• The Mighty Potato
    Posted by on July 20th, 2009 at 11:06 am

    Paul Kedrosky points to a fascinating academic study:

    We have estimated the effect of the introduction of the potato on Old World population growth and urbanization. The nutritional and caloric superiority of the potato, and its diffusion from the New World to the Old, allows us to estimate causal effects using a difference-in-differences estimation strategy. According to our most conservative estimates, the introduction of the potato explains 22% of the observed post-1700 increase in population growth. These results show that food and nutrition matter. By increasing the nutritional carrying capacity of land they can have large effects on population.
    To the extent that urbanization serves as a measure of the shift from rural agriculture to urban manufacturing, our estimates also provide historic evidence of the importance of agricultural productivity for economic development. According to our estimates, the introduction of the potato explains 47% of the post-1700 increase in the average urbanization rate. Our estimates suggest that increased agricultural productivity can play a significant part in promoting the rise of urban centers, industry, and economic development. [Emphasis mine]

  • Barron’s on Bed, Bath & Beyond
    Posted by on July 20th, 2009 at 10:51 am

    First Time took a look at Bed, Bath & Beyond (BBBY), now Barron’s comes out with a very favorable article on BBBY.

    Shares of home-furnishings giant Bed Bath & Beyond have climbed 11% in the past year, outpacing those of retailers Target , Wal-Mart and JCPenney , each of which is down at least 10%.
    Still, investors would be foolish to bail out of Bed Bath now. The stock, which last week was at 31 and change, could climb nearly 25% in the next year, according to some savvy investors.
    That is because even in this lousy economy, Bed Bath (ticker: BBBY) is boosting its store base and earnings. Meanwhile, some competitors have gone belly-up, most notably Linens ‘N Things, which began liquidating its 500-plus stores late last year. A shake-out of the competitive landscape bodes well for Bed Bath longer-term, as it picks up market share.
    “This is a high-quality company with lots of financial flexibility,” says David Fording, co-manager of the William Blair Growth Fund (WBGSX), which has held the stock since late last year, when it was around 25. He figures the shares are worth close to 40.

    The shares are inches away from a new 52-week high.

  • The Market Has Other Ideas
    Posted by on July 20th, 2009 at 10:21 am

    Check out this headline:

    Eaton cuts guidance as profit falls 91%

    Naturally, shares of Eaton (ETN) are up 8% today.

  • S&P 500 Nears Eight-Month High
    Posted by on July 20th, 2009 at 10:13 am

    The S&P 500 is currently near its highest level in 8-1/2 months. If the market were to close right now, it would be the highest close since November, although some of the intra-day levels reached back in June were slightly higher.
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  • New York Times editorial; July 17, 1969
    Posted by on July 19th, 2009 at 9:19 pm

    A correction 49 years later:

    A Correction. On Jan. 13, 1920, “Topics of the Times,” and editorial-page feature of the The New York Times, dismissed the notion that a rocket could function in vacuum and commented on the ideas of Robert H. Goddard, the rocket pioneer, as follows:
    “That Professor Goddard, with his ‘chair’ in Clark College and the countenancing of the Smithsonian Institution, does not know the relation of action to reaction, and of the need to have something better than a vacuum against which to react – to say that would be absurd. Of course he only seems to lack the knowledge ladled out daily in high schools.”
    Further investigation and experimentation have confirmed the findings of Isaac Newton in the 17th Century and it is now definitely established that a rocket can function in a vacuum as well as in an atmosphere. The Times regrets the error.

  • Dow Rallies After Escaped Chimpanzee Rings Opening Bell
    Posted by on July 19th, 2009 at 9:15 pm

  • Anyone Remember the TED Spread?
    Posted by on July 17th, 2009 at 2:10 am

    On October 10, the infamous TED Spread peaked at 464 basis points. Now it’s down below 35 basis points.
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  • The Goldman Sachs Careers Page
    Posted by on July 16th, 2009 at 3:49 pm

    Look, I help my readers out. Here’s the Goldman Sachs “Careers” part of their website.
    Be sure to tell them that you read this blog religiously — and you’ll be so in.
    One more thing, here are the Do’s and Don’ts for your Goldman internship:

    No matter where your summer experience takes you, you can benefit from these useful tips and hints. They may seem simple, but your colleagues will notice if you aren’t acting on them.
    The Do’s
    * Be eager for a challenge
    * Be yourself
    * Be open-minded
    * Be on time
    * Know the dress code
    * Observe and ask thoughtful questions
    * Treat everyone you meet with respect and professionalism
    * Understand that everyone makes mistakes
    * Carry a notebook with you at all times
    * Pay attention to the details
    * Be proactive
    * Show energy and interest
    * Set goals for yourself
    The Don’ts
    * Let a bad day get you down
    * Take on more than you can handle
    * Pretend to know something you don’t
    * Have nothing to do
    * Ask everyone the same questions
    * Take yourself too seriously
    * Talk negatively about co-workers
    * Focus all of your attention on senior management
    * Bring your personal life into the office
    * Surf the web all day (BWAHAHAHAHA – Eddy)
    * Spend working hours on social networking sites or texting friends

  • Iceland Votes to Join EU
    Posted by on July 16th, 2009 at 2:53 pm

    Obviously this isn’t a major story but it’s interesting that this vote only could have happened once the island’s economy went kablooey:

    Iceland’s parliament voted on Thursday to authorise the government to begin accession talks with the European Union, an all but unthinkable prospect until the global financial crisis wrecked the island’s economy.
    Members of parliament voted 33 to 28 in favour of an EU application following a final round of marathon debates that have lasted for several days. Two MPs abstained from the vote.
    The vote paves the way for an application to be sent to Brussels later in July — something which Icelandic Prime Minister Johanna Sigurdardottir has campaigned for vigorously following the country’s financial meltdown.
    If its application is approved by EU member states, Iceland would put the question on actual EU membership to voters in a referendum.

  • Earnings Are Running Better than Estimates
    Posted by on July 16th, 2009 at 2:39 pm

    Bloomberg notes that earnings are running 20% above estimates. The downside is that the bar was set low, as in it was buried a few feet below ground. Secondly, only a handful of companies have reported so far.