My pre-holiday morning reads (Continues here):

• The Bull Market Is Aging, but Hasn’t Lost a Step (Barron’s)
• Austrian Economists, 9/11 Truthers and Brain Worms (Bloomberg View) see also The Trouble With Shadowstats (Azizonomics)
• My Idea for a TV Show About Investing (A Wealth of Common Sense)
• FAIL: The IPO is dying. Marc Andreessen explains why. (Vox) but see So far, 2014 is setting IPO records globally (CBS MoneyWatch)

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.

16 Responses to “10 Thursday AM Reads”

  1. hue says:

    Disliking Congress, as a Whole And as Individuals (538) Replace them with the Diet of Worms

    10 Tricks to Appear Smart During Meetings (medium rare) How 13-Year-Olds Really Use Snapchat (mashable)

    The Decline of the Company Softball Team (WSJ) if you can’t read this, google the headline, click on the link … my greatest athletic achievement was on a company softball team, I jacked a couple over the fence in Central Park, the right field fence was only 200 feet or so.

  2. Molesworth says:

    Based on the comments, Noah Smith sure opened a can of worms.

  3. VennData says:

    Productive Economy leads Team Pessimism 17 Trillion to Zero

    ​”…If you were rooting [... er.. a...] for betting on collapse, well, this ain’t it. Reality decided not to confirm your religious or political beliefs about what “should” happen this time around…”​

    Larry Kudlow and Rick SanYelli look ridiculous… I’m sorry,er… a… they look very academic, street-wide, prescient. Great economic minds, excellent trading records. Pundits to the Pundits. I would keep following them GOP donors. Keep buying MORE bonds.

    • ch says:

      The collapse in a fiat political economy will happen on a real basis…when cheap oil production rolls over.

      Be long oil and factors of production and the new oil settlement asset (physical gold).

      The price of everything has collapsed v oil gold and industrials since 2000 and with $100T in obligations promised to the boomers, this will continue even further in the next 10 years.

      Hear me now, listen to me later. Easiest trade ever. Just hAve to be patient.

  4. MinskyMinded says:

    In defense of the Austrians (not the nutty fringe), Big Ben said himself his goal to to inflate stock prices. And by most accounts bond prices are also inflated. So there has been inflation, just not where they expected it.

    • RW says:

      Need an authoritative link for the Big Ben statement WRT intentionally inflating stock prices. I’ve heard similar assertions but never seen corroboration by a primary source or even a reliable secondary source and am beginning to think it’s just another urban legend.

      Also heard a lot about ‘inflated’ bond and stock prices as well as gas, food, education, or what have you but redefining inflation to mean something other than its formal definition just reinforces Noah’s point.

      • MinskyMinded says:

        I am not redifining inflation, I am just point out that some prices are higher than they would otherwise be due to printing money and deficit spending.

        Are you say there was no effect on any prices?

        Imagine something was priced at 10 and was heading to 5. Massive money printing kept the price at 8. Is 8 higher than 10? No, no inflation. Is 8 higher than 5? Yes, inflation.

      • MinskyMinded says:

        In WP Bernanke editorial, note the order in which he lists the effects of the Fed’s policy, Mr “Choose His Words Carefully” notes first how effective their policy has been on stock prices, second their effect on interest rates.

        “This approach eased financial conditions in the past and, so far, looks to be effective again. STOCK PRICES ROSE rose and long-term interest rates fell”

        “And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion. “

  5. VennData says:

    Andresson’s talking his book, his sweetheart deals, and making up BS.

  6. willid3 says:

    maybe i missed some thing in that story about ‘surging millennial surging as buyers of houses. but there doesnt seem to be any thing in the story that matches that

    also coming soon

    your face will show how old you might get

    and nothing can go wrong with that right? insurance companies wont use it to set your premiums now will they?

  7. Jojo says:

    A day in the new Porsche Macan, an SUV that wants to race
    Porsche says the mixed lineage of the Macan will appeal to a new type of buyer.

    by Megan Geuss – July 2 2014, 6:00pm PDT

    PASADENA, CA–At the upscale Langham Huntington Hotel, Porsche executives welcomed a small group of journalists to get some drive time with the new Porsche Macan (pronounced Ma-CAHN not Mak-ann). Outside the hotel, about a dozen Macans were parked around a bubbling fountain. After a quick product briefing, the journalists split into pairs and grabbed a car–we were going out on the open road.

