Wednesday, April 3, 2013

Oddly Relevant Apr-3-2013


How the Fed fueled an explosion in subprime auto loans: auto loans to subprime borrowers surged 18% in 2012 to 6.6 mm—largely thanks to yield-starved investors soaking up securitized deals and rising demand for cars amidst recovery. [Note: inflation is coming]…Source: http://www.reuters.com/article/2013/04/03/us-usa-qe3-subprimeauto-special-report-idUSBRE9320ES20130403

PIMCO's Gross sees major challenges for 'total return' era: "All of us, even the old guys like Buffett, Soros, Fuss, yeah - me too, have cut our teeth during perhaps a most advantageous period of time, the most attractive epoch, that an investor could experience…Perhaps, however, it was the epoch that made the man as opposed to the man that made the epoch.” [Note: It has never been an easy business, less so with size]…Source: http://www.pimco.com/EN/Insights/Pages/A-Man-In-The-Mirror.aspx

The Bitcoin bubble and the future of currency: Emerging as a very useful currency in police states, or anywhere that monetary policy could fail catastrophically, bitcoins are an uncomfortable combination of commodity and currency. The commodity value of bitcoins is rooted in their currency value, but the more of a commodity they become, the less useful they are as a currency. In many ways, it is indeed a perfect currency— frictionless, anonymous, and cryptographically astonishingly secure—but trusting someone to look after the coins requires the very trust that it was designed to circumvent. Ultimately, the biggest problem with it is hyper-deflation with increasing demand and limited supply. [Note: a long, good piece worth reading]…Source: https://medium.com/money-banking/2b5ef79482cb

The building boom behind internet shopping: 25 million square meters over the next 5 years are needed to store and handle the retailers’ inventory due to online growth, according to a report from real estate research firm Jones Lang LaSalle. [Note: mostly consolidating their existing channels, deliverable lockers also a solution]…Source: http://www.wired.com/business/2013/04/central-park-sized-ecommerce-warehouses/

What’s the best sentence ever formed? Per Quora, it’s “I do not know where family doctors acquired illegibly perplexing handwriting; nevertheless, extraordinary pharmaceutical intellectuality, counterbalancing indecipherability, transcendentalizes intercommunications’ incomprehensibleness.” [Note: rhopalic, pretty cool]…Source: http://marginalrevolution.com/marginalrevolution/2013/04/whats-the-best-sentence-ever-formed.html

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