Good morning, Here are my post Fed day morning train reads:
• We’re on the verge of a crisis, bears warn (Money)
• The Superinvestors of Unconstrained Bondsville (SSRN)
• Would Keynes Have Been Fired as a Money Manager Today? (A Wealth of Common Sense)
• Investors Rethink Taking a Leap Into Junk Bin (WSJ)
• The CEO Who Saved a Life and Lost His Job (Bloomberg)
My favourite indicator went up/drifted higher in the last weeks but now it’s heading down again. And that’s not surprising given the bearish news coming from all around the globe. It was highly overdue to turn lower. I was surprised to see it drifting higher. Now another indicator has to kick in, i.e. turning bearish.
Ivanka Trump Shares 3 Tips For Achieving Massive Success
1) Have Fred Trump as your grandpa
2) Lay low until you get into Penn.
3) Hire a publicist
http://www.businessinsider.com/ivanka-trump-tips-to-achieve-success-2015-1
Re: Clean Water – $1 billion.
It is odd that living in a desert next to the ocean could result in expensive fresh water.
Clinton caused the housing bubble!
http://www.businessinsider.com/us-budget-surpluses-stoking-us-housing-bubble-2015-1
ROFL! Mr. Blodget needs to cull the herd over there at BI. Start with this Thomas Hirst who mendaciously cites an NBER paper to support another GOP concoction.
Republicans live in a fantasyland of BS.
Looking at it another way, it appears to support the concept of running large deficits in government as a way to prevent bubbles and financial crises. I assume that is why the Republicans are so focused on avoiding deficits now.
The tooth-gnashing about whether or not the Fed will raise the Fed Funds rate later this year is amusing but annoying.http://blogs.wsj.com/moneybeat/2015/01/29/graphing-new-fed-voters-versus-old-suggests-rate-hike-isnt-looming/
Do these people really believe that the Fed would be signaling right now that they won’t raise rates later this year? Much of what the Fed has to do is as much con (as in confidence) game as much of anything. If they put in their Fed minutes now that they probably won’t raise rates later this year becuawe the US and global economy sucks, then they would get trampled in the hallway by the panic selling and loss of business confidence that would virtually guarantee recession and a bear market.
Arithmetic Is Very Simple, But It’s Still True
Steven Rattner doesn’t like people focusing on stimulus as a path to help Europe grow because it is “simplistic.” Instead he wants Europe to focus on reducing business regulation, protections for workers, and taxes for the wealthy.
Interestingly, he presents zero evidence that these changes will boost the continent’s growth, …In some cases, his complaints not only lack evidence, but they defy logic. ….
NB: Ratner’s editorial is as ignorant as it is self-serving but one would need to peruse the well-deserved trashing he gets in comments as well as from expert analysis to appreciate just how much this putative Titan of Finance gets wrong not only in terms of facts, economics and logic, but in terms of moral qualia. Truly stunning.
An interesting report on the potential impact of climate change on the “Heartland” otherwise known as the Midwest. It may not be farmers deciding the Iowa caucuses at the end of the century. At that time, we may also not be hearing horror stories about how the death tax is preventing family farms from being passed down.
BTW – a co-chair of the organization is that bleeding heart socialist liberal Henry Paulsen so we will need to get the appropriate refutations from died-in-the-wool conservatives.
http://riskybusiness.org/uploads/files/RBP-Midwest-Report-WEB-1-22-15.pdf
BTW – there is good news in the report – they expect to have fewer hypothermia deaths in the winters.
re: clean water
The solution to Southern California’s water problem requires increased efficiency in agricultural and urban water use, better capture and storage of storm water, and the use of recycled urban waste water, in addition to desalination. The first three strategies offer more potential water at a lower cost than desalination, which is energy intensive and has potential environmental costs.
I lived in southern California for a while. My take was that they had firmly adopted the “spice mélange economy” part of Frank Herbert’s Dune but not the ecological and water conservation concepts in it. http://en.wikipedia.org/wiki/Dune_(novel)
I moved there from areas with copious fresh water available but I had never before seen water wasted like I saw in Southern California.
Super Bowl security has improved to the point that Rich Dion needs to buy a ticket to get in.
http://www.rollingstone.com/culture/features/the-super-bowl-scammer-dion-rich-is-the-godfather-of-gatecrashing-20150129
“It may not be farmers deciding the Iowa caucuses at the end of the century.”
I didn’t see anything like that in the report, just that it will get hot and there will be more crop failures, nothing about demographic change.
BTW, Chicago is projected in the report to become even more Beirut-like than it is now.
Crop failures usually implies less farmers unless subsidies get increased.
Breaking Into Startups: From Cello to Investment Banking to AltSchool (medium)
The new Bloomberg mobile site is terrible. You get one headline and have to continually click down through one headline per page.
BR, please tell them. And the desktop site is no better.
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ADMIN: BR says “I like it!”