Good Sunday morning! Here are some reads to round out your weekend :

• Does Your Broker Love You More Than Himself? (Bloomberg View)
• What You Need to Know Before Reading Financial News (Motley Fool)
• Why the Chinese Are Snapping Up Real Estate in the U.S. (FiveThirtyEight) see also The Re-Explosion of U.S. House Prices Is Over (Businessweek)
• Neuroeconomists Confirm Warren Buffett’s Wisdom (Cal Tech)
• Nonexistent Social Network Worth $4 Billion (NY Mag) see also A ‘Social Networking’ Stock Has Exploded 25,000% In A Few Days And It’s Not Even Clear If The Company Exists (Business Insider)
• How to Get Rich: Paul Graham on Money vs. Wealth (Brain Pickings)
• 13 Ways the NSA Spies On Us (Vox)
• The Higgs Boson Should Have Crushed the Universe (Discovery News)
• Cities find buyers’ remorse for winning Olympics, World Cup (Washington Post)
• God Loves Cleveland (Grantland)

Dim Sum for brunch!


It’s harder to be a poor student in the U.S. than in Russia

Source: WonkBlog

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.

13 Responses to “10 Sunday AM Reads”

  1. hue says:

    The god that sucked: How the Tea Party right just makes the 1 percent richer (Salon) What’s the matter with America? Thomas Frank: Business won on welfare, taxes, regulation, then sat silent as the crazies took over the GOP. Now we’re all screwed.

    Amazon, a Friendly Giant as Long as It’s Fed (NYTimes) Why Harper Lee Never Wrote Another Novel (WaPo)

    Todd Harrison: The Other Side of Compression (Minyanville)

  2. hue says:

    LeBron James Tells The Sports World Exactly What It Wants To Hear (Deadspin)

    The NBA has a problem. His name is LeBron James. (Denver Post) king chicken comes home to roost. the basketball genius who can’t elevate any teammates, his sulking genius needs the right teammates.

  3. SkepticalOx says:

    @BR could you link to a podcast from your “Masters in Business” radio show? Tried searching for it on Bloomberg Radio and the link is broken.

    Thank you :)


    ADMIN: Try these

  4. Aaron says:

    @BR: Thank you very much for the Brain Pickings link to, “How to Get Rich: Paul Graham on Money vs. Wealth”. I want to say as a long time reader of The Big Picture, I can’t begin to tell you how much “wealth” you have created for readers me in terms of financial knowledge. Thanks to you and your insightful writing and links to other excellent authors and contributors like Morgan Housel at MF and Invictus, I have become a much better individual investor. I am so glad you share your wealth of knowledge in financial markets with readers like me, as your writing and insights are priceless! Keep up the great work, and thank you again!

  5. RW says:

    A bit of philosophical macro for your morning.

    Endurance, Shovedown and Pancaking

    …I have been trying to put a name to a dominant part of the human economy. Its defining nature is that it is essential, is ignored, is underpaid or even punished, and is done anyway.

    Let’s call it the Endurance Economy. Many apparently unrelated activities fall into this class: Philosophy and religion, journalism, music and art and literature, farming and ranching, crafts and intricate skills, inventing and experimentation, child rearing, nursing, teaching, military, whistle blowing, emergency aid and rescue …

    Without necessarily knowing it, we all depend on the “endurance sector” for our stability, support and sustenance. …

    • Iamthe50percent says:

      Religion? Essential? I submit that we would all be better of without these fairy tales that are root of the most vicious human behavior. The con men and perverts that push this laughable balderdash should all be exiled from human society.

      • rd says:

        Religion is a useful tool for structuring codes of conduct and defining a common culture that historically has been essential to knit civilizations together. Unfortunately, it is often taken over by sociopaths who wield it as a weapon to gain and maintain power.

