Saturday, April 7, 2012

Points of Public Interest

Here are some of this week’s best for your holiday weekend reading...

  1. Gold does Nothing
Why is gold so valuable? Many value investors struggle with owning gold because it produces nothing as an asset. However, gold may be valuable simply for the fact it doesn’t produce anything. Gold has held a special role in storing wealth for centuries and that luster is unlikely to dwindle anytime soon. That being said, a global slowdown that results in disinflation or outright deflation will pressure prices at these levels.
  1. Finance as Wealth Transfer Mechanism: An Interview with James Galbraith
When you look at income inequality, it’s clear that the major driver is the movement of the stock market, especially the NASDAQ. But that’s capital- asset valuations; it’s not “demand for skill.” I’ve often said it’s actually redundant to measure income inequality in the US. You can watch it go by on cable TV, on the stock ticker.”
With the Federal Reserve now explicitly targeting higher stock prices it should come as no surprise that income inequality has quickly returned to peak levels in the past couple years.
  1. Why Google, and Simple, love TxVia
Google has made countless great acquisitions over the past several years and remains a step ahead of the rest. TxVia is a potentially huge source of consumer information from prepaid debit cards.
  1. Is the Court Engaging in Activism if It Strikes Down ObamaCare?
  2. EZ Break-Up Stands to Benefit the Core
Europe’s sovereign debt problems are once again returning to headlines as growth slows, unemployment rises and debt yields for Spain and Italy shoot higher. Over the past few years politicians and pundits alike have constantly argued that a break-up of the Eurozone would be a disaster. The reality is likely much different and may in fact strengthen ties among core countries.  

State and local income taxes are highly regressive:

Source: Citizens for Tax Justice (h/t Angry Bear)

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