Dr. Keynes Was Right

It's the Distribution, Stupid
SEPTEMBER 24, 2014 9:52AM

Welcome Back Gumby

Some time back, I predicted that the flip phone would rise, Phoenix like, from the mire of smartphone muck.  These 5+ inch behemoths just won't work very well.  Some curved screens have appeared, but now we get word that the 6/6+ are spontaneously bending.  I told you so.  There a… Read full post »

SEPTEMBER 15, 2014 4:05PM

Up The Down Staircase

I'm not a fan of David Stockman, to say the least.  But recent punditry on the subject of interest rates, asset prices, and bubbles led me to the obvious question:  is it true, as it appears, and in the data; that corporations (that is to say, their capital allocators) are executing… Read full post »

SEPTEMBER 5, 2014 12:41PM

Alice In Wall Street

Financial engineers, despite their pronouncements of math/stat/coding wizardry, are really just some truffle pigs and cockroaches.  The truffle pigs snuffle in the ground, generally around trees in deep parts of the forest, for the scent of the black truffle.  A valuable fungus, that black… Read full post »

AUGUST 28, 2014 12:51PM

Reservations for ... 8 billion??

Quite recently, in various versions of these endeavors, there was an essay dealing with the Old Gold vs. New Gold situation.  Not for the first time.

The hidden truth:  the country with the reserve currency of the global economy will always, in fact must, run trade deficits.  Think abo… Read full post »
AUGUST 24, 2014 5:31PM

The Poor Will Always Be Us

The environs of Washington, DC are widely excoriated by The Right as being the bastion of Liberal Evil.  Not least, the disparity of median income there being higher than most, if not all depending on the year measured, of the rest of the country.  Having lived there for the better part… Read full post »

AUGUST 21, 2014 12:41PM

Peter, Peter Pumpkin Eater

I've never been a fan of the Austrian schools, just because they're by, for, and of the .1%.  There's not much good for an entire economy in that.  In looking for data to confirm, or refute, the notion that the Captains of Industry are just playing financial engineering games with all… Read full post »

AUGUST 19, 2014 2:30PM

Between Roxbury, CT and a Hard Place

Ah, to be a Googler (or spend enough time there to know about all of its nooks and crannies):  Google Correlate powers a lengthy (the summer long?) analysis by David Leonhardt, et al of searches by the rich and the poor.  Rich and poor, in this instance, being a bespoke index.

The… Read full post »

AUGUST 17, 2014 12:49PM

An Open Letter to Dr. Shiller [update]

In today's Times Business section, Robert Shiller gives his take on stocks, specifically the question:  are they priced too high?  He titles the piece (dead trees version), "The Mystery of Lofty Elevations".  The web title is similar.

Note, of course the use of the word 'mystery'. … Read full post »

AUGUST 7, 2014 2:23PM

Sovaldi Sings Iago

For those who aren't up on Shakespeare and Rossini, Iago is a bad guy.  A really bad guy.  Sovaldi, according to some (and a growing count, by most accounts), is the archetype of Big Pharma profiteering; taking money from the many to give to the few for little or no real… Read full post »

AUGUST 6, 2014 3:26PM

Big Fish, Little Fish

The NYT DealB%k has an interesting piece from one of the regulars on the Big Fish eating the Little Fish in the cloistered world of the innterTubes.  But Solomon leaves out the lede, as they say in the pubbiz:  these Big Fish ain't really conglomerates.

The paradox is that conglomerates out… Read full post »
JULY 25, 2014 12:15PM

If It's Friday, This Must Be Krugman

Well, not this time.  He's needling the right wingnuts about various chimera, as usual.  No, but today's Business Section of the Times is full of belly laugh quotes, many of the subjects chronicled here in past missives.

