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 13 July 2015

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.

This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every day in the early am at GEI News (membership not required for access to "The Early Bird".).

BECOME A GEI MEMBER - IT's FREE!

Every day most of this column ("What We Read Today") is available only to GEI members.

To become a GEI Member simply subscribe to our FREE daily newsletter.

The rest of this post is available only the GEI Members.  Membership is FREE -  click here.


Articles about events, conflicts and disease around the world

U.S.

  • Obama Frees Dozens Of Nonviolent Federal Inmates (The Huffington Post)  President Barack Obama announced Monday that he has granted dozens of federal inmates their freedom, as part of an effort to counteract draconian penalties handed out to nonviolent drug offenders in the past.  The 46 inmates who had their sentences reduced represent a small fraction of the tens of thousands of inmates who have applied. The U.S. Justice Department prioritizes applications from inmates who are nonviolent, low-level offenders, have already served at least a decade in prison, and would have received a substantially lower sentence if convicted today, among other factors.
  • Facebook Close Sets Speed Record for $250 Billion Market Cap (Bloomberg)  Today Facebook's market value has topped $250 billion.  The record close on Monday made it the first company in the Standard & Poor’s 500 Index to breach that market cap so quickly. The previous record holder was Google Inc., which took about eight years.  Facebook made it in 38 months.

Germany

  • Germany—not Greece—will be the real loser (CNBC)  Germany is using its size and wealth to compel its euro-zone partners to take a hard line toward Greece, but in the end, Germany has much to lose by forcing the Aegean nation to choose between more austerity and dumping the euro.  For Econintersect comments see first article in Greece section.

Greece

  • Greece’s new deal: From austerity to ‘austerity squared’ (Al Jazeera)  Economic bailout package means further cuts to Greek benefits and state assets, despite months of negotiations.  Econintersect:  The economic prescriptions of the EU and friends (Troika, Institution) have all the sophistication of 18th century medicine:  If bloodletting did not improve the patient then we didn't drain enough blood.  When debts cannot be paid they will not be paid, especially true if the means for acquiring repayment are removed.  When history offers judgment on this event it will not be kind.  When all over, the creditors will have traded an opportunity for partial repayment for no repayment and the Greeks will be reduced to restarting their society from a status last seen in World War II, and before that the Dark Ages of Europe. 
  • Greek Bailout Rests on Asset Sale Plan That’s Already Failed (Bloomberg)   Greece’s last-ditch bailout requires the country to sell €50 billion ($55 billion) of assets, an ambition it hasn’t come close to achieving under previous restructuring plans.  The government of then-Prime Minister George Papandreou in 2011 set the same financial goal, which it sought to achieve by hawking airports, seaports, and beachside real estate. Since then, such deals have yielded €3.5 billion, according to the state privatization authority.  For Econintersect comments, see previous article.

Iraq

Iran

Mexico

Venezuela


May 2015 Housing Affordability Index (Michael Hyman, National Association of Realtors)  At the national level, housing affordability is down from a year ago and for the month of May as fewer previously owned homes are available and prices continue to grow at an unhealthy pace relative to incomes, and lower mortgage rates did not completely offset this effect.

housing.affordability.2015.may.


What Jurassic World Can Teach Investors About The Stock Market (Ky Trang Ho, Forbes)  KTH has contributed to GEI.  When it comes to long-term investment success, it is hard to beat the strategy of KISS (keep it simple stupid).  More complicated investment strategies can make people rich - usually not the investor, though. This article includes an interview with Ben Carlson and discusses his new book, A Wealth of Common Sense: Why Simplicity Trumps Complexity in Any Investment Plan, published by Wiley in June.  Ky Tran Ho summarizes:

Financial firms create mathematically-modified funds with “proprietary formulas” or “quantitative algorithms” that manage to beat the stock market in back tests. But the industry graveyard attests to the reality that simplicity trumps complexity. Financially-engineered assets often fail to perform as their creators intended. Or they are ill-equipped to deal with unanticipated events. Ultimately, hedge funds, mutual funds, and exchange-traded funds have to destroy their own creations to save themselves from ruin.

