My morning train reading:

• Lessons From the Bull Market (WSJ) see also Wall Street on lookout for signs of market top (USA Today)
• A man and his signals (Reformed Broker)
• New hedge funds face life or death battle for funding (FT)
• Have Researchers Uncovered Buffett’s Secret? (Advisor Perspectives)

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.

14 Responses to “10 MidWeek AM Reads”

  1. ilsm says:

    My morning reading was catching up at GAO.

    Serious financial management problems at DoD. A gold mine for forensic accountants.

    http://www.gao.gov/products/GAO-14-319R Financial Audit of the US Government, 2012/2103.

    “About 33 percent of the federal government’s reported total assets as of September 30, 2013, and approximately 16 percent of the federal government’s reported net cost for fiscal year 2013 relate to the Department of Defense (DOD), which received a disclaimer of opinion on its consolidated financial statements.”

    “Three major impediments prevent GAO from rendering an opinion on the federal government’s accrual-based consolidated financial statements: (1) serious financial management problems at DOD, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal entities, and (3) the federal government’s ineffective process for preparing the consolidated financial statements. Efforts are under way to resolve these issues, but strong and sustained commitment by DOD and other federal entities as well as continued leadership by the Department of the Treasury (Treasury) and the Office of Management and Budget (OMB) are necessary to implement needed improvements.”

    “In addition to the three major impediments, GAO identified other material weaknesses. These are the federal government’s inability to (1) determine the full extent to which improper payments occur and reasonably assure that appropriate actions are taken to reduce them, (2) identify and resolve information security control deficiencies and manage information security risks on an ongoing basis, and (3) effectively manage its tax collection activities.”

    Inappropriate cost allocation, which is extremely common in defense contracts, is a form of fraud.

  2. hue says:

    Facebook Drones to Battle Google Balloons in the War of Airborne Internet (Wired)

    College, the Great Unleveler (NYTimes)

    Snowden Drops Four New Songs at SXSW (Borowitz)

  3. willid3 says:

    free market is slow and weak regulations.

    http://baselinescenario.com/2014/03/11/market-discipline-free-market-weak-hand/

    and not so against fraud as many free marketeers think. in fact it doesnt seem to really care all that much (after we have LIEBOR and MADEOFF as examples of fraud. but there was no sign of any free market punishment, or even that it was noticed. not giving government a pass, but if free market was going to detect fraud, why did it fail so spectacularly? )

  4. Bob is still unemployed   says:

    The Real Victim Of The Comcast-Time Warner Merger? Digital Innovation (fastcodesign.com)

    “For all the press attention directed at Comcast’s recently announced bid to acquire Time Warner Cable (TWC), the merger’s greatest long-term impact has been largely overlooked. We tend to think of Comcast as a purveyor of cable TV first and foremost, and this may explain why media coverage of the merger tends to focus on the familiar dangers of letting a monopoly take control of an entertainment market with millions of customers, worth billions of dollars. While I don’t want to undersell this concern, an equally pressing issue is that the merger places control over much of the country’s high-speed broadband with one media company. In the short run, this keeps the cost of online access artificially high for U.S. consumers, and inhibits improvements in service; in the long run, it could very well stifle digital innovation….”

  5. VennData says:

    Chris Christie protects old-line business interests, Screws Tesla.

    “…The defeat for Tesla, which owns its own stores, came despite a furious 11th-hour lobbying effort. A senior Tesla executive had accused New Jersey Gov. Chris Christie of breaking a deal to hold off on a rule change requiring all car retailers in the state to have a franchise agreement with an auto maker…”

    http://blogs.wsj.com/corporate-intelligence/2014/03/11/tesla-vs-new-jersey-the-car-dealers-strike-back/

    Oh Chris Christie! What a GOP hero! Fighting for the consumer! Change! Leadership! ROFL!

    You GOP genuflectors are suckers. Did you see Rick Santelli shouting today on the “Santelli Exchange” NEVER ONCE did he mention Chris Christie! He blamed Musk! Obamacare! ROFL.

    http://www.cnbc.com/id/100961677

    You right wingers crack me up.

  6. farmera1 says:

    Jobs and machines. Luddites and the rest of us. Here come the machines. You might think you are safe from replacement, but you probably aren’t. Even financial advisors are on the bubble.

    http://www.bloomberg.com/news/2014-03-12/your-job-taught-to-machines-puts-half-u-s-work-at-risk.html

  7. willid3 says:

    oh oh. wages set to grow and profits to sink?

    http://www.ibtimes.com/us-investors-workers-may-feel-odds-tapering-earnings-wage-growth-citi-1560803

    wonder where they think their sales will come from?

  8. thomas hudson says:

    i did enjoy that new cosmos program sunday night. i read sagan’s book when i was a boy, and watched the original program with eyes wide open. it had a profound effect on me. good article today on famous scientists’ views on government:
    http://www.realclearscience.com/lists/great_scientists_on_government/role_of_government.html?state=stop

    “Science is more than a body of knowledge, it’s a way of thinking. A way of skeptically interrogating the universe with a fine understanding of human fallibility. If we are not able to ask skeptical questions, to interrogate those that tell us that something is true, to be skeptical of those in authority, then we’re up for grabs for the next charlatan, political or religious who comes ambling along.”

    - Carl Sagan

  9. rd says:

    Re: Disparity of Wealth and Life as a Retail Worker

    I think the biggest gift that we can give the 1% in the next bear market is the gift of the free market.

    This was in process in 2008-9 when it was suddenly interrupted by TARP, TBTF, ZIRP, QE etc. This interruption made sense then (although some prosecutions would have been very beneficial) as the 1% had positioned us to have a collapsed economy and therefore they needed to be saved in order to save ourselves. The bottom 80% to 90% survived, but barely, while the top 1% have benefited immensely from this interruption of the free markets. As Buffet has said, there is class warfare and his class is winning.

    However, there should now be the mechanisms in Dodd-Frank (one of the reasons for the bill) to allow for “resolutions” in the next go around.It will be very important to allow these resolutions to move forward in their entirety. If an institution needs to be saved through extraordinary measures, then it needs to be effectively nationalized, and all senior management turfed with their shares valued at zero.

    The 1% that have built very solid companies (Berkshire, Google etc.) will come out of this process in fine condition and will continue to be applauded. Many of the rentiers will probably not do quite so well as their leverage works both ways.

  10. krsone says:

    Here’s a great article that I think explains a lot. A choice quote: “While conventional economics sees instability — and, ultimately, crisis — as the exception and equilibrium as the rule, Minsky argues the exact opposite: equilibrium is actually only a phase that economies pass through on the way to their next crisis.”

    http://www.salon.com/2014/03/08/the_sociopathic_1_percent_the_driving_force_at_the_heart_of_the_tea_party/

    • catclub says:

      good article, but the tea-party aspect was tacked on. Two lines at the end of the article.

      There could have been much more discussion of particular tea-party tropes, but it was all on the sociopathic imagination. It seemed like a re-write of a good thesis to get page views.