Good Monday morning. Start your week with these morning reads:

• Just How Dumb Are Investors (MoneyBeat)
• The Small-cap Divergence (The Irrelevant Investor) but see No reason for these stock market jitters (Reuters)
• Embarrassment of riches for pension funds. (WSJ)
• ‘It was the point where the eurozone could have explode’ (FT)

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 Monday AM Reads”

  1. RW says:

    Twenty Questions Tim Geithner’s “Stress Test” Should Answer About His Tenure at the Treasury

    1. Why was the “Rubin Question” not asked? Why didn’t every meeting end with: “What do we need to do today in order to create room to maneuver in case our assessment of the economy is wrong?”? …

    2. Why did the Treasury’s loans to banks via the TARP come with neither bankruptcy-control rights …nor shareholder-control rights …?

    3. Why was the Treasury’s first priority in January 2009 not filling the post of Director of the FHFA with somebody smart who understood …the housing finance crisis’s role in causing and maintaining the catastrophe, and the potential macroeconomic benefits to be gained from resolving the housing finance crisis?

    4. Why …?

    NB: My own take is that Geithner was a technician in over his head WRT macro-policy and either didn’t know it — Peter Principle, Dunning-Kruger effect, whatever — or unwilling to ask his superior to stop asking him for advice; i.e., Obama shouldn’t have been looking to him as an economic policy authority in the first place.

    Others have commented on Obama’s curious preference for Rubinistas as economic advisers — Christina Romer excepted but he apparently didn’t listen to her anyway — and corporate lawyers for legal counsel to say nothing of the preference for working through mis- or mal-managed institutions rather than intervening directly but I have this suspicion that Obama and most of his advisers had internalized a version of the Reagan mantra and didn’t really believe, as FDR clearly once did, that government had both the authority and the ability to massively and successfully intervene when called upon to do so.

    The real message of most of these “post-crisis” apologia seems to boil down to attempted explanations for why that call never came.

    • willid3 says:

      i thought was created in 2008? but i suspect that the reason that O has been so very tentative in economics is that a lot of his advisers had no real idea what to do. and had to no real faith that if they did any thing at all, that it would fail, and paint them as failures. why he kept them is a different question. but you do hire folks who are suppose to be experts and then you have to listen to them. since no one person can be an expert on all things.

      • rd says:

        For close to 20 years, the economic advisors to the White House for both parties have had one firm mission since Rubin and Summers. Their mission has been to ensure that the financial sector is deregulated and the opportunity for the top dogs in the financial sector to maximize profits is developed and maintained. That was Geithner’s job at the Fed and Treasury.

        Since many of the obvious responses to the financial crisis would have violated this mission, it was clear that they needed to avoid them even if the effectiveness of avoiding them was questionable. As a result, the advisors made sure that any actions for the financial sector when it was on life support would have minimal strings attached with the promise of no investigations or prosecutions, since any of these would be “destabilizing” unlike the activities that occurred prior to the ifnancial crisis.

  2. Bob is still unemployed   says:

    Who would have thunk that Google is building a package delivery company?

    Google Shipping Express Expands to Manhattan (theepochtimes.com)

  3. rd says:

    The best argument yet in support of the carried-interest loophole: Apparently billionaires who got much of their wealth through the carreid interest tax rate, become all philanthropical and donate money to save the Washington Monument. Without the carried interest rate tax rate, the United States could not have afforded to fix it.

    http://blogs.marketwatch.com/capitolreport/2014/05/12/thank-the-carried-interest-loophole-for-the-restoration-of-washington-monument/

  4. DeDude says:

    On the Koch brother story about fighting with their own pet invention of Tea Partiers I don’t think anybody could be surprised. Solar panels on your rooftop is a classic libertarian “independence” (small government) item and obviously in conflict with the Koch’s personal interest. The Koch’s are also in conflict with the “national security” conservatives on this one, since we would be much better off with decentralized energy production where every home and business produce a substantial % of their own energy needs. Interesting thing is that the more these energy companies push against personal solar with solar and gird connection fees (and some of those are legit), the quicker we will develop complete off grid personal systems, allowing people to cut the cord and leave corporate energy out in the dark. If environmental groups phrased solar as “personal energy independence” then they could hook up with Tea Partiers to the benefit of all.

  5. rd says:

    Interesting headline here: “Why Millenials are Hurting the Real Estate Recovery?”

    I would put this headline up there with “Why are Deer Ribcages Damaging Bullets?”

    http://www.marketwatch.com/story/why-millennials-are-hurting-the-real-estate-recovery-2014-05-12

    The message is clear. Millenials are Un-American and are refusing to do their duty to maintain the economy in the style to which it has become accustomed. The unwillingness to take on even more debt on top of their student loans is unconscionable. Agter all, everybody knows that buying homes is the essential step to wealth – just because their parents lost their house to foreclosure is no reason why they should not step up and do their duty.

    • willid3 says:

      yep nothing to see here move on. its not like there was a major change in how their world looked to them is it? i mean after all entry level jobs are now extremely plentiful and they have been able to pay off those student loans early right? and of course the average house hold income has been sky rocketing in the last year right?

      so why are they just sitting on all that money now?

  6. willid3 says:

    is all of these prioritization mantra thing driven by private greed and political cowardice? and here i thought we were a much richer much bigger country than we were back in the 1950s when they started work on the interstates.

    http://www.nakedcapitalism.com/2014/05/53079.html

  7. Jojo says:

    Too funny. This is like the old Spy vs. Spy cartoon from Mad magazine…
    ===========
    Glenn Greenwald: how the NSA tampers with US-made internet routers

    The NSA has been covertly implanting interception tools in US servers heading overseas – even though the US government has warned against using Chinese technology for the same reasons, says Glenn Greenwald, in an extract from his new book about the Snowden affair, No Place to Hide

    The Guardian, Monday 12 May 2014

    For years, the US government loudly warned the world that Chinese routers and other internet devices pose a “threat” because they are built with backdoor surveillance functionality that gives the Chinese government the ability to spy on anyone using them. Yet what the NSA’s documents show is that Americans have been engaged in precisely the activity that the US accused the Chinese of doing.

    http://www.theguardian.com/books/2014/may/12/glenn-greenwald-nsa-tampers-us-internet-routers-snowden

  8. willid3 says:

    why was the housing crash worse than than the tech one?

    http://fivethirtyeight.com/features/why-the-housing-bubble-tanked-the-economy-and-the-tech-bubble-didnt/

    distribution?

  9. willid3 says:

    we would never see this in the US now would we?

    http://www.reuters.com/article/2014/05/12/us-sony-bonuses-nikkei-idUSBREA4B0RO20140512?feedType=RSS&feedName=technologyNews

    executives giving back bonuses when the business is struggling

    also of note

    it totals for about 40 executives $9.8 million dollars. and its about 30-35% of their total pay

    now why is it we have to pay our executives so much again?

    seems like the cost of living is higher in Japan than in the US