Really dunno how I did on that macro test last night. Oh well, doesn't matter, I now have a week off from school.
We've got some catching up to do:
Calculated Risk - Bernanke's book is a hum-dinger. Damn, I want to buy this book:
"They blamed the crisis on the Fed and on Fannie (Mae) and Freddie (Mac), with little regard for the manifest failings of the private sector, other regulators, or, most especially, Congress itself. They condemned bailouts as giveaways of taxpayer money without considering the broader economic consequences of the collapse of systemically important firms. They saw inflation where it did not exist and, when the official data did not bear out their predictions, invoked conspiracy theories. They denied that monetary or fiscal policy could support job growth, while still working to direct federal spending to their own districts. They advocated discredited monetary systems, like the gold standards.That Ben Bernanke ain't afraid to go into the corners!
Bloomberg - the big surprise about weak US profits is how strong they are. Remember just a few days ago when certain doomer blogs (like BI) ran stories about how the US was heading into a profit recession? Yeah, well here's another reason to never read those garbage blogs ever again:
“I simply don’t see U.S. corporate earnings peaking -- quite the contrary,” said Ross Yarrow, director of U.S. equities at Robert W. Baird & Co. in London. “The S&P 500 is too narrow to show the true health of corporate America. It’s too skewed. Lower oil prices feed into so many raw-material costs, and that is very, very good for the rest of U.S. corporates.”Again, block Business Insider so you never get tempted to read their idiotic doomer bullshit ever again.
Krugginator - the China debt fizzle. Hey, remember when China was going to stop buying US debt, and that would be the start of a horrible debt spiral?:
Obviously, terrible things would happen if China stopped buying our debt, or worse yet, started to sell off its holdings. Interest rates would soar and the U.S economy would plunge, right? Indeed, that great monetary expert Admiral Mullen was widely quoted as declaring that debt was our biggest security threat. Anyone who suggested that we didn’t actually need to worry about a China selloff was considered weird and irresponsible.Oh, you!
Well, don’t tell anyone, but the much-feared event is happening now. As China tries to prop up the yuan in the face of capital flight, it’s selling lots of U.S. debt; so are other emerging markets. And the effect on U.S. interest rates so far has been … nothing.
Who could have predicted such a thing? Well, me.
WSJ Moneybeat - Morgan Stanley turns bullish on WHAT NOW? Apparently, they're calling the bottom on miners. Look out y'all, Whitey's about to jump his fat honky ass back into the kiddie pool! Buy before he does!
Yahoo Finacne - Bill Gross to sue Pimco for hundreds of millions. God, he truly is a fucking lunatic:
Bill Gross sued Pacific Investment Management Co. and parent Allianz SE for “hundreds of millions of dollars,” claiming he was wrongfully pushed out as the bond giant’s chief investment officer by a “cabal” of executives seeking a bigger slice of the bonus pool.No, Bill. You were fired for being a fucking psychopath. People were literally scared of you. You were violating Pimco's workplace harassment and violence policy, if they had one. Grow up.
“Driven by a lust for power, greed, and a desire to improve their own financial position and reputation at the expense of investors and decency, a cabal of Pimco managing directors plotted to drive founder Bill Gross out of Pimco in order to take, without compensation, Gross’s percentage ownership in the profitability of Pimco,” according to a complaint filed Thursday in California state court. The complaint alleges that Pimco executives’ “improper, dishonest, and unethical behavior must now be exposed.”
John Quiggin - Bitcoins are a waste of energy. Basically, the entire value of a bitcoin is tied up in the cost of the electricity that was used to create it:
In essence, the creation of a new Bitcoin requires the performance of a complex calculation that has no value except to show that it has been done. The crucial feature, as is common in cryptography, is that the calculation in question is very difficult to perform, but, once done, is easy to verify.And thus bitcoins cause pollution.
In the early days of Bitcoin, the computations in question could be performed on ordinary personal computers. Nowadays, however, 'miners' use special purpose machines optimised for the particular algorithms used by Bitcoin. With these machines, the primary cost of the system is the electricity used to run it. That means, of course, that the only way to be profitable as a miner is to have access to the cheapest possible sources of electricity.