econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



>> Click Here for Historical Wall Post Listing <<

What We Read Today 21 August 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

  • German manufacturing PMI falls less than forecast in August (Investing.com) German manufacturing appears to be a little stronger in August than expected. The Flash (preliminary) Markit PMI (Purchasing Managers' Index) came in at 52.0, down from 52.4 in July, but better than the 51.8 expected.

  • Articles about Ferguson:

Cop to Ferguson protesters: "I will fucking kill you… Go fuck yourself" (German Lopez, Vox) Includes video.

Trigger happy (D.K., The Economist) Hat tips to Michael W. Hudson and Jesse Drucker. Officer Darren Wilson fired twice as many shots at Michael Brown as did all British law enforcement officers for all of 2013.

7 Documentaries You Can Stream Right Now To Better Understand What's Going On In Ferguson (Lauren Duca, Huffington Post)

How for-profit policing led to racial disparities in Ferguson (German Lopez, Vox)

  • Articles about wars elsewhere:

Air strikes again batter Gaza as peace negotiations collapse (Orlando Crowcroft and Hazem Balousha, The Guardian)

Sides trade blame over Gaza truce breakdown (Al Jazeera)

Iraq crisis: EU backs plans by member states to arm Kurd fighters (Matthew Weaver, The Guardian)

Western intervention over Isis won’t prevent the break-up of Iraq (Paddy Ashdown, The Guardian)

Before we start a new war with ISIS, let’s remember how we stumbled into the last two (Fabius Maximus)

ISIS Pressed for Ransom Before Killing Journalist (Rukmini Callimachi, The New York Times)

The Only American Fighting for Ukraine Dies in Battle (Simon Ostrovsky, Vice News)

Ukraine warplane shot down as clashes kill dozens (Nicolas Gaudichet, Yahoo! News)


There are 12 articles discussed today 'behind the wall'.

Please support all that we do at Global Economic Intersection with a subscription to our premium content 'behind the wall'.

There are between 75 and 100 articles reviewed most weeks. That is in addition to the 140-160 articles of free content we provide.

You get a full year for only $25.


  • China housing markets (Walter Kurtz, The Daily Slot email, no url)

china-housing

  • The Rise and Fall of General Laws of Capitalism (Daron Acemoglu and James Robinson, MIT Dept. of Economics) The authors use historical data from two countries to show that all general laws of economics are unhelpful as a guide to understand the past or predict the future, because they ignore the central role of political and economic institutions in shaping the evolution of technology and the distribution of resources in a society. These authors argue that institutional factors have much more influence on inequality factors than does the relationship Piketty develops in his book. See also next article.
  • The Victors Write the History Books, Even in Finance (David Merkel, The Aleph Blog) David Merkel has contributed to GEI. The graph below is one that Merkel finds revealing. He says that stock buybacks area form of leverage for a company: buy to increase leverage and don't buy to maintain (or if they're making money and retaining earnings) to reduce it.
A lot of what passes for investment knowledge is history-dependent, and may not serve us well in the future. Further, a certain amount of it is misinterpreted, or, those writing about it, even really bright people, don't understand the hidden assumptions that they are making. I'm going to clarify this by commenting on three graphs that I have seen recently - two that I think deceive, and one that I think is accurate.

buy-backs-aleph-2014-aug-21

  • Saving Horatio Alger: Equality, Opportunity, and the American Dream (Richard V. Reeves, Brookings Institution) The sad fact is that "the land of opportunity" has unequal realization of that opportunity based on circumstances of birth. This lengthy but very readable essay is too complex to characterize with a brief excerpt but we will give one anyway:

For the first time ever, most parents in the U.S. think their children will be worse off than themselves, according to polling by the Pew Foundation. Two-thirds of Americans think the gap between the rich and the rest of society has grown in the last decade, and the same proportion believe government should do more to close this gap (although there are sharp differences of opinion between Democratic and Republican voters on this score). Faith in the Horatio Alger ideal remains, but has been shaken. Sixty percent of American adults still think "most people who want to get ahead can make it if they are willing to work hard," down from 68 percent in 1994.

Optimism about American opportunity may fade further as meritocracy comes under pressure from two sides: a growing economic divide between earned income and inherited wealth; and a growing social divide, marked by differences in family structure, education, and community.

  • 40 charts that explain money in politics (Andrew Prokop, Vox) A data mine on how the U.S. government is bought. Here is one graph showing the three-fold increase in money spent on buying government over the last four presidential election cycles. Hit the title link for the other 39.

spending-politics-1997-2012-600px

  • US State Breaks Ground on a "Perfect" Solar + Storage Microgrid that Can Provide Resilient Power (Jennifer Runion, RenewableEnergyWorld.com) Hat tip to Reverse Engineer, Doomstead Diner. Vermont is the first state to start a project that combines solar and energy storage in a microgrid, funded through a unique federal-state-utility-NGO partnership. The storage will use both lead-acid and lithium batteries. The facility is expected to be completed and operational by December this year. (Econintersect: Just in time to provide employment to snow shovelers to keep Vermont's copious snowfalls off the solar panels.) For more about microgrids (aka distributed energy resources) read A Requiem for Today’s Grid (Mahesh, Bhave, RenewableEnergyWorld.com).
  • There Isn’t $10.8 Trillion “Stuffed Under Mattresses” Because of QE (Cullen Roche, Pragmatic Capitalism) The idea that QE put money into the economy is simply not true. In fact, because Treasuries (which pay interest) were exchanged for bank reserves (which pay very little interest) the result of QE was actually to take what would have been paid in interest to the public each year and returning it to the government.

shiller-cape--10-year-returns-DeLong-Annotated

shiller-cape--10-year-returns-DeLong-losers


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.






Econintersect Behind the Wall



search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Angst in America, Part 5: The Crisis We Can’t Muddle Through
Was Marx Right?
News Blog
Kim Jong Un Pretends To Fly An Airplane
21 April 2017: ECRI's WLI Growth Index Continues to Slow
Final April 2017 Michigan Consumer Sentiment Continues Positive Trend
April 2017 Chicago Purchasing Managers Barometer New Orders Close To Three-Year High
Advance Estimate 1Q2017 GDP Quarter-over-Quarter Growth at 0.7 Percent.
Rail Week Ending 22 April 2017: Marginally Slower Week
March 2017 Median Household Income Not Significantly Different
Infographic Of The Day: The Largest Company Headquartered In Each State
Early Headlines: Asia Stocks Down, Dollar, Oil, And Gold All Up, Trump Will Pay ACA $, State Dept To Cut 9%, Trump Tax Plan, UK House Prices Drop, France GDP Growth Slows, And More
What Americans Shop For With Coupons Online
Fact Check: Are A Million African Migrants Already On Their Way To Europe?
Doctor Google Will See You Now
What We Read Today 27 April 2017
Investing Blog
Think Differently For Better Trading Results
Facebook Is Coming After Snapchat From All Sides
Opinion Blog
Trump's Tax Plan Is Brilliant Politics And Even Better Economics
Facts Are Not Always More Important Than Opinions: Here's Why
Precious Metals Blog
A New Age For Gold
Live Markets
28Apr2017 Pre-Market Commentary: Wall Street Expected Top Open Fractionally Higher, But Trading Will Mirror Yesterday's Session And Remain In A Tight Band, Crude Prices Starting To Move Upward
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved