10 Wednesday AM Reads

This morning’s train reads were prepared with a heavy heart, but no worries, we still have you covered:

• The Nasdaq is doing the most bullish thing a market can do (MarketWatchbut see As FTSE Hits a 15 year Record, Beneath the Surface . . . (Moneybeat)
• Climbing the Great Wall of Worry in China (Market Anthropology)
• The Winners Curse: Too Big to Succeed? (SSRN)
• The active fund management model is not fit for purpose (FTsee also Yes, the World Is Out to Get Active Managers (BV)
• The Entrant’s Guide to The Automobile Industry (Asymco)

Continues here



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What's been said:

Discussions found on the web:
  1. catclub commented on Feb 25

    1. That Asymco article is deeply insightful.

    2. It looks like there are 401k plans with negative fees in the range between
    $100M and $1B plan assets. I think that figure explains very little. Why are there ANY plans with small assets and low fees?

  2. VennData commented on Feb 25

    Math confuses Republicans

    “…The House keeps sending to the Senate a bill it knows cannot be passed by the Senate. And when Mr. Boehner said to you the House has to do its work, that’s not its work to send this — futile gestures that make the Republican base feel good. … We can’t explain to the Republican base how the system works. Well, they better learn how to explain that. That’s called leadership…”


  3. RW commented on Feb 25

    The curious incident of the wage and price data not barking in the night

    As Holmes was guided by evidence of what didn’t happen, so must we ask why nominal wage and price growth remain flat even as the unemployment rate is telling us we’re just about at full employment. I can think of three reasons.

    One, the “full-employment unemployment rate,” or FEUR, is lower than we think. Two, we are mis-measuring labor market slack. Three, economists fundamentally misunderstand these dynamics; i.e., we’re working off of historical correlations to which the data no longer conform.

    I’ve written extensively about #1 (here and here

    Point #2 is what I’d like to talk about today. There are times when the unemployment rate is not up to the task of capturing the true amount of slack in the labor market. ….

    • willid3 commented on Feb 25

      i have suspected that wage stagnation was the goal, not an accident, cause it drives the tax regime, and the constant non job creation bills. but maybe i am too cynical

  4. VennData commented on Feb 25

    Bill “War Zone” O’Reilly…


    Rupert Murdoch will krep him. How many people can you find willing to be whores for the ‘tax cuts for the rich at any cost’ people?

    Oh, I guess there are a few…


    Lap it up GOP voter.

  5. DiggidyDan commented on Feb 25

    A million crooked bankers and mortgage brokers get off scott free, and the government is using their Sarbanes-Oxley Act to go after decrepit fishermen instead. . . Unbelievable!


    U.S. Supreme Court Overturns Conviction of Cortez Fisherman Charged with Throwing Fish Overboard

    “Federal prosecutors charged Yates under the Sarbanes-Oxley Act of 2002, which was enacted as a reaction to several financial crimes . . . A federal jury convicted Yates of disposing of the undersized fish and destroying fish to obstruct a federal investigation. He served 30 days in jail. The Supreme Court ruled 5-4 to overturn Yates’ conviction. Justice Ruth Bader Ginsburg wrote in the main opinion that fish did not constitute a “tangible object,” under the Sarbanes-Oxley Act.”

  6. RW commented on Feb 25

    Allan Meltzer on Imminent Inflation, and Other Topics

    Speaking of people who had not done their homework, were spreading lots of wrong information, and who lack the ovaries to have ever marked their beliefs to market or apologize for their purveying misinformation, we have Allan Meltzer starting in February 2009. It is a real clown show.

    I paraphrase:

    . Inflation is coming! (February 2009)
    . Inflation is coming! (May 2009) …

    . Inflation–or recession, or both–are coming! Eliminating excess reserves without causing inflation, recession or both is a major problem. The Fed’s major error is its baffling inattention to the growth of monetary and credit aggregates… (February 2015)

    So: three questions:

    1. At what point should Allan H. Meltzer have stopped saying “inflation is coming!” and started saying: “the …Keynesians with their liquidity trap have had a better handle on the economy, than I have; I should be quiet for a while, learn, and think”? …

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