China

 

• Pettis: I would argue that until Beijing has cleaned up its debt problems and its very unstable balance sheets, it cannot move quickly. $$
• Pettis: Reducing the [interest] subsidy by raising rates would cause them all to bleed money. (DM: thus fin’l liberalization difficult) $$
• Pettis: Far more than 100% of total SOE profits come from the interest rate subsidy (not to mention other subsidies…) $$
• Target loopholes in pension system firststks.co/fVB7?China pensions exceeds the stupidity of US but not Greece: ret ages 2 low $$
• Chinese steel association seeks to tackle ‘vicious competition’?stks.co/pBzz?A lot of words trying to explain away 2 much steel $$
• China Slowing Reserves – A reverse QE?stks.co/hUjH?Hu Jintao ate sour grapes & Xi Jinping’s teeth r set on edge $$#dealtabadhand
• Policy battle rages in China as slowdown feeds ‘sense of crisis’?stks.co/qBXa?Hard to overcome bureaucracy stifling the economy $$

 

Europe

 

• Germans Splurge on Italian Homes Locals Can?t Afford?stks.co/iUpP?Pushes $$ into Italian economy, don’t kvetch
• German euro founder calls for ‘catastrophic’ currency 2b broken upstks.co/tBWC?The political experiment should end; harm>good $$
• Eurozone crisis deepens as German ‘sado-monetarists’ refuse to back QEstks.co/gUXD?Either centralize or dissolve the Eurozone $$
• Southern Europeans Flock to Germanystks.co/cTEw?Cheaper labor emigrates to Germany to benefit from their capital invested $$
• Sweden a Crisis Casualty No More Shows How to Get Haven Glowstks.co/bTBH?Which inflates asset values in their economy, great $$

 

Rest of the World

 

• Egypt?s Wheat Farmers Hobbled by Fuel Shortages as Silos Run Lowstks.co/pCGK?Who would have the courage 2free Egypt’s economy? $$
• Dollar Buying Continues Apace After ?100 Break?stks.co/iVEm?&?stks.co/jV1m&?stks.co/fVAg?Three on?#Japan?$$
• Iran Cracks Down Ahead of Electionstks.co/gV0Q?The Ghanoon newspaper says. “Only in Iran: Election comes and Internet goes.” $$
• SAT Scandal Shines Harsh Light on South Korean Academics?stks.co/qC0LSAT exams cancelled in S. Korea, a first for any country $$
• Egypt Investment Collapsing as Citizens Turn Into Vigilantes?stks.co/eTds?It was smart 2 topple Hosni Mubarak & Saddam Hussein $$
• In India, a Quixotic Fight Against Car Honks?stks.co/sBQj?Makes me want 2 create a bumper sticker, “Honk if you love India!” $$ 😉

 

Companies & Industries

 

• Blackstone Targets Bulging Corporate Coffers Via New Unit?stks.co/sC9w?W/ MMFs under threat, alternative S-T income funds arise $$
• Temporary Workers Near US Record Makes Kelly a Winner?stks.co/rC9qStaffing firms benefit from need 4 fewer full-time workers $$
• And, as an aside, once PPACA [Obamacare] really kicks in, part-time work may become even bigger; very ill-thought out law, unforced error $$
• Delta Capital-Return Plan Puts Focus on Cash Flow?stks.co/cThy?Airlines r2 capital intensive 2b run 4 free cash flow; dubious $$
• Scor lead bidder for Generali USA in $800m deal?stks.co/qC1o?Not surprising 2c Scor overpay;?$RGA?is conservative $$ | FD: +?$RGA
• Some Insurers Turn Away Variable-Annuity Money?stks.co/eTaG?When a life company does this, fund it, & don’t surrender; you won $$
• Merged Bonds May Spur Fannie, Freddie Revamp?stks.co/dT4a?Offer the equity interests a kiss goodbye & merge them into GNMA $$
• Cheapest Way to Rob Bank Seen in Cyber Attack Like Hustle?stks.co/tBQ6Start Denial of Service attack, raid $$ during distraction
• New technology propels ‘old energy’ boom?stks.co/rBPp?Alternative energy will make sense when conventional energy gets scarce $$
• Amazon?s growing threat 2 H-P, Dell and Oracle?stks.co/qBQR?It’s amazing how you can beat your competitors w/no profit FD: +?$ORCL
• Some Verizon Investors OK With Paying Premium 4 Vodafone Stake?stks.co/bTAjSome large?$VZ?shareholders ok paying $130B FD: +?$VOD

 

US Politics & Economics

 

