Thursday, January 21, 2016

Some links from Josh Brown and Barry Ritholtz

Usually, Josh Brown and Barry Ritholtz aren't worth reading. But when things get tricky, suddenly they quit with the crap and start providing valuable insights:

The Reformed Borker (Bork Bork Bork!) - it's correction Twitter! I guess you could use that as a contrary indicator, no? I mean, Google Trends is so 2013, right?

Bloomberg - Saudi currency is COLLAPSING OMG. Wow, this would be a world-shaking story, if only Saudi Arabia wasn't a useless mud-hut backwater that does nothing whatsoever for the world economy beyond pumping oil, funding mass-murdering religious psychopaths, and providing a generous source for Bangladeshi remittances.

Ambrose Evans-Pritchard - WHAARRRRRGARBL. Apparently Ambrose found someone at Davos who thinks the world is on the cusp of a massive repudiation of debt. Then he spent the next couple hours laundering the spooge out of his pants.

Joe Fahmy - two scenarios from here. He's a good read, because he posts rarely and is always happy to sit on the fence til he finds conviction.

The Reformed Borker (Bork Bork Bork!) - everyone's a closet technician. Except some do it well, while others are clowns. The first and most important two indicators are volume and price, guys.

NY Times - China's factory slowdown. This is the money shot about the Chinese economy, for me:
While there are still many active factories in Dongguan, the main ones succeeding are increasingly high-tech and less reliant on large staffs.

After working 15 years at an automotive plant in Alabama, Michael Recha moved to Dongguan in 2012 to set up a specialized factory for car parts, one of the first of its kind in China. Owned by Gestamp, a Spanish automotive component maker, the factory uses a technology called hot stamping to form metal sheets into precision parts like car bumpers and body panels for both local and foreign carmakers.

But robots do an increasing share of the work. The factory employs just 400 workers working two shifts a day.

“China is no longer a low-cost country, so we have the same robots and equipment here” as in Europe, Mr. Recha said.
So within China, higher wages are driving industries to invest in capital to improve the marginal product of domestic labour? Hey, didn't I read something about that sort of thing in a development economics textbook? I think the story is that this ends well.

Caltech - investigators find evidence of a new ninth planet. It's a mysterious giant planet on a bizarre, highly elliptical orbit. I have only one thing to say about this:


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