The Big Picture

Do Small Businesses Still Prefer Community Banks?
Springsteen: AC/DC’s Highway to Hell
Succinct Summations of Week’s Events 2.14.14
There’s Rich, There’s Really Rich, Then There’s the 0.01%
10 Friday Reads
Slides From the Federal Reserve Bank of Dallas
Ferrari California T
Money, Liquidity and Welfare

Do Small Businesses Still Prefer Community Banks?

Posted: 15 Feb 2014 02:00 AM PST

Springsteen: AC/DC’s Highway to Hell

Posted: 14 Feb 2014 05:00 PM PST

Succinct Summations of Week’s Events 2.14.14

Posted: 14 Feb 2014 01:42 PM PST

Succinct Summation of week ending February 14, 2014

Positives:

1. After a 6% pullback, the S&P 500 has rallied 7 days in a row and is less than 1% away from new all-time highs.
2. QQQ closed at a new 14-year high
3. Euro-zone GDP grew 0.3% in Q4 v 0.2% expected. This is the 3^rd consecutive quarter of expansion.
4. Total earnings for the S&P 500 are on track to reach an all-time quarterly record.
5. The Market had its best week of the year
6. NFIB small business hiring plans rose to 12%, highest reading since September 2007.
7. Consumer confidence came in unchanged, but beating expectations.
8. NFIB index of small-business optimism comes in at 94.1, a hair over expectations.
9. Greek 10-year yield at lowest levels since 2010.
10. Italian GDP grew 0.1% in Q4, the first expansion since 2011.

Negatives:

1. U.S. January manufacturing output fell 0.8%, biggest drop since 2009
2. Retail sales fell 0.4%, v flat expectations. December's #'s revised down to -0.1%, from 0.2%.
3. U.S. industrial production fell 0.3% in January, economists were expecting a 0.3% rise.
4. Initial claims jump to 339k vs 330k expected.
5. Mortgage apps still not responding to rates down from recent highs. Purchase apps fell 5% w/o/w after dropping 3.8% last week — nearing lowest levels since December 2012.
6. December JOLTS data = 3.99mm openings, down from 4.03mm in November.

There’s Rich, There’s Really Rich, Then There’s the 0.01%

Posted: 14 Feb 2014 10:00 AM PST

The news media seem to have discovered something that economic wonks and number crunchers have understood for quite a while: How much richer the super-rich are than everyone else, including the merely rich. Mathematically speaking, the difference between poor and rich is much smaller than the chasm separating the well-off from the stupendously wealthy.

We aren’t discussing income inequality, Obamacare or stagnant wages. I am aware that the poor in this country have no discretionary income, and that there are many disadvantages to being lower income in the U.S.: bad health care, poor nutrition, lower educational opportunities, limited economic mobility, even a shorter lifespan.

Continues here

10 Friday Reads

Posted: 14 Feb 2014 07:30 AM PST

What a week. It’s almost over so pack the SPF 50, one day until vacation!

• How to Be a Better Valentine, Through Economics (Economix)
• 77 Reasons You're Awful at Managing Money (Motley Fool) see also Warren Buffett is laughing at you for selling (MarketWatch)
• Robots won't make you rich (for long) (FT Alphaville)
• Excluding Cash, Google Is Now More Valuable Than Apple (Ashraf Eassa) but see Apple Took 87 Percent of Mobile Phone Profits Last Quarter (IBD)

Continues here

Slides From the Federal Reserve Bank of Dallas

Posted: 14 Feb 2014 04:00 AM PST

Ferrari California T

Posted: 14 Feb 2014 03:00 AM PST

This is a lovely car (even if it is missing a proper 3rd pedal):

Here is what adding a turbo does to the specs:

Acceleration: 3.6 SEC 0-100KM/H
Maximum power 412 kW (560 cv) @ 7500 rpm
Maximum torque 755 Nm (77 kgm) @ 4750 rpm
Max Power 412 KW (560 cv)

Type 90° V8 with fuel direct injection
Total displacement 3855 cm3