My morning train reads (Continues here):

Mohamed El-Erian: Investors beware: economists at large (FT)
• Top 10 Countries Hoarding Cash (Wall St. Cheat Sheet)
• Study: A hedge fund manager’s performance-based incentive fees are indicative of his or her appetite for risk and leverage rather than skill. (CIO) see also Do Incentive Fees Signal Skill? Evidence from the Hedge Fund Industry (SSRN)
• Firm Inefficiency (Overcoming Bias)

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.

15 Responses to “10 Tuesday AM Reads”

  1. rd says:

    The issues around the Highway Trust Fund are discussed in this piece. The politics are a mess. Many conservatives want to push the responsibility of bridge and highway funding onto the states. However, I don’t think the states believe that is what will happen as we are not hearing any of their governors talking about it. The two big things that I think are poorly understand about this push and I don’t see discussed in the MSM are:

    1. Many of the red states rely on the federal government for about half of their bridge and highway funding. These states are also usually claiming to be low tax havens. The conservative push to get the feds out of highway spending will change that very quickly.

    2. Many state governments have balanced budget requirements in their constitutions. Since most large projects take several years to plan and execute, they will need to get bonded to assure the project can happen. The bond payments will use disproportionately large percentages of tax revenues in recessions which will force the states to cut spending in other areas at those times, exacerbating unemployment during a recession.

    I don’t think the voters fully understand what the rhetoric means to them. I live in NYS which provides 85% of its own transportation funding, so whatever change occurs won’t impact me much personally although it may reduce how much of my federal taxes go to red states. However, the red states may be about to see a major shift in their tax structures over the five years with more volatility in their local economies.

    http://www.businessinsider.com/highway-trust-fund-bill-the-conservative-solution-2014-7

    • willid3 says:

      so they feel that the ways we did transportation funding before the 1950s was great? where it could take a month to go from one coast to the other? guess they really want to go back wards and shrink the economy.

      • rd says:

        I think the average voter believes that interstates are a natural state of affairs and don’t think about where the money comes from. In my discussions with people, many think gasoline prices have shot up over the past decade because of increasing gas taxes and don’t realize the federal gas tax hasn’t increased in nominal terms in 20 years. They just want their taxes to go down and the roads to be better – the House Republicans assure them that can happen.

      • willid3 says:

        probably true. its like the sky rocketing taxes since 2008. which only seems to have happened to some people. or that tax cut from 2003, which only really helped some, but many are convinced they got it too

  2. RW says:

    Get Me Another Bucketfull of Economic Nonsense: The Rich Boys Want to Pass the Transatlantic Trade and Investment Partnership

    Economics just flies out the window when the business interests want to get a trade deal passed. The NYT gave us more evidence of this fact in an article on the state of negotiations on the Transatlantic Trade and Investment Partnership (TTIP).

    The article tells us that the TTIP appears to be facing troubles because of the opposition of environmental and consumer groups and the recent spying scandal in Germany. This opposition is presented as sort of tragic given the need for a deal: …

    …if the agenda of TTIP were simply removing actual trade barriers …the deal could probably be concluded and approved fairly quickly. However, these trade barriers are a small portion of the TTIP agenda. The weakening of consumer, safety, and enviromental regulations to make them more friendly to corporations is the main point of TTIP. Powerful business interests are happy to hold the real but modest economic gains from freer trade hostage in order to advance their regulatory agenda.

  3. hue says:

    Misery Political Theater 3000: Boehner is suing Obama so he doesn’t have to impeach him (Vox)

    Greenberg: Twitter IS Too Arcane (TheStreet) Just Like Facebook, Twitter’s New Impression Stats Suggest Few Followers See What’s Tweeted (Marketing Land) shouting into the void

    What’s so offensive about Esquire’s praise of 42-year-old women? (LATimes) in praise of the 16-year- through 99-year-old women? Centenarians will be outraged

  4. hue says:

    Comcastic Service Disconnection (Soundcloud) welcome to the occupation

    • hue says:

      http://on.mash.to/1re8L9f scroll to the bottom to see the rogue employee defense. yeah, right, it’s a business practice …

      anybody who’s dealt with any old baby bells knows about monthly bills with the huge mysterious fees, you call them and spend at least an hour to get the fee off, only to see it again on the next bill!

  5. couragesd says:

    German NSA investigative committee uses typewriters to avoid spies
    http://www.slashgear.com/german-nsa-investigative-committee-uses-typewriters-to-avoid-spies-15337352/

  6. SkepticalOx says:

    Just finished the first ‘Masters in Business’ with Jeff Gundlach (the hour long version). Awesome show! Can’t wait for the next ones!

  7. rd says:

    A Swiss banker is finding it difficult to defend himself on assisting tax evaders because his potential witness in Switzerland don’t want to come to the US to testify for him. I believe the South American drug cartels had similar issues.

    http://blogs.wsj.com/moneybeat/2014/07/15/former-ubs-executive-having-trouble-bringing-spooked-witnesses-to-u-s/

  8. James Shannon says:

    Hoarding CASH – what does that really say! Too much cash or no good investments or a lousy economy or too much risk or a Failed Tax Code or Individuals hoarding cash out of fear the deal will blow again! This is an extremely bad sign, “fire in the hole”!