Some reads to finish out the day:

• Investors get bearish, suggesting stocks will rise (MarketWatch)
• Early Tap of 401(k) Replaces Homes as American Piggy Bank (Bloomberg) see also Americans Raid 401(k)s, Replacing Home Equity Withdrawals as Way to Make Ends Meet (Naked Capitalism)
• Financial firms say fiduciary rules for brokers will hurt investors. This expert is skeptical. (MarketWatch)
• Maybe we’re not headed for demographic armageddon after all (WonkBlog)
• Why homes are hitting bubble-era prices without bubble-era headaches (WonkBlog) see also Is owning a house part of the ‘American Dream’? Depends on where you live. (WonkBlog)
• All You Need to Know About Fed Policy in Three Questions (Real Time Economics)
• The radically sensible idea that’s lowering America’s massive monthly student debt payments (Quartz)
• Climate change is harming U.S. economy, report says. (WSJ) see also U.S. Climate Has Already Changed, Study Finds, Citing Heat and Floods (NY Times)
• Woman With Printer Shows the Digital Ease of Bogus Cash (Bloomberg)
• The World’s Biggest Car Collector Is A Dick And Jay Leno Hates Him (Jalopnik) see also The Sultan Of Brunei’s Rotting Supercar Collection (Gizmodo)

What are you reading?


On Climate, Republicans and Democrats Are From Different Continents

Source: The Upshot


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.

11 Responses to “10 Wednesday PM Reads”

  1. willid3 says:

    ethanol is adding to climate change?

    also seems that none of the farm states that grows corn and produces ethanol, actually use it them selves.

  2. rd says:

    The Bloomberg Early Tap of 401ks article misses some huge points, although Naked Capitalsim does begin to discuss them (as usual):

    The initial example is a 56 year old woman with only $10k in 401k savings and has to pay penalties as well as income tax. This example highlights far more issues about the labor market over the past couple of decades than it says about early tapping of 401ks:

    1. 401ks don’t have the 10% penalty if you had 10 years of participation, separated from the company, and are over 55. She meets two of those three critieria, so she couldn’t have had the job for 10 years which highlights the transient nature of emplyment in the work force over the past few decades. A defined benefit pension would not have helped because you have to work for many years and it is almost certain that she would not have enough years tro be vested in much of a pension benefit.

    2. She only had $10k in 401k savings. That means it is unlikely that she had much of an employer match, so clearly this employer felt it met its requirements simply by offering a 401k for an employee to contribute to. This inattention to employee well-being likely means that her 401k contained expensive, inappropriate, poorly performing investment options, further hampering her ability to improve her finances.

    3. The employer slashed her pay to poverty levels (2000 hrs at $7.75/hr = $15,500 epr year) which meant that she was probably unable to save very much. The inability to cover her costs forced her to quit and move home. Slashed pay, out-sourced jobs, and lack of household formation has been the hallmark of the US economy for the past three decades.

    So this article really should have been about the crappy finances of much of the population in an economy that views them as disposable and out-sourcable cogs of production which in turn forces them to tap early into meager sources of savings which incur tax penalties.

  3. VennData says:

    Russia cracks down on bloggers

    Snowden, Hero of the Soviet Union and Rand Paul kissers, has found a great place to bravely cast stones at his former country.

    Benedict Arnold Snowden will protect us from Putin overreach, and terror threats, don’t you warry your pretty heads LOLibertarians.

  4. willid3 says:

    the 3 questions

    1. How much slack remains in the U.S. economy?

    based on jobs, quite a bit. this isnt the 70s where employees could get employers to raise wages to match inflation. even if inflation was going up a lot (which its not) employers aren’t going to increase wages except by tenths of a percent.
    which of course means that sales (revenue) is not going to go up much, since most buyers (employees) will cut back as their incomes stagnate some more

    2. Once the economy returns to normal, say 5.5% unemployment, where should the Fed expect short-term interest rates to be?

    dream on. the odds really having to worry about this really low.
    so why worry about it?

    3. What else should the Fed take into account?
    maybe the should ignore unemployment rate and just target wages. might be slower to react, but its more likely to be reality.

  5. rd says:

    Re: Digital Ease of Bogus Cash

    Isn’t this just Personal Quantitative Easing (PQE)? If she had called the Fed, they may have bought them from her instead of buying T-bills from the Treasury. If it was 2009, she could have claimed to be a bank and given them to the Fed for collateral and gotten real money in exchange.

  6. VennData says:

    ACA issue is dead for the midterms Alert:

    “When is the administration going to tell the American people the truth? They’ve not told the truth about Benghazi, they’ve not told the truth about the I.R.S., they’ve not told the truth about Fast and Furious,”

    If you don’t have any info Boehner, than how do you know they haven’t? Why not accuse Obama of conspiring to kill innocent women and children in Red States? Ask the White house why they don’t respond. It’s the same thing.