My Sunday morning reads:

• Tesla Is a Car, Not a Revolution (Bloomberg View) see also Tesla No DeLorean as 619% Jump Makes Hottest Auto Stock (Bloomberg)
• Are the robots about to rise? Google’s new director of engineering thinks so… (The Guardian)
• Stop trading! Now, before 2014 turns into 1929 (MarketWatch)
• The philosophical anthropology of the 1% (Potlatch)
• The Baloney Detection Kit: Carl Sagan’s Rules for Bullshit-Busting and Critical Thinking (Brain Pickings)
• Does the ‘Hot Hand’ exist in basketball? (WSJ)
• Netflix and Net Neutrality (stratēchery)
• ‘Unsubscribe’ button is Gmail’s best new feature in ages (Daily Dot)
• Food nutrition labels are set for an overhaul. (WSJ)
• The Biggest Losers In Oscar History And Other Things You Didn’t Know (Digg) see also All 85 Best Picture Oscar Winners Ranked (BuzzFeed)

What are you reading?

 

Average Job Creation and Destruction Rates by Size and Age of Business (1987 – 2011)

Source: Macroblog

 

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 Sunday AM Reads”

  1. chartist says:

    I don’t think the graph showing job creation rate vs age of company is very informative. I work or a 95 year old Japanese company that is creating a tremendous amount of jobs in the US. The reason is they are killing their Yen and therefore must build in the same currency as they sell to avoid inflation’s impact on their factors of production. Beggar thy neighbor monetary policy is driving job creation in the US, not natural gas abundance. I saw a Ford executive complain about Japan’s Yen crushing plan as an unfair advantage. I interpret that as get ready for some bad Ford earnings in the coming quarters which may or may not be related to the Yen. I project Ford stock will slide badly during the summer. And given how well the stock is currently holding up, and that about 70% of a stock’s move is explained by the movement of the overall market, I suspect this will be the time frame for significant market correction.

  2. hue says:

    Alec Baldwin: Good-bye, Public Life (Vulture) What we do in life now echoes in digital eternity

    How Republicans lost their minds, Democrats lost their souls and Washington lost its appeal (WaPo) Putin on a Blitz (The New Yorker)

    Above San Francisco (Behance) We Want to Move into These Buildings Made Out of Old Train Cars (io9)

  3. romerjt says:

    Common sense and conventional wisdom about the auto industry support the author’s Telsa skepticism.
    BUT, over many years people have come to understand on a very deep level that car exhaust is not a good thing, it fact it’s killing us. At an unconscious level deep in the fiber of our being we want something different and are willing to believe, i.e. support the Telsa possibility.
    AND THIS . . “If Panasonic believed sales of electricified vehicles held the sort of growth promise Musk anticipates,. . . . “. Substitute IBM / personal computer or Kodak / digital cameras . . . and where’s the conventional wisdom predicting the internet? Just sayin . . .

  4. farmera1 says:

    So why aren’t companies investing their piles of cash.

    Winner take all. Waiting for the fat pitch.

    http://www.businessinsider.com/el-erian-on-corporate-cash-piles-2014-3

    “In a winner-take-all economy, the relationship between investment spending and outcomes becomes less direct. When a company that’s taken in almost no cash becomes a $19 billion behemoth, it’s hard to draw any line between how much you spend on investment and innovation and payoff. So much of it is luck and network effects, and having, as El-Erian puts it, that “killer app” that takes over the world. Obviously this analysis doesn’t apply to all firms, but this is a powerful trend that may explain a lot.”

    In my old industry, the pharmaceutical industry, 80% of all prescriptions sold in this country are made over seas, with most coming from China and India because of the complete lack of real FDA regulations, cheap labor and no environmental inconveniences. An amazing statistic if you think 80% of prescriptions coming from over seas is unbelievable try this one: One hundred percent of the antibiotics are made in….China and India. Truly amazing, but companies are maximizing the profits for the next quarter. Just one more industry that has moved off shore, one that most people don’t know about.

    So no need to invest huge cash piles in this country when you can hire some one to produce pharmaceuticals in China and India. It is a lot more profitable.

  5. sellstop says:

    that looks like a graph of Darwinian selection with an overlay of low interest rate finance…
    gh

  6. Singmaster says:

    The Oscar list was a great fun.
    Baloney detection from Sagan, awesome.

    I find Buffett’s simple investment advice interesting.
    http://www.forbes.com/sites/davidwismer/2014/03/02/warren-buffett-investing-advice-for-you-and-my-wife-and-other-quotes-of-the-week/
    “What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit…My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors…. ”

    So, a 90/10 allocation. No intl stocks, no small stocks, only ST govt bonds? Why not an agg bond?Too simplistic, I say to myself. But is he right?
    Does a 90 SPY/10 SHY beat a 60/40 widely diversified portfolio?

