Wednesday, November 28, 2012

Oddly Relevant Nov-28-2012


Evidence is mounting that moderate minimum wages can do more good than harm: Per UMA and Berkley research, restaurant employment between 1990 and 2006 showed no adverse effects from a higher minimum wage; Britain’s 46% of median wage as minimum also has done little to no harm. Some of the newest studies suggest firms employ a variety of strategies to deal with a higher minimum wage, from modestly raising prices to saving money from lower turnover. [Note: business emerged from fierce competition are strong enough to weather this adjustment it seems]…Source: http://www.economist.com/news/finance-and-economics/21567072-evidence-mounting-moderate-minimum-wages-can-do-more-good-harm

The age discrimination in Silicon Valley: hardly surprising given the nature of business and preference of investors. Of the 18,335 employment cases filed in 2010 with California's Department of Fair Employment and Housing, 1/5 cited age, just below retaliation but above racial discrimination, sexual harassment, and sexual orientation. The resolution for seasoned veterans? Get personalized emails, carry backpacks, get iphones/androids, avoid watches, dress young, rid grey hair, and perhaps get a facelift. [Note: The firms that don’t stand to benefit. This is old news really.]…Source: http://www.reuters.com/article/2012/11/27/us-valley-ageism-idUSBRE8AQ0JK20121127

Profits continue to erode for currencies: The rise of electronic platforms and calm market hit the banks’ profit with tightening bid-ask. There lies a path to equities in (1) arm race in technology and proprietary platform, (2) strategy differentiation into volume monster vs. trusted advisor, or both? And (3) change in business model in delivering solutions and strategies. Regardless, DB, Citi, and Barcap still controlled north of 35% of volumes. [Notes: any tradable goods without maturity could follow the same path]…Source: http://online.wsj.com/article/SB10001424127887324784404578145330498718030.html?mod=googlenews_wsj

Visible equity volume on visible down-trend: Real money equity volume lowest since 2000, as HFT and ETFS + flowthroughs continue to gain shares. [Note: Incomplete picture. The key word there is visible. How much volume goes through invisible channels nowadays?]…Source: http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/

Powerball is, believe it or not, EV positive: $1.2131 to be more exact; but this does not account for multiple winners and taxes—probably still negative if included. [Note: May the odds be ever in your favor]…Source: http://www.businessinsider.com/the-expected-value-of-playing-powerball-is-128-2012-11

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