Friday Breakfast Links

This MF thing is still causing a massive dislocation in the futures industry. It’s not just the employees of MF Global that are being hurt. There were people that earned their livelihoods from trading or servicing customers that now are out of business. The industry is extremely competitive, and never stops. When you aren’t there one day, someone else gets the trade, or earns the brokerage. I bet the opportunity cost to the industry of the MF Global management shenanigans was greater than 1 billion.

There are a lot of economic misconceptions. Here are three that need to die. My kids are learning Chinese, but it’s not because I think they will own us. It’s because they are going to be a large economic presence in their lives. I recall people in the 1980’s saying Japan was going to own us and we all know how that turned out. The Chinese economy could burst at any time.

Looks like there is demand for the Groupon ($GRPN) IPO. Bully for them. They doubled their money based on the Google ($GOOG) buyout number. Good luck in running your business.

Cattle prices are high, but don’t forget to hedge. Things can turn on a dime in these volatile markets. ($LE_F)

You might read this to get an education in what Marxism really is. The writer worked for a totalitarian government. He has a few choice words for Occupy Wall Street.

Hank Paulson is teaching at the University of Chicago. Maybe he is having second thoughts. The culture of professorship is very different there, especially in the economics department.

Maybe there is room for us old codgers just yet. Or, maybe not….

Europe is doomed. But, I don’t think they will go to war over it. One blogger I saw postulated an end to the Euro would mean the beginning of a war. I think the Europeans have seen too much bloodshed over the centuries, especially the last one, to sharpen their sabers again.

Jammin’ on a Friday. Tip of the hat to a man in DC you should follow, @LansingG

  • Dave O

    Re war in Europe, I expect you are right.  Although bloodshed seems inevitable.  There is a long history of renegade killing squads, Red Brigade, IRA etc.  As the people in certain countries realize their future is bleak, and their sovereignty forfeit, I expect the radicals to step up. It is human nature, and it is surely part of the European existence.  Same as it ever was…

  • Ddurchholz

    My daughter took a year of Mandarin her final year of college, taught by a native Chinese.  And, she spent a month in various parts of Asia as part of a travel/study course……….  I like you don’t think China will dominate us, but do believe they, and other Asian countries are going to be an economic force in years to come.  So, learning about their culture is as important as understanding business.  She enjoyed the trip…………except for “chicken feat.”

    D Durchholz