10 Friday AM Reads

Yesterday was my bad, for mentioning what a “quiet, uneventful week” it was; no matter, its Friday, and that means the weekend is almost here. Finish the week strong with our morning train reads:

• May 1994 – What Happened When the Fed Last Diverged With Europe (Bloombergsee also Boom times for US corporate bond sales (FT)
• The Economy Is Better — Why Don’t Voters Believe It? (FiveThirtyEight)
• What Interest Rates Can Teach Us About Behavioral Biases (A Wealth of Common Sense)
• SEC Nominee Works at Think Tank Dedicated to Blocking SEC Regulation (The Intercept)
• Pethokoukis: A last hurrah for Republican tax slashers (FTsee also What Republicans Get Wrong About the Gold Standard (Real Time Economics)

Be sure to check out our Masters in Business interview this weekend with David Rosenberg, chief economist at Gluskin Sheff.

Continues here



Category: Financial Press

1962 Ferrari 250 GT SWB: “A uniquely beautiful car”

  Source: Classic Driver

Category: Weekend

The New Overnight Bank Funding Rate

The New Overnight Bank Funding Rate Marco Cipriani, Julia Gouny, Matthew Kessler, and Adam Spiegel The Federal Reserve Bank of New York will begin publishing the overnight bank funding rate (OBFR) sometime in the first few months of 2016. The OBFR will be a broad measure of U.S. dollar funding costs for U.S.-based banks as…Read More

Category: Think Tank

Stephen Moore Unwittingly Advocates for Higher Minimum Wages

@TBPInvictus here.

In the wake of last Friday’s October jobs release, conservative economist Stephen Moore (Heritage Foundation, Club for Growth) did a quick hit on Fox Business news with Maria “Should We Believe These Numbers?” Bartiromo (yes, she actually said that).

Before getting into the jobs numbers themselves, Moore laments the fact that sometimes, on Wall St., good news is bad news. In this case, stock futures had turned lower on the near-pristine report because of a “fear” that it will provide further inducement for the Fed to hike in December. (In this regard, I agree with Moore – good news in this case should be perceived as good news, not bad. If the economy is continuing to gain strength, that should be a positive, not a negative. That said, I still think the Fed should hold off.) Moore’s argument that more and more jobs enable a virtuous cycle (i.e. why the jobs report is good news) went like this, by my transcription. This comment begins at the 00:35 into the clip (emphasis mine):

Let me make it very clear to people cause this is very simple as an economist: If people have more jobs, if they’re earning more money, guess what? They can go into stores and they can buy more things and the value of stocks goes up.

Very simple indeed, is it not?

Read More

Category: Current Affairs, Economy, Employment, Wages & Income

Hedge Funds Top Goal Ain’t Performance

From CIO, comes this article, headlined AUM Growth Is Hedge Funds’ #1 Goal, along with this fascinating chart. The article ain’t headlined Performance is #1, so what they really mean are fees.   Source: Chief Investment Officer

Category: Hedge Funds

Gold Miners Index Down 30% Since 1993 Inception

If you wanted to own gold in the bad old days, there were only a handful of choices: You could take physical delivery (but if you needed any size, you would incur costs for storage and security); you could buy futures contracts, but they also incur steep expenses; or you could buy the gold miners,…Read More

Category: Gold & Precious Metals, Index/ETFs, Trading

10 Thursday AM Reads

I have become unaccustomed to quiet, uneventful weeks. Lets see if it can keep rolling for two miore days. In the meanwhile, our gluten-free morning train reads: • A History Of Insane Art Prices (Digg) • Do People Want to be Fooled? (Irrelevant Investor) see also Underestimating the Power of Compound Interest (A Wealth of Common Sense) • The Misery Index…Read More

Category: Financial Press

Are Millennials Financially Screwed?


Source: Bloomberg


Category: Credit, Economy, Finance, Video

Category: Think Tank

Short-Term Thinking

From Dealbook: From Wall Street to Washington and in the towers of academia, people are buzzing about what some say is the pernicious focus in corporate America on short-term profits. To understand the debate, it helps to understand the various forces that contribute to the pressures on companies to focus on short-term financial results. Those…Read More

Category: Corporate Management, Digital Media