Quote of the day
Gary Becker, “As bad as their present fiscal situation is, the long-term picture for state and local government finance is even more dismal.” (Becker-Posner Blog, ibid)
Chart of the day
Source: WSJ
Video of the day
The state and muni budget crisis is now fodder for the mainstream media. (60 Minutes)
Markets
Winding down the Christmas rally. (Big Picture also Bonddad Blog)
The shift from bonds to stocks still has a ways to go. (Money Game)
What happens to Treasury yields when the Fed starts to change policy? (FT Alphaville)
Share buybacks are back, baby! (Globe and Mail, MarketBlog)
Why has equity volatility disengaged from bond and currency volatility? (Daily Options Report)
A look at the volatility situation around year-end. (VIX and More)
A weird example of large cap-small cap seasonality at the turn-of-the-month. (MarketSci Blog)
Jeff Carter, “Weather is not given enough credit for its influence on markets.” (Points and Figures)
Strategy and Tactics
Don’t forget that every investment is sold, not bought. The case of exchange-traded gold. (Bloomberg, DailyFinance)
John Hussman, “Agreement among “experts” is not your friend.” (Hussman Funds)
Tom Brakke, “It is important to build on the work of others, whether by reading about great investors or, if you are lucky, by meeting or working with them.” (the research puzzle)
Why buy commodities when you can buy the commodity producers? (FT Alphaville)
Thin markets are technical markets. (StockTwitsFX)
Trading against the currency bets of the Swiss National Bank. (Bruce Krasting)
Technology
Google TV is in trouble. (NYTimes)
Why we need more “grown up” start-ups. (Slate)
On the importance of ‘undo.’ (Harvard Business Review)
The back and forth between Whitney Tilson and Netflix’s (NFLX) CEO highlights the fact that it has become a a battleground stock. (AR Screencast)
Finance
Ernst & Young may ultimately pay for its involvement with the downfall of Lehman Brothers. (naked capitalism, WSJ, TRB, Dealbook, Street Sweep)
Investors are increasingly differentiating between muni credits. (WSJ, ibid also FT Alphaville)
Goldman Sachs (GS) wants to “be Goldman in more places.” (FT Alphaville, Deal Journal)
Why some insurance companies choose to ignore Berkshire Hathaway (BRKB). (footnoted)
Do credit ratings agencies do more harm than good? (Insider Monkey)
Thinking the unthinkable: a zero bonus on Wall Street. (NYTimes)
Russ Roberts talks financial crisis with Joe Nocera. (EconLog, Falkenblog)
Economy
The Chicago Fed National Activity Index slowed in November. (Calculated Risk, Global Economic Intersection)
Temp workers are beginning to look a lot more permanent these days. (NYTimes)
Estimates of Chinese growth are likely optimistic. (Michael Pettis)
Does Brazil have its own credit crisis on its hands? (Bloomberg)
News flash: economists have conflicts of interest. (Reuters)
A List of Lists
Ten economic questions for 2011. (Calculated Risk)
Six themes for 2011. (Pragmatic Capitalism)
The top 10 business stories of 2010 from John Cassidy. (New Yorker)
Ten ‘outrageous predictions‘ for 2011. (FT Alphaville)
Four interesting books on investing. (Economic Principals)
The 25 best TV shows of 2010. (The AV Club)
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