Thursday Links

Government Bonds

• Bill Gross still can't figure out who will buy bonds if the Fed doesn't. But, "don't cry for Pimco."
• WSJ's Kelly Evans is with us on bonds now:"Wouldn't surprise me to see 30yr below 3% someday. I realize that sounds crazy."
• People also complain that German bond yields are too low. The German 30 year bond yields 70 bps less than the US 30 year bond.
• Why didn't European banks sell Greek debt when they had the chance? The captioned chart is great.

Bubbles & Bailouts

• Latest bubble IPO "LinkedIn" got crushed at the end of day today. We are watching from the sidelines, as the stock is extremely expensive to borrow. Bloomberg understatement: it "may not be growing fast enough to justify its valuation."
• Howard Marks on How Quickly They Forget. "What makes for cheapness? The attitudes and behaviors of others."
• Paper: "construction starts of record-breaking skyscrapers predict subsequent US stock returns. In the three to five years after the construction of a record-breaking new skyscraper began, per annum stock market returns are around 10 percentage points lower than in other years." Prechter would be proud!
• A secret Federal Reserve bank bailout program that is only now being revealed.

Tech

• "Microsoft's total revenue in China, population 1.3 billion, is less than what it gets in the Netherlands, a country of fewer than 17 million."
• "Absolute must watch" video of Paul Graham at TC Disrupt.