• Deficit Reduction Is Seen by Economists as Impeding Recovery?stks.co/eTyxEconomists have not been right, y listen 2 them? $$
• ??Big banks get a great deal when they borrow from the Fed,? Warren said on the Senate floor. ?In effect, the American taxpayer… (1/2)
• …is investing in those banks. We should make the same kind of investment in our young people who are trying to get an education.? (2/2) $$
• Private Student Debt Refinancing Could Help Economy, CFPB Says?stks.co/fV03Elizabeth Warren is a dangerous loony in this case $$
• @AllenSammey?When a politician lobbies to use the borrowing power of the Fed for narrow political ends, that is dangerous, no?
• @AllenSammey?Also, read the two prior tweets. They were meant as a group. I like a lot about Warren, but there is a lot 2 worry about also
• @AllenSammey?That’s y I lend to my own children @ 0% in place of student loans; that they r not dischargeable in BK is another neg feature
• Blacks Surpass Whites in Voter Turnout, Census Data Show?stks.co/hVAA?Helps explain the last election’s results $$
• Colleges Soak Poor US Students While Funneling Aid to Rich?stks.co/bTURColleges r funded by donations. Poor people can’t donate.
• What was Gallagher thinking?stks.co/dTHw?Difficult 2harm muni bonds w/strong economic purpose/pledges behind them $$ by?@munilass
• Time for Americans to Rethink Retirement??stks.co/rBX4?If u have not concluded that u won’t retire, u r not paying attention $$
• Federal Reserve Blows More Bubblesstks.co/eTLo?Ron Paul minces no words about the foolishness of current Fed policy $$
• If this was a pill, you?d do anything to get it?stks.co/jUPk?Simple: have a nurse check on sick elderly at home once a week $$
• Gore Is Romney-Rich With $200 Million After Bush Defeat?stks.co/pBWE?An utter hypocrite, pursuing his politics 4 financial gain $$
• US Non-Farm Payrolls – The Hidden Weaknesses – not +165k but -376k?stks.co/rBPu?A pessimistic alternative view of jobs report $$
• Too Much Asset Inflation?stks.co/eTGDTakes on Paul Krugman’s blather about there not being enough inflation, given asset bubble $$
• Everything You Think You Know About the Fed’s Exit Plan May Be Wrongstks.co/rBOX?Fed may try 2 tighten &hold down long yields $$
• Reverse Revolving Door: How Corporate Insiders r Rewarded, Leaving Firms For Congress?stks.co/gUMN?Y the Purple Party rules DC $$

 

Market Dynamics

 

• Seth Klarman Warns of False Calm in the US?stks.co/jUu8?It is far easier 2b lax in $$ policy than it is to remove laxity#klarman
• Investor Demand Propels Cheap Corporate Debt?stks.co/dTcm?Note that borrowing is not going on to fund organic growth, generally $$
• Yields on Junk Bonds Reach New Lowonline.wsj.com/article/SB1000??When the average yield on junk bonds drops below 5%, we should run away $$
• Listening to Harry Markowitz drone on about MPT, while I have 2 questions pending.?stks.co/aTco?Webinar:Arizona CFA socieities $$
• As Sohn gears up, is it open season on Paulson and other hedge funds?stks.co/qBls?Hedge funds have a weak liability structure $$
• This graph is 1 of many reasons y I follow the credit cycle:?stks.co/iUiM?Not perfect, but credit is the heartbeat of commerce $$
• ?Putting Dow 15,000 in Perspective? by@ReformedBroker?stks.co/qBe9?Round numbers fascinate us; processes behind them r unclear $$
• Spinning single-family home investments into mortgage-backed securities?stks.co/iUe9?Better idea than securitizing rents $$
• Current Account: Cheap Junk Leads to Expensive Mistakes?stks.co/aTNl?A lower coupon on a junk bond means more refinancing risk $$
• Wall Street?s trading businesses turn to survival of the least dead?stks.co/gUR6You want 2b the last man standing: monopoly $$
• Rush for gold coins, jewels peters outstks.co/hUcf?Looks like the drive to own physical precious metals has finished 4 now $$
• Speedy Robots Still a Wall Street Perilstks.co/gUQe?Anytime a strategy gets too large, the non-linearities kick in, w/crisis $$
• Chart of the Day: NYSE Margin Debt Raises Eyebrows?stks.co/hUcAAsset/Liability mismatch invites trouble; margin debt goes up $$

 

Other

 

• Better Than Buffett, This Investor Made Me Rich for Life?stks.co/bTj3@davidweidner?’s tribute to his late mother $$ Love > Money
• If Spending Is the Goal, Try Use-It-Or-Lose-It Gift Cards?stks.co/iUpXSeiniorage should b distributed to the people per capita $$
• The Internet Kills More Jobs Than It Creates?stks.co/fUm6?It is shrinking the cash/taxable economy, but not the economy. $$
• Today?s CEOs Are Too Timid for the Times?stks.co/aTbG?The marginal productivity of capital is falling b/c of debt deflation. $$
• David Ferrucci: Life After Watsonstks.co/dTER?Creator of IBM’s Watson goes 2Bridgewater 2apply Big Data & AI 2forecasting econ $$

