Linkfest: Revenge of the 1%; Credit rating arbitrage; Hedge fund tries to unmask anonymous blogger

Categories: Linkfest

Today’s most shared:

  • The 1% bounce back from adversity. Phew, that was a close call. As long as productivity rises and the median wage stays flat, the top of the income distribution wins.
  • It’s harder and less profitable to be right, so rating agencies tell people what they want to hear. If people want AAAs and regs say investors should buy AAAs, agencies will give people what they want. If clients were fooled, then why did those AAA CDOs have to pay higher yields? Regulatory arbitrage for the win.
  • Einhorn tries to unmask Seeking Alpha anonymous blogger.
  • New York AG said to target HFT firms over unfair edges.
  • Financial literacy, inadequate retirement savings, and confusing economic reporting.
  • Business Insider responds to a skeptic about their business model.

The rich strike back
Politico
Just a few months ago, it looked like 2014 would be the year of the populist, with Democrats running on economic inequality, tea party Republicans bashing banks and newly minted New York City Mayor Bill de Blasio pledging to soak the rich with higher taxes. The terrain is now shifting fast as the 1 percent fights back hard and the effectiveness of the populist approach comes into question.
shared by NYT Dealbook, @danprimack, @reddy, Huffington Post
 
The Most Important Economic Chart
houseofdebt.org
If you must know only one fact about the U.S. economy, it should be this chart. The chart shows that productivity, or output per hour of work, has quadrupled since 1947 in the United States. This is a spectacular achievement by an advanced economy.
shared by @TheStalwart, @counterparties, @cafreeland, @GTCost
 
Ratings Agencies Told Investors What They Wanted to Hear
bloombergview.com
In which two finance professors conclude that ratings agencies were in the business of helping investors rip themselves off, which seems about right to me.
shared by @LaurenLaCapra, @JohnLothian, @KidDynamiteBlog
 
Hedge Fund Spars With a Nameless Blogger
New York Times
The case by David Einhorn’s firm against Seeking Alpha could be a watershed for confidential information being posted anonymously.
shared by @MattGoldstein26, @ritholtz, Here Is The City, @JacobWolinsky
 
Is Yahoo’s Business Worth Less Than Nothing?
bloombergview.com
The implied market value of Yahoo! Inc. after excluding its ownership stakes in Alibaba and Yahoo Japan is negative.
shared by @izakaminska, @M_C_Klein, @ritholtz, @jbarro, @tomkeene, @Alea_
 
Financial Literacy
Conversable Economist
Only 34% of respondents get these three very basic questions correct.
shared by @HamzeiAnalytics, @mccarthyryanj, @abnormalreturns, @MarkThoma
 
Retirement: A third have less than $1,000 put away
USA Today
Most people aren’t trying to figure out how much they’ll need in their golden years.
shared by @ritholtz, @ReformedBroker, Reformed Broker, @mark_dow
 
Three Rules to Make Sure Economic Data Aren’t Bunk
fivethirtyeight.com
Economic data stories only rarely stop to explain what those numbers measure, how they are collected or how reliable they are. Instead, readers are often left to accept numbers at face value or wade through conflicting indicators.
shared by Marginal Revolution, @M_C_Klein, reddit/Economics, @ProPublica
 
USA Today Is Worried About Us And The Digital Media Industry!
Business Insider
For what it’s worth, the USA Today article includes several incorrect facts about us that we would like to correct.
shared by @firstadopter, @StKonrath, @TimOBrien, @JacobWolinsky
 

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