  6. RW says:

    You can argue this preference has been gained by deceit and propaganda, that the electorate was cozened to vote against their best interests by a well-funded propaganda campaign promoting prejudice, ignorance and fear, but ultimately that does not change the fact: a choice it was and a choice it remains (ht EquitaBlog):

    Depression is a choice

    We are in a depression because it is our revealed preference, as a polity, not to remedy the problem. We are choosing continued depression because we prefer it to the alternatives…. The preferences of developed, aging polities… are obvious…. Their overwhelming priority is to protect the purchasing power of incumbent creditors. That’s it. That’s everything. All other considerations are secondary…. I am often told that this is absurd because, after all, wouldn’t creditors be better off in a booming economy than in a depressed one?… The revealed preference of the polity is to resist losses for incumbent creditors much more than it is to seek gains…. The policies that might engender a boom are not guaranteed to succeed…. The polity prefers inaction to bearing this risk…

    NB: Relatively low nominal interest rates (and negative real interest rates) will persist until that preference changes.

  7. Jojo says:

    Just what space traveling humans are going to need!
    Biohackers Are Engineering Yeast to Make THC
    July 10, 2014

    How do you get weed without the weed? By genetically engineering yeast to produce THC, of course.

    Once theorized in a stoner magazine column more than a decade ago, a biotech startup working in Ireland is actively trying to transplant the genetic information that codes for both THC and another cannabinoid called CBD into yeast so that new medicinal (and, perhaps recreational) “marijuana” can be grown in a lab–no plants necessary.

    “Right now, growing medical marijuana is expensive and it’s heavily regulated as well. It’s slow to grow, you’ve got to go through several different strains before you get a stable blend,” Sarah Choukah, CEO of Hyasynth Bio, told me. “We’re thinking to bypass all this, to make it quick to grow, we can develop pot from technology that could give us customizable blends of yeast.”

  8. Jojo says:

    Someone should organize boycotts against companies that move their operations off-shore but still try to call themselves American companies!
    Fat Federal Contracts for Tax-Evading U.S. Companies
    By Zachary R. Mider
    July 10, 2014

    Ingersoll-Rand (IR) is a great American success story. Founded 143 years ago by a Connecticut farmer who invented a steam-powered rock drill, the company made tools that carved out the Panama Canal and shaped Mt. Rushmore. More recently it’s become a leader in energy-efficient air conditioners: Ingersoll-Rand’s Trane unit has won more than $350 million worth of federal contracts to retrofit government buildings and military facilities as part of a U.S. Department of Energy conservation program. When President Obama announced an expansion of the initiative in May, Chief Executive Officer Michael Lamach was a guest. Obama offered “thanks to all the companies who are doing the great work.”

    What Obama didn’t mention is that Ingersoll-Rand is no longer a U.S. company, at least not on paper. In 2001, amid a wave of corporate expatriations, it shifted its legal address to Bermuda, cutting its tax bill in half. Other companies that did business with the U.S. government, including Tyco International (TYC) and Accenture (ACN), had also adopted Bermuda addresses, prompting members of Congress to say they’d punish corporations that pull up stakes. “There is no reason the U.S. government should reward tax runaways with lucrative government contracts,” fumed Democratic Senator Harry Reid of Nevada, whose father wielded an Ingersoll-Rand jackhammer as a hard-rock miner. Republican Charles Grassley of Iowa called for an end to “fat government contracts” for such companies.

    In the years since, Congress has passed several pieces of legislation to limit or ban these contracts. Yet the law is riddled with exemptions that allow the offshore companies to legally bid for government work. A company that avoids domestic taxes by shifting its address abroad can still be eligible for federal contracts if it has “substantial business” in its new home–thus nominally demonstrating its move wasn’t solely for tax reasons. The rules also don’t cover U.S. companies that acquire foreign addresses, and tax benefits, through takeovers of overseas competitors.

  9. rd says:

    David Merkel has an interesting post on non-technical indicators of an impending crisis and bear market.

  10. Mayson says:

    Another worthwhile read on money/wealth/riches, and where they come from: Jane Jacobs’s Cities and the Wealth of Nations.

  11. rd says:

    A summary of the current national status of politics.

    It doesn’t discuss the fact that many of the people promoting the policies causing the congressional lack of action actually don’t want a strong federal government and would prefer if the states were more responsible for policies. So it is difficult to negotiate with people who believe that a negotiation failure is an acceptable outcome. In the language of “Getting to Yes” their BATNA is in many cases their preferred outcome in the first place. I don’t think their voters actually understand what this means for their state and local taxes though.