favorite sites and papers. Here’s what I’m reading today:

• Waggoner: No bubble in big tech yet (USA Today)
• Hedge Funds Raise Gold Wagers as Goldman Sees Drop (Bloomberg) see also Gold price suffers worst year since 1981 (Fidelity)
• 4 Financial Rules of Thumb in Need of Upgrades (MarketWatch)
• China’s economy grew 7.7% in 2013 because Beijing got nervous and started juicing (Quartz)
• Taming Bubbles is Hard, But Central Banks Can Try: Dallas Fed Paper (WSJ) but see What’s That You’re Calling a Bubble? (Harvard Business Review)
• Medical marijuana production in Canada set for dramatic change (National Post)
• Macro Master—Roger Lowenstein on Tim Harford’s chatty economic primer (WSJ)
• In 2013, the Fed showed why fiscal policy is still important (Washington Post)
• 16 Basic Principles for Avoiding Stupidity (LinkedIn)
• A wishlist for the next generation of Spotify-like services (WSJ)

What are you reading?


Please, tell me more about your bootstraps.

Source: Indexed

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.

6 Responses to “10 MLK Day Reads”

  1. hue says:

    TED Just Admit it: What If These TED Talks Were Horribly, Unspeakably Wrong? (The Awl)

    Om Malik: Facebook Backlash – why we’re embracing spare, single-purpose apps and why that’s likely to continue (Fast Company)

    Swift Boat Veterans For Truth Clear John Kerry After Exhaustive 9-Year Investigation (The Onion) The group endorses Kerry for 2004 election

  2. Iamthe50percent says:

    Regarding the four rules of thumb, I’m going to build a spreadsheet or possibly a C++ program to investigate non-uniform withdrawals in retirement. That is, following the buy low sell high principle, that in boom years, you take a little more off the table, in bust years you tighten your belt and don’t eat the seed corn. Specifically, the model would use the DOW (because I already have a spreadsheet with over a hundred years of data), a base fraction (i.e. 4% or 6%) and the strategy of withdrawing the base fraction plus a fraction, f, of the excess (or deficient) market return. For example, if the market goes up 10%, withdraw (6+.5*(10-6))% if it goes down 10%, withdraw (6+.5(-10-6))%. In the last case, maybe the retiree could pull in his belt and invest 2%. Or the rule could be modified to have a minimum withdrawal rate, 0 or 2% maybe.

    I’d be glad to forward the spreadsheet or source code to anyone interested.

  3. VennData says:

    The upcoming Broncos/Seahawks Pot Bowl and this…

    The call to the winner’s locker room after the game from the Commander-in-Chief should be pretty mellow.

  4. Jojo says:

    From Ashes To Ashes To Diamonds: A Way To Treasure The Dead
    by Rae Ellen Bichell
    January 19, 2014

    Diamonds are supposed to be a girl’s best friend. Now, they might also be her mother, father or grandmother.

    Swiss company Algordanza takes cremated human remains and — under high heat and pressure that mimic conditions deep within the Earth — compresses them into diamonds.
    Rinaldo Willy, the company’s founder and CEO, says he came up with the idea a decade ago. Since then, his customer base has expanded to 24 countries.

    Each year, the remains of between 800 and 900 people enter the facility. About three months later, they exit as diamonds, to be kept in a box or turned into jewelry.

  5. farmera1 says:

    Those nasty little derivatives ( some $600-700 trillion) just won’t go away. There is a high probability (IMHO and others) that a sudden change in interest rates for example could lead to a huge bang, or implosion of the world financial system. The real bubble.

    “Current estimates of the leverage usage in unregulated OTC derivatives that underlie the economies of the western world range from $600 to $700 trillion in notional value, far eclipsing the liquidating value of the banks that generally back these derivatives. The exact extent of the obligation is unknown due to the lack of transparency, but to provide perspective to the scope of leverage being used, the world economy is valued at $72 trillion. If these derivatives were to implode, as they did in 2008, it would literally wipe out the world economy several times over. Derivatives are like insurance contracts. The large banks have underwritten this insurance, most of which is tied to interest rates. If interest rates were to rise rapidly, which is possible given the government debt situation, it could trigger many of these derivatives and create a domino effect type economic crash. Paul Singer is not addressing an outlier event, but rather a situation that many inside the derivatives industry consider a probability.”

    Paul Singer’s speech and subsequent debate, scheduled for January 22 from 3:45 p.m. to 5:00 p.m. CET, will be webcast live and available online for later viewing.