Let's start with Amazon's stool dump.  As opined here in the past,… Read full post »

JULY 22, 2014 2:11PM

I Still Hate Neil Irwin

The morning, during the week, begins with a reading of briefing.com, via Yahoo! Finance, then a toddle off to the newstand for The Times and thence to the coffee place to inhale both.  Most often, these toddles involve creating the rough draft of one of these missives.  Since I don't put… Read full post »

JULY 22, 2014 12:31PM

They're Still Freedom Fries

The missives in these endeavors generally aren't reactionary to other posts out in the blogosphere; that behavior is mostly directed to news organs (I'm talking to you, Irwin).  But today brings a reference post to a post, on the subject of income inequality.  In this case, Tour de France w… Read full post »

By now y'all have heard about the Yellen remark that small cap biotech is over-valued:

Valuation metrics in some sectors do appear substantially stretched -- particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such fir… Read full post »
JULY 10, 2014 8:15AM

What A Buzz Kill

Buzz Aldrin got reported in Daily Tech from Reddit.  I don't do Reddit (a major character flaw, I know), so I'll content myself with the DT quotes.  That's all I need, anyway.

OUR resources should be directed to outward, beyond-the-moon, to establishing habitation and laboratories on the su… Read full post »
JULY 8, 2014 2:54PM

I Hate Neil Irwin

Well, only metaphorically, of course.  A few days back, I referenced a Business Section piece he did on why the Almighty Buck is so, since he was confirming previous postings in these endeavors.  Fine.  As I looked at my dead trees Times this morning I nearly fainted.  There, on t… Read full post »

JULY 4, 2014 2:03PM

Channeling Yoda

Today Krugman, finally, says it (likely, written before the Brazil World Cup road collapse, for just a touch of international irony).  The Jedi tinged title, of course.

Since 2008, however, our economy has been awash in unemployed workers (especially construction workers) and capital with no pla… Read full post »
JULY 2, 2014 3:05PM

The French Connection

Some time back, 2011 if my memory serves, I mused that the Almighty Dollar has been New Gold for decades.  Despite the 1973 oil embargo, the notion of petrobucks replacing the US buck never materialized.  Saudis don't have the nukes and such.  Being the globe's reserve currency, the op… Read full post »

JUNE 29, 2014 12:58PM

Gaol in Bermuda

My beloved Bermuda, based on just one trip and following the news remotely, has been, to my mind, a life-size petri dish for the Right Wingnuts in the USofA.  Not least because Bermuda continued on its support for The Rebel Cause of 1861 for more than a century.  The on-line 'Gazette'Read full post »

JUNE 25, 2014 9:33AM

The End of The Road

John Barth, for those reading fiction in the 60s and 70s, was a minor cult hero.  Kind of the Pynchon a half a generation before Pynchon.  Not as prolific, and most fun from his first three books, late 50s:  "The Floating Opera", "The End of The Road", and "The Sotweed Factor". … Read full post »

JUNE 24, 2014 12:59PM

Who's Your Big Brother?

To answer the question, in general it ain't the damn Gummint.

JUNE 23, 2014 2:24PM

A Capital Idea

This posting, yet another attempt to game the market, asserts that QE is, to some degree, responsible for the mess we're in:

I am open to the idea we have entered a period of structurally low volatility due to increased regulatory burden and flow on effects from the decline of institutional… Read full post »

There wasn't intended to be a Part The Second, but in reviewing (after hitting "Save", naturally) the text, the punch line and trail of breadcrumbs to same is less than obvious.  Hindsight, and all that.

Since the point of part the first was:  The quants took a beating on this one, a… Read full post »

JUNE 16, 2014 3:58PM

Data Driven to Distraction

OK, twist my arm.  It's Cantor time.

David Carr titles today's piece, "Eric Cantor's Defeat Exposed a Beltway Journalism Blind Spot" (my dead trees version has a slightly different headline).  Much of his writing is about the evisceration of newspaper staffs, but he also, obliquely, takes ai… Read full post »

In a comment to "Apps Uber Alles" in one of its myriad incarnations, ONL remarked "And the IT industry is the least labor intensive industry ever -- in the history of mankind."  I further commented that this was, sorta kinda, true but that it depends.  And would require (or I wanted… Read full post »