investment.returns.fancy.strategies

investment.returns.basic.assets


  • The U.S. Treasury Market on October 15, 2014  (U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Federal Reserve Bank of New York, U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission)  The U.S. Treasury market is the deepest and most liquid specialized financial market in the world - except when it isn't.   The multiple agencies listed above today (13 July 2015)  issued a joint report analyzing the significant volatility in the U.S. Treasury market on October 15, 2014. Using non-public data from the U.S. Treasury cash and futures markets, the joint report provides detailed analysis of the market conditions and record trading volumes that day, including an unusually rapid round trip in prices and deterioration in liquidity during a narrow window.  In otherwords there was another event that might be called a series of "mini-flash-crashes".  See Tumultuous stock market plagued by ‘mini flash crashes’ (MarketWatch, 15 October 2014).  The report released today basically concludes that what happened was because "that's just the way of the world" (Econintersect summary words). From the Fed press release:

The joint report makes clear that a number of developments help explain the conditions that likely contributed to the volatility. Specifically, the report finds that in addition to other factors, changes in global risk sentiment and investor positions, a decline in order book depth, and changes in order flow and liquidity provision together provide important insight into the developments that day. The report also underscores the changing structure of the U.S. Treasury market, the deepest and most liquid government securities market in the world.

Finally, the report also offers several next steps to further enhance the public and private sectors' understanding of changes to the structure of the U.S. Treasury market and their implications. The report recommends continued analysis of U.S. Treasury market structure and functioning, focusing on trading and risk management practices, the availability of public data, and continued efforts to strengthen monitoring and inter-agency coordination related to trading across the U.S. Treasury cash and futures markets. 

  • Why Barry Ritholtz Went Robo (ThinkAdvsior)   Barry Ritholtz has adopted automated online investing. For the last nine months, Ritholtz Wealth Management has offered Liftoff, a low-cost way for millennials to start saving for retirement.  This enables the firm to accept accounts as small as $5,000 using Ritholtz’s proprietary asset management allocation for long-term investing. It uses commission-free ETFs only in a broad assortment within a variety of asset classes and a digital platform from Upside.  Included in the automated process is quarterly portfolio rebalancing.  The annual fee for clients in 40 basis points and Ritholtz says he would like to drive that cost lower over time.

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
Why Long-Run Theories of Profit and Accumulation Fall Short
Brexit - Who Wins and Loses
News Blog
CO2 Levels And Global Warming
Worthless Mining Waste Could Suck CO Out Of The Atmosphere And Reverse Emissions
Average Gasoline Prices for Week Ending 24 April 2017 Rose Over 1 Cent
The Worst Roads In The USA
What We Read Today 24 April 2017
Best And Worst States To Retire In The United States
April 2017 Texas Manufacturing Survey Continues to Expand
March 2017 CFNAI Super Index Moving Average Declined
What Is The Informal Labor Market?
Changes In Labor Force Participation
Infographic Of The Day: 10 Habits Of Millionaires For Building Wealth
Early Headlines: Asia Stocks Mostly Up, China Down, Dollar And Oil Up, Gold Down, European Stocks Open Up, 2nd SCOTUS Seat For Trump?, SCOTUS Gets Gerrymander, UK Has Huge Gender Pay Gaps, And More
Most Read Articles Last Week Ending 22 April
Investing Blog
Market And Sector Analysis 23 April 2017
Markets Rally As Expected
Opinion Blog
Reducing Inequality Could Be A Matter Of Survival
America's Gilded Age 2: On The Rocks
Precious Metals Blog
Three Gold Plays For The New Era Of Chaos
Live Markets
24Apr2017 Market Close: Wall Street Closes Higher, DOW Closes Up 216 Points, Investors Now Worry About A Looming Shutdown Of The Federal Government
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