Welcome back to the workweek. My morning  train reads (continues here):

• Why interest rates may stay very low for a lot longer (LA Times) but see Investors are seriously underestimating where interest rates ought to be in two years’ time (MoneyBeat)
• Gold might be up this year, but it’s worth only $800 (MarketWatch)
• What Investors Are Worried About Today (Morningstar) see also It’s time for U.S. firms to earn stock investors’ faith (WSJ)
• What rock and roll taught the world about money (MarketWatch)

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 AM Monday Reads”

  1. RW says:

    Correcting macroeconomic misconceptions is a Sisyphean task but worth the struggle because getting the basic concepts right can clarify what is otherwise a muddy debate; e.g.,

    GDP and the Public Sector

    …several areas, such as infrastructure and education spending, where the government contributes to our well-being, …are not directly picked up in GDP as contributions from the government.

    …GDP is a measure of economic activity. It is not a comprehensive measure of societal well-being and anyone who tries to use it as such is showing off their ignorance. …

    Similarly, GDP is telling us the value of goods and services the economy produced. It is not telling us whether the pollution that results is killing us, …

    …the problem of assessing the government’s role in the economy goes much deeper …. A huge amount of economic activity is undertaken through the incentives of patent, copyright, and trademark monopolies. Pharmaceuticals alone account for more than $380 billion a year in sales (2.2 percent of GDP). …

  2. rd says:

    This was a fascinating article looking at the financial details of a family of four that want to “Live the American Dream”. It takes a gross income of $130k in much of the country to achieve that. Since most families don’t make $130k per year on a regular basis during child-rearing years, it clearly explains why retirement savings are lagging as well as student debt is ballooning. Pushing the median household income is probably the most helpful thing that could happen in the economy. Unfortunately, it appears the political, business, financial, and legal system is largely aligned to prevent that.


  3. rd says:

    The biggest single lesson that rock and roll taught the world about money is to be responsible for your own finances, vet your financial advisors extremely carefully, and audit them regularly. Many of the great acts have been essentially impoverished by their record labels, managers, and advisors who clearly did not believe they had the fiduciary duties the performers thought they were bound by. Acts like the Dave Clark Five really redefined how bands could handle their own finances and retaining their intellectual property and work product rights. BTW – JK Rowling clearly learned some of those lessons as she did subtle things, like retaining electronic publishing right at a time when the book industry didn’t really care about them.

  4. hue says:

    that Razr story is silly. do you need a month to notice its limitations today? might as well use a Nokia 5110. this guy tried it to stop his smartphone addition. Why I dumped my smartphone for a 7-year-old Motorola Razr (WaPo)

    The Most Annoying Problem in Computing Is Still Unsolved (NYMag) no Moore’s law for batteries

    Why liberals are abandoning the Obamacare employer mandate (Politico)

    CIA employee’s quest to release information ‘destroyed my entire career’ (WaPo) yeah, Snowden should have gone through proper channels

  5. Jojo says:

    In conjunction with “What Rock and Roll Taught the World About Money”, I offer:
    Jul 7, 2014
    Why Classic Rock Isn’t What It Used To Be
    By Walt Hickey

    Led Zeppelin is classic rock. So are Mötley Crüe and Ozzy Osbourne. But what about U2 or Nirvana? As a child of the 1990s, I never doubted that any of these bands were classic rock, even though it may be shocking for many to hear. And then I heard Green Day’s “American Idiot” on a classic rock station a few weeks ago, and I was shocked.


  6. Jojo says:

    The Health Care Waiting Game
    Long Waits for Doctors’ Appointments Have Become the Norm
    JULY 5, 2014

    ONE small consolation of our high-priced health care system — our $2.7 trillion collective medical bill — has been the notion that at least we get medical attention quickly.

    Americans look down on national health systems like Canada’s and Britain’s because of their notorious waiting lists. In recent weeks, the Veterans Affairs hospitals have been pilloried for long patient wait times, with top officials losing their jobs.

    Yet there is emerging evidence that lengthy waits to get a doctor’s appointment have become the norm in many parts of American medicine, particularly for general doctors but also for specialists. And that includes patients with private insurance as well as those with Medicaid or Medicare.

    Merritt Hawkins, a physician staffing firm, found long waits last year when it polled five types of doctors’ offices about several types of nonemergency appointments including heart checkups, visits for knee pain and routine gynecologic exams. The waits varied greatly by market and specialty. For example, patients waited an average of 29 days nationally to see a dermatologist for a skin exam, 66 days to have a physical in Boston and 32 days for a heart evaluation by a cardiologist in Washington.


    • willid3 says:

      so its normal to wait for an appointment. so why is it we pay so much more that others do again?

      • rd says:

        Some of the major additional costs are the improvements provided by our private insurance companies and hospital administrations compared to the other countries’ healthcare systems. Whenever I have discussed the US healthcare system with my personal doctor he is effusive in his praise of the streamlined paperwork and billing systems in the US. He has found that the additional staffing needed to handle this streamlined private sector paperwork have improved his practice and cost structure immensely. The collegial discussions with the non-rationing insurance companies regarding whether or not he can get his sick patients admitted into hospitals also improves his practice’s efficiency and quality of health care.

      • willid3 says:

        of course, its all just how you look at it.

      • Jojo says:

        willid3 asked – “so its normal to wait for an appointment. so why is it we pay so much more that others do again?”
        Because other countries use rusty scissors and scalpels in surgery and we don’t? [lol]

  7. RW says:

    Fed Watch: Inflation Hysteria Redux

    …If you are making a short-term bet on higher headline inflation, primarily you are making a bet on energy and food. That bet is about the Middle East and weather, not monetary policy. I don’t have an opinion on that bet. If you are betting on inflation over the medium-term, primarily you are making a bet on higher core inflation. More to the point, you are betting against the Fed. You are essentially betting that the Fed will not do what it has done since Federal Reserve Chair Paul Volker – tighten policy in the face of credible inflationary pressures. I would think twice, maybe three times before making that bet.

  8. thomas hudson says:


    vw does public service movie trailer to graphically show why shouldn’t text and drive. sent them all a text in the theater, if i am understanding the premise correctly.


    math prof devises a metric to see whether people actually read a book or not (using kindles).

  9. rd says:

    Apparently electric car owners have homes that use significantly more electric energy than the average homeowner. We should have Al Gore fly in ton his private jet to give them a lecture on how important it is for them to reduce their energy usage.


    • willid3 says:

      well we are talking Teslas right? the $80,000 car? did we think that some one that could afford that wouldn’t be in a tiny home? course if we looked at those who Roll Royces, or Porshes i am thinking we would see the same ‘affect’