(source: http://www.businessinsider.com/food-stamp-use-2012-12)

 

For those unfamiliar with the work of John Geanakoplos: it’s the leverage cycle, not the interest cycle that is important!

·         http://www.bloomberg.com/news/2012-12-09/if-we-don-t-measure-leverage-we-risk-more-crises.html

 

Given the importance of leverage, it is interesting to find that the word leverage is used only once in the main text in this BIS study on the financial cycle…

·         http://www.bis.org/publ/work395.pdf

 

And another fine example as to how difficult forecasting really is: back in 2004 it was expected that the Italian economy would be 20% bigger by nowthan it actually is…

·         http://www.zerohedge.com/news/2012-12-10/sheer-comedy-erroneous-economist-gdp-forecasts-13-simple-charts

 

I have really no clue….

·         http://www.zerohedge.com/news/2012-12-10/fiscal-cliff-context

 

Thanks, Facebook….

·         http://www.bespokeinvest.com/thinkbig/2012/12/10/bloomberg-ipo-index-falters-due-to-facebook-fb.html

 

I have seen this report, but missed the numbers: the Sharpe ratio for High Frequency Traders is 9*! And yes, I read the criticism…

·         http://www.nakedcapitalism.com/2012/12/risk-and-reward-in-high-frequency-trading.html

* a sharpe ratio of 1 or higher is considered to be good, anything beyond 3 is….

 

Cool but not very surprising chart on Europe: wages and productivity have dropped

·         http://www.economist.com/blogs/graphicdetail/2012/12/daily-chart-5

 

Analysts are ‘slightly’ optimistic on margin improvements for next year…

·         http://www.businessinsider.com/2013-profit-margin-expectations-2012-12

 

Looking at this, I do not get the feeling that labour is getting a better deal these days…

·         http://www.zerohedge.com/news/2012-12-10/mysterious-case-americas-negative-real-wage-growth

 

Cool if somewhat oversized map of the world’s maritime troubled waters

·         http://www.businessinsider.com/worlds-most-dangerous-shipping-areas-2012-12

 

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