    The Macan is the latest in a series of “crossover” SUVs that started arriving on the automotive scene a decade or so ago. As Porsche’s first, the Macan is significant in showing that the company is ready to try new things to get to American buyers. So far, it’s working. During the press briefing, von Platen said that Porsche North America had had “a very positive development of the US market” in 2012 and 2013. The Macan, Porsche hopes, will keep that trend going.

  8. Jojo says:

    Bloomberg Businessweek
    Puerto Rico: Tropical Tax Haven for America’s Super-Rich
    By Katherine Burton
    June 26, 2014
    It’s 2 a.m. at the La Factoria bar in Puerto Rico’s Old San Juan, a hipster joint with a sagging couch, tile floors, and Christmas lights that wouldn’t be out of place in Brooklyn’s Williamsburg. While Get Lucky plays, tipsy couples slink out the doors onto the colonial city’s cobblestone streets and into this warm April night. At the bar, a 28-year-old hedge fund trader—the type of person who posts his SAT results on his LinkedIn page—is ranting about the tax code. He’s obsessed with it, complaining that the U.S. is the only major country taxing citizens on their worldwide income, no matter where they reside. That’s why he moved here.

    Struggling to emerge from an almost decadelong economic slump, the Puerto Rican government signed a law in early 2012 that creates a tax haven for U.S. citizens. If they live on the island for at least 183 days a year, they pay minimal or no taxes, and unlike with a move to Singapore or Bermuda, Americans don’t have to turn in their passports. (Puerto Ricans are U.S. citizens but cannot vote in federal elections.) About 200 traders, private equity moguls, and entrepreneurs have already moved or committed to moving, according to Puerto Rico’s Department of Economic Development and Commerce, and billionaire John Paulson is spearheading a drive to entice others to join them.

    • willid3 says:

      guess he doesnt know that Puerto Rico is part of the US?


      ADMIN: Different tax treatment

  9. rd says:

    Can the increasing percentage of people going to college and university be creating data misinterpretation that leads to erroneous headlines? It has been pretty clear that more people have been going to post-secondary education over the past couple of decades while other trends have also been getting noticed and getting big splashes in headlines. Her e is an article that looks at the data behind “more millenials living at home with their parents”. It turns out that living in campus housing counts as living at home with your parents, so more university students means more people living with their parents even if they are not physically there for two-thirds of the nights.

    Similarly, we keep seeing that a college education pays off with big lifetime bucks (a key thing the colleges themselves hype in marketing materials). However, I don’t think anybody has ever statistically compared that to the position of people in their high school graduating class. I think it would be reasonable to assume that, historically, people attending college have tended to come from the upper deciles of academic performance in high school. It is likely that these people have IQ, EQ, and “grit” levels that are more suited to work habits and abilities that will generally earn them more money, with or without a college education. It is not as clear to me that taking somebody from the mid-tier or lower levels and sending them to college will automatically jack their lifetime earnings up to the same levels at the top decile of students. A recent paper looked at the impact of attending elite universities compared to simply applying to them and found that students with the inclination to just apply to top universities, but didn’t attend them, generally did as well as the students who actually went to them (minorities were an exception to this rule).

    So I have a fundamental question. Are the students who would not have gone to college 20 years ago because of relatively poor academic standing really going to be better off if they do go? Especially if they end up incurring significant debt in order to attend and graduate? Will we see the continued evidence of the benefit of college on a large scale or will we start to see more reversion to the mean behavior of the data set?

  10. ilsm says:

    Porsches, potholes and patriots, Mr. Babbit.

    Babbit is probably clipping Lockheed coupons so it don’t matter to him that the largest part [$400B in contracts in 12101] of US government ineptitude is run through the pentagon. He likely don’t worry about the latest pentagon aerospace vehicle version of the Porsche made by Lockheed which happens to catch fire in the fuel spaces.

    The USAF has grounded theirs until someone comes up with a root cause and an inspection scheme to fix the issue. The US Marines are flying 2 of their version the F-35B to an air show in Britain because the problem has only been found in the past weeks and so the fault is not so bad as to get in the way of replacing their old widow-maker the Harrier made by Douglas on license from the Brits.

    If his Lockheed dividend clipping were less maybe the potholes would be less………

    It used to be jet noise was the ‘sound of freedom’, now potholes is the price of Lockheed dividends.