Thursday links stick their head in the sand

By Felix Salmon
June 18, 2009

Jonah Lehrer on why investors should ignore the markets and the financial press

Paul Smalera comprehensively demolishes the idea that micropayments might ever save Time Inc

Larry Summers is not in touch with his uncle, Nobel laureate Paul Samuelson. How very… Larry.

Skeel and Partnoy define CDOs as credit derivatives. Not sure that’s really necessary, or helpful.

If you thought regulators were captured by Wall Street, just wait till you see financial journalists!

Looking at the yield curves in the US and Canada, it seems that the Fed has committed itself to no rate hikes until 2010

Quotes of the times: “$2.7 trillion may sound like a lot of money, but“…


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The problem with micropayments for newspapers and magazines is not that people won’t pay the equivalent of what they pay for the print editions (I think they would), the problem is that that revenue won’t be enough. That will only replace cash generated from selling the publication, which is a small fraction of the overall revenue publishers need to take in. Even if everybody paid for subscriptions on-line or on the kindle, subscription revenue is not going to pay the bills.

The main problem is the cost of advertising is now so much less than it was/is for print and TV/radio, because there is so many more advertising slots available on the web. There is a finite and relatively very small # of time slots for ads on TV shows, newspapers, and magazines, so the cost of advertising in those mediums was able to rise to meet the expenses of publishing them. However, there are almost an unlimited # of web pages that will accept ads, and that drives the price of advertising way down, below what will pay the cost of creating content.

It’s possible that big name content that can attract millions of visitors will be able to survive, but the rest of them, whose readers and viewers number in the hundreds or tens of thousands, are going to have to come up with some brand new business model.

Posted by KenG | Report as abusive

You won’t leave poor Larry alone, will you?

Posted by lanigan | Report as abusive

I love this definition: “We define credit derivatives as financial instruments whose payoffs are linked in some way to a change in credit quality of an issuer or issuers.”

Sounds like a corporate bond fits this category pretty well.

Posted by ab | Report as abusive