10 Tuesday AM Reads

May 12, 2015 7:15am by

Futures are red as the bond market starts recognizing that nothing goes in one direction forever. Except our morning train reads — they just keep getting better:

• Top 50 US boardroom hoarders sit on $1tn in cash (FT)
• The View from the Front Seat of the Google Self-Driving Car (Medium) see also Why there won’t be an Uber in every industry (Fortune)
• Labor force participation: Is a trend or a cycle at work? (FRED Blog, St. Louis Fed) see also Millennials Become the Biggest Generation in the U.S. Workforce (Real Time Economics)
• Cost Obsessions Around the World (Fixr)
• 27 health tips that are actually backed up by science (Business Insider)

Continues here

 

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    • VennData commented on May 12

      “…We already know from painful experience: in 2007, it was the inability of some mutual funds to price their subprime debt holdings that compelled them to limit withdrawals and sent everyone in the global financial system scrambling for liquidity (and for government backstops when they couldn’t find it)…”

      And why? Because Bush’s Ownership Society allowed everyone to lever up and “insure” their risk against bank default in the “Light-Touch” regulatory regime of London.

      And the banks just won the ability to keep their swaps off exchanges to make the market more opaque in the arrow-in-the-sky complaints about “Regulatory overreach” by Dodd-Frank.

      http://fortune.com/2014/12/15/wall-street-dodd-frank-elizabeth-warren/

      “…How big of a loss did financial reformers sustain in its latest battle with Wall Street? It comes to 0.5% of bank assets. Put another way, if JPMorgan Chase was an average American household and not a bank, regulators just made it legal for the Chases to risk an additional $400 at the races. Have fun…”

      And No Fortune it’s not a small loss, WE are now responsible again for Big Bank Swaps. which are LEVERAGED BETS!

    • hue commented on May 12

      there goes the white man crush

  4. VennData commented on May 12

    Christie: Obama, Fed have worsened U.S. inequality

    http://www.reuters.com/article/2015/05/12/us-usa-election-christie-idUSKBN0NX1NO20150512

    See if Democrats cut deficits and the Fed gives interest rate cuts to everybody that’s bad. The interest rate cuts that the rich get don’t really create “enough” new jobs, (even though there are five million job openings)

    But it the Republicans’ give TAX CUTS to the rich and deficits rise then Reagan’s miracle trickle down works.

    See? See the difference?

  5. RW commented on May 12

    Q&A with Wes Gray on value and momentum – part one

    A recent paper by Cam Harvey and his co-authors on the statistical validity of many so-called finance anomalies has attracted a great deal of attention in quantitative finance crowd. It seemed worthwhile to discuss the implications of the paper with one of our favorite quants, Wes Gray of Alpha Architect and manager of the ValueShares US Quantitative Value ETF ($QVAL) and the ValueShares International Quantitative Value ETF ($IVAL) ….

    …academics have thoroughly investigated most of these anomalies. Also, from a cultural standpoint, it is somewhat taboo to write about market inefficiencies and conduct “anomaly chasing.” … It’s safe to say that making an academic career out of publishing papers based on so-called profitable trading strategies are numbered.

    Q&A with Wes Gray on value and momentum – part two

    The emergence of transparent, simple, and effective asset allocation tools is a development that is good for investors and bad for those elements in the financial services industry that are slow to adapt. The emergence of the so-called “DIY Financial Advisor” is here to stay. But the DIY Financial Advisor movement is a small element embedded in a larger theme: the disintermediation of the entire financial services industry.

    …when I speak to my friends who manage endowments, pensions or large family offices, I get blank stares when it comes to technical market timing rules. They think I’m crazy. However, when I speak to my PhD buddies who work at large asset management firms, they are well aware of the benefits of technical trading rules, but few actually implement them in practice. …

    It turns out that just because you are aware of a reasonable investment approach, doesn’t mean you will put it in to practice. Incentives matter and work in mysterious ways. Strategies that work aren’t comfortable and often force an investor to do things that put them in a position to lose their job.

  8. VennData commented on May 12

    King’s Absence at Meeting Signals a Saudi-U.S. Marriage Adrift

    “…For Mr. Obama, a diplomatic agreement with Iran curbing its nuclear program offers the strongest chance of keeping conflict in the region from escalating. For the Sunni-led Saudi government, the relaxation of sanctions in the proposed deal would simply give Iran, a predominantly Shiite state, billions of dollars to foment more instability around the region…”

    http://www.nytimes.com/2015/05/12/us/politics/kings-absence-at-summit-signals-saudi-us-marriage-on-rocks.html

    So Saudi Kings you actually think you’ll be able to keep the coalition that is boycotting Iran oil exports together? Thee guys are as naive as Netanyahu.

  9. hue commented on May 12

    TKO: anesthesiologists losing sleep over new machine (WaPo http://wapo.st/1G34nk8)

    The Policy Machine: The dangers of letting algorithms make decisions in law enforcement, welfare, and child protection. (Slate http://slate.me/1Iw5oTJ) Forbidden Data: Wyoming just criminalized citizen science. (Slate http://slate.me/1K4kD6S)

    Retirement Plans: Americans Spend $70 Billion on Lotteries, more than books, video games, movies & sporting events (The Atlantic http://theatln.tc/1ExH6SJ)

  10. VennData commented on May 12

    Atlantic says, “Several of the world’s center-right parties have modernized in ways the GOP hasn’t.”

    Anyone who thinks today’s GOP is center-right is delusional.

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