 

 

Berkshire Hathaway

 

• $BRK.A?CEOs Spend Quietly, Match Buffett on Heinz Deal?stks.co/dTmE?FD: +$BRK.B?| Clever subsidiary CEOs grow BRK organically $$
• New book teaches children ABCs of Buffett’s Company?stks.co/iUpW?There would b a Hebrew version, but the Gecko isn’t kosher $$ 😉
• I think reinsuring Long Term Care is stupid almost always. Insureds know more than insurer, who know more than reinsurer cc?@retheauditors
• BRK knew *far* less than SwissRe about the policies they were reinsuring. On life re, meh, but 2 reinsure LTC takes real knowledge $$ +?$BRK
• Buffett’s Ribbing About Swiss Re Dispute Is Fibbing?stks.co/bTGH?SwissRe took BRK 2 the cleaners FD: +?$BRK/B cc@retheauditors?$$
• Warren Buffett worries about Fed’s ‘huge experiment’?stks.co/eTFv?Reliable: removing accommodation is harder than providing it $$
• Munger: It’s time to break up the banksstks.co/hUcC?Munger knows that you should mix deposit insurance w/investment banking $$
• A Lesson From Warren Buffett: Doubt Yourself?stks.co/sBPW?Many great investment teams encourage disagreement 2 test theses hard $$
• ?We Want to Win?:Berkshire Hathaway Ann’l Meeting, 2013 Edition?stks.co/gUPpBuffett could help?$VZ?buy VZ Wireless FD: +$BRK?$VOD

 

 

Wrong

 

• @creditplumber?My article is about insurance companies; u r taking my words out of context
• Wrong: Fed in 2008 Showed Panic of 1907 Was Excessive?stks.co/jV1r?If/when the tightening cycle ends & things r fine, then crow $$
• Wrong: Earnings Seen Lifting S&P 500 to Real Record?stks.co/bTjd?Profit margins would have 2 rise from record highs 2 do this $$
• Wrong: Y I Have Never Said 2Invest With Warren Buffett?stks.co/qC02?U don’t tug on Superman’s cape, u don’t spit in the wind… $$
• Unsure: Chanos sees downturn in hard disk drive industry?stks.co/iV3L?Will b hard to fight all of the free cash flow $$
• Wrong: Larry Fink’s radical retirement recommendation?stks.co/fUaf?Please do *not* constrain people 2save; failure is an option $$
• @AllenSammey?I mean that people should be free 2 take care of current needs rather than being forced to save, even if it means poor when old
• Wrong: House Democrats Seeking Control Eye 17 Split-Ticket Seatsstks.co/gURH?This article asserts, it does not prove $$
• Wrong: Bond Buyers See No 1994 Rout Helped by Bernanke Clarity?stks.co/qBQsNo one saw 1994 coming either; we r flying blind $$
• Wrong: Crises Before and After the Creation of the Fed (2013-13, 5/6/2013)stks.co/gULU?Very premature 2 run a victory lap $$

 

Replies, Retweets & Comments

 

• @SarcasticBull?I agree.
• That is funny & weird. Very, very weird $$ RT?@izakaminska: Meme time:Hitler finds out about negative interest ratesstks.co/fUfN
• @munilass?The danger 4 those that seek notable media coverage: media likes bold predictions, b/c they are “newsy.” Kind of a trap $$
• @ScrollnKey?6x prior premium? Thanks. Post-Cyprus I think many people are analyzing how they can preserve their wealth.
• Building a bigger, badder, bubble RT@kmac: RBA statement herebit.ly/12cL7Kk
• @ScrollnKey?How is it compared to six months ago?
• +1 Houses r expenses RT@cullenroche: Rarely do I disagree with Rick Ferri, but I do here.rickferri.com/blog/investmen?
• @OffRoadFinance?I will accept the premise of the paper once we get through the ultimate tightening cycle, which may not b 4 decades
• Van Hoisington, Lacy Hunt & Gary Shilling would agree RT?@carney: …a lot of people making bets on rates rising could get burned badly …
• @ReformedBroker?thanks
• @The_Analyst?@ReformedBroker?There are levels of trust; this one ain’t so high, but it’s a straw blowing in the wind
• @ReformedBroker?What was the forward PE on the cyclicals?
• @gmacd18?Too early to say. Japan has been given a temporary free pass from the G20. When more nations try2 weaken their currencies, we’ll c
• RT?@volatilitysmile: “The tax deductibility of interest played its part in creating this mess, both in the corporate and mortgage markets.”

 

FYI

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• My week on twitter: 51 retweets received, 1 new listings, 87 new followers, 61 mentions. Via:?20ft.net/p

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