Celebrate Sunday morning with some coffee and these expertly curated reads:

• The Low-Cost Fund Arms Race (Morningstar)
• Brokers Fight Rule to Favor Best Interests of Customers (NY Times)
• China No-Money-Down Housing Echoes U.S. Subprime Loan Risks (Bloomberg)
• Think like a statistician – without the math (Flowing Data) but see Nudge economics: has push come to shove for a fashionable theory? (The Guardian)
• What if Quality Journalism Isn’t? (Baekdal)
• Here’s Why the Student Loan Market Is Completely Insane (Businessweek)
• How Apple TV Might Disrupt Microsoft and Sony (stratechery) see also Silicon Valley Tries to Remake the Idea Machine (NY Times)
• David Brat, the libertarian who beat Eric Cantor, doesn’t believe in the “common” good (MoJo)
• Cool Kids Lose, Though It May Take A Few Years (NPR)
• How Michael Jordan Made $90 Million In 2013 (Forbes)

Time to hit the waves.

Stock Trade Winds Don’t Blow Wall Street’s Way


Source: WSJ

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.

10 Responses to “10 Sunday Reads”

  1. Different system, same script . . . national defense for many of these people is about protecting bottom lines and office tenure . . . but watch them go apoplectic over deficits or programs like ACA . . .

    “The Ground-based Midcourse Defense system, or GMD, was supposed to protect Americans against a chilling new threat from “rogue states” such as North Korea and Iran. But a decade after it was declared operational, and after $40 billion in spending, the missile shield cannot be relied on, even in carefully scripted tests that are much less challenging than an actual attack would be, a Los Angeles Times investigation has found.

    “Despite GMD’s problems, influential members of Congress have protected its funding and are pushing to add silos and interceptors in the Eastern U.S. at a potential cost of billions of dollars.

    “Boeing Co. manages the system for the Pentagon. Raytheon Co. manufactures the kill vehicles. Thousands of jobs in five states, mostly in Alabama and Arizona, depend directly or indirectly on the program.

    “Boeing and Raytheon are among the top four defense contractors worldwide in revenue. From 1999 through March of this year, Boeing spent $261.6 million on general lobbying of the federal government and Raytheon spent $144.4 million, public records show.

    “One of the staunchest advocates for speedily expanding the system has been Sen. Jeff Sessions, a Republican from Alabama, where missile-defense jobs are heavily concentrated.”

    $40 billion missile defense system proves unreliable (LATimes)

    http://goo.gl/4lm1j8

  2. rd says:

    Here is an interesting hypothesis that REITs provide transparency on pricing in the illiquid commercial real estate market and. as a result, the market didn’t boom and bust anywhere near as much as single family homes over the past decade.

    http://www.businessweek.com/articles/2014-06-13/commercial-real-estate-didnt-boom-and-bust-dot-is-this-why

  3. rd says:

    While it was about physics instead of statistics, “The Electric Boy” in the recent Cosmos series highlighted the importance of being able to think things through both qualitatively and experimentally as well as mathematically. Michael Faraday had barely enough formal education to balance his checkbook but was able to come up with the experimental basis for electromagnetic theory that set the table for the 20th century. James Maxwell took the exquisite documentation of Faraday’s experimental work and qualitative theories and converted them into the equations that allowed us to move forward with modern communications and many other things. Statistical mathematics only has value if it is possible to understand the origins of the data set and make predictions for new experimental data sets (see Cantor’s loss in the recent primary).

    http://en.wikipedia.org/wiki/The_Electric_Boy

  4. Jojo says:

    Bloomberg
    UglyGorilla Hack of U.S. Utility Exposes Cyberwar Threat
    2014-06-13

    Somewhere in China, a man typed his user name, “ghost,” and password, “hijack,” and proceeded to rifle the computers of a utility in the Northeastern U.S.

    He plucked schematics of its pipelines. He copied security-guard patrol memos. He sought access to systems that regulate the flow of natural gas. He cruised channels where keystrokes could cut off a city’s heat, or make a pipeline explode.

    That didn’t appear to be his intention, and neither was economic espionage. While he was one of the Chinese officers the U.S. charged last month with infiltrating computers to steal corporate secrets, this raid was different. The hacker called UglyGorilla invaded the utility on what was probably a scouting mission, looking for information China could use to wage war.

    UglyGorilla is one of many hackers the FBI has watched. Agents have recorded raids by other operatives in China and in Russia and Iran, all apparently looking for security weaknesses that could be employed to disrupt the delivery of water and electricity and impede other functions critical to the economy, according to former intelligence officials with knowledge of the investigation. The incursions spurred a debate in the Obama administration over whether and how to respond, and raised alarms among lawmakers briefed on the incidents.

    http://www.bloomberg.com/news/2014-06-13/uglygorilla-hack-of-u-s-utility-exposes-cyberwar-threat.html

  5. Jojo says:

    Clever piece of code exposes hidden changes to Supreme Court opinions
    By Jeff John Roberts
    Jun. 12, 2014 – 8:55 AM PDT

    Summary:
    The Supreme Court has long made surreptitious changes to its opinions without telling anyone. In response, a coder has created a tool that flags and publicizes those changes.

    Supreme Court opinions are the law of the land, and so it’s a problem when the Justices change the words of the decisions without telling anyone. This happens on a regular basis, but fortunately a lawyer in Washington appears to have just found a solution.

    The issue, as Adam Liptak explained in the New York Times, is that original statements by the Justices about everything from EPA policy to American Jewish communities, are disappearing from decisions — and being replaced by new language that says something entirely different. As you can imagine, this is a problem for lawyers, scholars, journalists and everyone else who relies on Supreme Court opinions.

    Until now, the only way to detect when a decision has been altered is a pain-staking comparison of earlier and later copies — provided, of course, that someone knew a decision had been changed in the first place. Thanks to a simple Twitter tool, the process may become much easier.
    Code to the rescue

    http://gigaom.com/2014/06/12/clever-piece-of-code-exposes-hidden-changes-to-supreme-court-opinions/

  6. Jojo says:

    Fasting for three days can regenerate entire immune system, study finds
    A person’s entire immune system can be rejuvenated by fasting for as little as three days as it triggers the body to start producing new white blood cells, a study suggests

    By Sarah Knapton, Science Correspondent
    05 Jun 2014

    Fasting for as little as three days can regenerate the entire immune system, even in the elderly, scientists have found in a breakthrough described as “remarkable”.

    Although fasting diets have been criticised by nutritionists for being unhealthy, new research suggests starving the body kick-starts stem cells into producing new white blood cells, which fight off infection.

    Scientists at the University of Southern California say the discovery could be particularly beneficial for people suffering from damaged immune systems, such as cancer patients on chemotherapy.

    http://www.telegraph.co.uk/news/uknews/10878625/Fasting-for-three-days-can-regenerate-entire-immune-system-study-finds.html

  7. RW says:

    Householders who cannot earn a living wage must make a choice between poverty or going into debt. There are complexities as always but this is a root rot in the United States of the 21st Century.

    Subprime Lending Drives Spending

    A concern that we highlighted in yesterday’s post is that the only way the U.S. economy can generate significant consumer spending is through aggressive lending to borrowers with low credit scores. Here is more evidence supporting that view. …

    NB: Drivers of household and student indebtedness coupled with tepid reform of the financial system virtually assure another credit crisis and correspondingly extended recession within the foreseeable future. No idea on timing of course but at this point I can’t see anything to stop it.