Two examples of reasonable, rational, sensible blogs today:
1. All the subscribers to the housing Armageddon theories, just look at the data – the US housing market is beginning to recover http://soberlook.com/2012/05/us-housing-market-is-beginning-to.html
Hoards of angry bloggers keep spewing the same line over and over again – housing prices will fall “forever” because of the shadow inventory, etc., etc. People, including many in academia, would deny a housing market improvement even if it stared them in the face. Positive housing news cause many to experience what psychologists call “cognitive dissonance”, as they desperately attempt to rationalize away the data that doesn’t conform to their views.
2. Facebook and the sad case of ethical investment bankers http://brontecapital.blogspot.com.au/2012/05/facebook-and-sad-case-of-ethical.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+BronteCapital+(Bronte+Capital)
In an IPO an investment bank takes a fee from a business to place that stock in financial markets.
Or, more precisely, they take a fee from a business to sell part of that business.
Their customer is the company doing an IPO and they have a legal and moral obligation to get the highest price for the company they are selling. No more. No less…
The investment bank owes a duty to the seller of the IPO and that is all. Whining fools who complain otherwise have allowed their own greed to distort their morality …
Michael Grimes (the Morgan Stanley Banker) … David Ebersman (Facebook’s CFO) … is the client. He paid the fees. Michael Grimes had a duty to act in Ebersman’s interest. Ebersman wanted to sell more shares at a higher price. Michael Grimes and Morgan Stanley obliged even at the cost to their own franchise.
What we have here is an investment banker acting ethically. And the whole financial press is a twitter about it.
I’m going to stick with reading reasonable, rational, sensible bloggers.