  7. Jojo says:

    Computational Creativity
    Published on Nov 22, 2013

    As part of its quest to develop cognitive systems, IBM Research is exploring whether a computer can be creative by designing a machine that can create surprising yet flavorful recipe ideas no cookbook has ever thought of in order to enhance human creativity.

    http://www.youtube.com/watch?v=mr-1JAnairs

    More:
    http://www.research.ibm.com/cognitive-computing/index.shtml

  8. Jojo says:

    I am very happy with my Nexus 5 and T-Mobile service ($30 for 100min talk, unlimited text and 5GB hi-speed data). Thanks FCC!
    =================
    Personal Tech
    T-Mobile Turns an Industry on Its Ear in a Fight for Its Life
    FEB. 26, 2014 | Farhad Manjoo

    A rash of consumer-friendliness has broken out across the mobile data industry. Over the last year, the four major carriers — AT&T, Verizon, Sprint and T-Mobile — have cut prices and offered greater flexibility in how they sell their voice, text and broadband services. The industry could be on the verge of an all-out price war.

    Who is responsible for this blessed state of affairs?

    Credit must go to the United States government.

    In 2011, officials at the Federal Communications Commission and the Justice Department moved to block AT&T’s proposed $39 billion acquisition of T-Mobile. That kept the struggling, fourth-place carrier alive as an independent firm. And it led John J. Legere, T-Mobile’s flamboyant, foul-mouthed chief executive, to brand his company the “uncarrier,” and inaugurate a string of measures that have turned every accepted practice in the mobile business on its head.

    http://www.nytimes.com/2014/02/27/technology/personaltech/t-mobile-turns-an-industry-on-its-ear-in-a-fight-for-its-life.html?partner=rss&emc=rss

  9. Jojo says:

    Businessweek
    The New Great Game: Why Ukraine Matters to So Many Other Nations
    By Peter Coy, Carol Matlack, and Henry Meyer
    February 27, 2014

    Ukraine doesn’t seem like the kind of place that world powers would want to tussle over. It’s as poor as Paraguay and as corrupt as Iran. During the 20th century it was home to a deadly famine under Stalin (the Holomodor, 1933), a historic massacre of Jews (Babi Yar, 1941), and one of the world’s worst nuclear disasters (Chernobyl, 1986). Now, with former President Viktor Yanukovych in hiding, it’s struggling to form a government, its credit rating is down to CCC, a recession looms, and foreign reserves are running low. Arseniy Yatsenyuk, head of the opposition party affiliated with former Prime Minister Yulia Tymoshenko, said on Feb. 24 in Parliament, “Ukraine has never faced such a terrible financial catastrophe in all its years of independence.”

    But Ukraine is also a breadbasket, a natural gas chokepoint, and a nation of 45 million people in a pivotal spot north of the Black Sea. Ukraine matters–to Russia, Europe, the U.S., and even China. President Obama denied on Feb. 19 that it’s a piece on “some Cold War chessboard.” But the best hope for Ukraine is that it will get special treatment precisely because it is a valued pawn in a new version of the Great Game, the 19th century struggle for influence between Russia and Britain.

    http://www.businessweek.com/articles/2014-02-27/the-new-great-game-why-ukraine-matters-to-so-many-other-nations

    • rd says:

      It was one of the places at the heart of the great game in the 19th century. It was where Europe, the Ottoman Empire, and Russia all got together to fight the Crimean War in the 1850s. Interestingly enough, Britain and France were allied with the Ottomans against Russia in that war and then fought against the Ottomans in WW I (Lawrence of Arabia). Tennyson’s “Charge of the Light Brigade” came out of the Crimean War due to the failure of Lord Raglan (the sleeve is named after him) to communicate orders properly.

      This one is going to get ugly. The Crimean peninsula has been at the heart of commerce and transportaiton in that part of Eurasia for centuries. Russians believe they have a claim to Crimea, similar to the US having a claim to Texas. The only complication is that Krushchev spun it off into Ukraine in 1954 when national borders didn’t matter much in the Soviet Union.

  10. Jojo says:

    Phew. 14 hrs of unpaid “volunteer work just to be part of the Oscar’s? I don’t think so.
    ————
    Inside the Oscars: a Seat-Filler’s Perspective
    by Julie Miller
    February 27, 2014 6:30 pm

    http://www.vanityfair.com/vf-hollywood/oscars-seat-filler-interview

  11. intlacct says:

    The outbreaks map is a stupidity index for North America. Can we find out what trading positions (the parents of) these people have?

  12. rd says:

    A couple of interesting columns on the potential retirement crisis:

    http://www.marketwatch.com/story/our-next-big-crisis-will-be-a-retirement-crisis-2014-03-03?link=mw_story_kiosk

    http://www.marketwatch.com/story/want-to-retire-double-your-savings-rate-2014-03-01?pagenumber=1

    It is going to be interesting to see how the business community reacts to this over the next couple of decades. It is just starting to dawn on them that shipping their employees jobs overseas and cutting the pay and benefits of the remaining employees means that there is less revenue available for their businesses. Once the people with who have had declining income over the past couple of decades retire and their income really drops, the businesses will likely be hit with another strain on revenue growth.

    So far, the main corporate response seems to be to assume that they can grow their business on the backs for developing world markets. I wonder if Chinese and Indian companies plan on just sitting back and allowing the American companies in to get their revenue growth from their compatriots?