Weekend Reading

Quote of the Week:

We will continue this cycle until we catch on. The problem isn’t only that the Fed is treating the symptoms instead of the disease. Rather, by irresponsibly promoting reckless speculation, misallocation of capital, moral hazard (careless lending without repercussions), and illusory “wealth effects,” the Fed has become the disease.

~John Hussman

Links for the Week ending Nov-13, 2010

Finance / Economics

  • John Hussman on QE and Bernanke. “Bubble, Crash, Bubble, Crash, Bubble…” (Hussman)
  • Despite growth in October non-farm payrolls, some companies are delaying hiring due to rising input prices. “U.S. Sees Surprise Growth in Jobs” (WSJ)
  • What expiring UI benefits mean for the jobs report and QE. “Hot Employment – Cold Bernanke?” (Bruce Krasting)
  • Commodity inflation – James Hamilton (econbrowser)
  • Damodaran on Self Awareness. “The Secret to Investment Success: Self Awareness?” (Musing on Markets)
  • On Re-Balancing a portfolio during a secular bear market. “How to Play a Market Rally” (WSJ).
  • For much more on Re-Balancing and Market cycle see the great work by Ed Esterling at Crestmont Research. Start with “The Impact of Rebalancing” (Crestmont Research)
  • “Are ETF’s a Menace – or Just Misunderstood” (Jason Zweig)
  • Quick Recap of Positives and Negatives from Last week’s economic data. (The Big Picture)
  • Annaly Capital on the labor force shrinkage. “A JOLTing Look Below the Latest Jobs Headlines” (Annaly Capital) Also, if I may suggest my own piece on the same subject. “High Number of Those Not-In-Labor-Force Suggests Headline Unemployment Rate to Remain High” (Seeking Delta)
  • Video: GRANTHAM: THE FED IS BLOWING THE LAST BUBBLE (Pragcap)
  • ROBERT SHILLER DEBUNKS THE STOCK MARKET “WEALTH EFFECT” (Pragcap)
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