Tuesday, October 15, 2013

Apple is a luxury good with mass appeal

Analysts were rooting for Apple to go low end with its iPhone 5C. Instead, Apple decided to price it pretty high. It was not ready to tarnish its premium brand. It should not and it will not. On the contrary, it seeks to extend its premium brand. The hiring of Burberry CEO takes the game to a whole new level:

Apple Hires Burberry CEO in Tim Cook’s Best Decision Yet


Now think about the iWatch project. It's not going to be something dueling with Samsung's pathetic Gear. It's going to be a fashion item. It's going to be a Michael Kors watch with mass appeal. Design, design, design.

She is wicked smart.


Monday, October 14, 2013

Oxymoron Nobel prize in economics

The economics Nobel has been quite controversial in recent years. Today's announcement is utterly strange: Eugene Fama is known for his Efficiency Market Hypothesis which has never been tested affirmatively, and its influence has waned because of massive market failure in the last financial crisis. Yet, he is awarded the prize at the same time as Robert Shiller, who is known for various works that demonstrate, among other things, that market is not efficient or bubble prone!

And, Lars Hansen, known for developing some testing techniques, in between these two?

Sunday, October 13, 2013

Debt ceiling deal illusive, Reid may hold the card

Facing an imminent debt ceiling deadline with dire consequences of US default, no deal yet seems likely to emerge on time.

Every single proposal from the House and Senate Republicans has been shot down by the White House or the Senate. Obama and Senate majority leader Harry Reid have been holding firm. To see where the deal dynamics is headed, it's important to understand why they're doing what they're doing: holding firm.

Reid: Soft-spoken, combative Obama partner vs GOP



With public opinions shifting against the House Republicans over the government shutdown, who is going buckle first? 


Thursday, October 10, 2013

Melt up

So we see futures are all pointing up, perhaps a deal out of the Washington gridlock is in the work?

This is all good:

Ignore all the noises.

But what's the signal? The yield curve still upward sloping? And slowly flattening?

Wednesday, October 9, 2013

Why Obama stood firm


In the meeting with House Democrats on Wednesday evening, Mr. Obama held firm to his stated intention to negotiate with Republicans only after the government is reopened and the debt ceiling is raised. He told Democrats that if he gives in now, Republican demands would be endless. “The only thing not on their list is my own resignation,” he told Democrats, according to a lawmaker in the room.
Looks like Mr.Obama has learned his lessons dealing with the GOP. 

For the full report, see 
As Pressure Mounts, House G.O.P. Weighs Short-Term Debt Deal