Felix Salmon

Counterparties

FBI agents have received training that “mainstream” Muslims are “violent” terrorist sympathizers — Wired

Can Netflix still win when cable TV loses?

Ryan Lawler makes a very important point: even as the number of people living in poverty continues to rise, and median incomes have gone nowhere since 1996, the price of cable TV just goes inevitably and inexorably upwards. Which is a nasty dynamic, since cable companies make a huge proportion of their money by selling their service to the poor. A whopping 40% of US households spend all of their income on food, shelter, transportation and healthcare, leaving nothing for the modern necessities of cable TV and phone service.

When investment banks hire risk-takers

Matt Taibbi is quite right about the $2 billion of rogue-trading losses at UBS. Basically, investment banks hire for risk-takers; they shouldn’t be surprised when this kind of thing happens.

Will Warren Buffett step down as Berkshire CEO?

Alice Schroeder, Buffettologist exraordinaire, notes the careful form of words in the press release announcing the hiring of Ted Weschler as an heir to Buffett’s investing throne:

WATCH the euro crisis explained with lego

Michael Cembalest’s idea of explaining the euro crisis with lego was pure genius. So, of course, I had to go out and find some lego myself; the above video is the result. If you look very closely, you might even be able to see the French banks!

The can-kicking bank bailout

When the WSJ published an allegation on Tuesday that BNP Paribas had been cut off by US money-market funds, the bank responded with indignation, saying that it “categorically denies the statements made by this anonymous source”. But it never quite came out and said that it had access to US money-market funds — it just said that it still owed them money, and that it was “fully able to obtain USD funding in the normal course of business, either directly or through swaps”.

Thought experiment of the day, job-creation edition

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Note to “job creators” out there: With $2 billion, you could employ 40,000 people for a full year at $50,000 each. #roguetradeless than a minute ago via web Favorite Retweet ReplyPedro da Costa
pdacosta

Counterparties

Greece’s best plan is to “default big,” says former Argentine central bank governor Mario Blejer — Bloomberg Businessweek

Chart of the day, retirement account edition

401.jpg

Many thanks to the good people in the Thomson Reuters HR department for helping put the data for this chart together; it’s my contribution to the TR Financial Wellbeing Month.