Monday June 18, 2012
1. We have noted that the markets are now pretty well aligned with the end of December 2011. So why aren't we seeing more traction? Well the end of December provided a handy line of demarcation. The selling had to conclude to coincide with the calendar mandate for filing taxes. And once it did, the sellers were exhausted, bingo the markets took off.
Now we lack such a line in the sand. So there is no William Travis to draw his sword at the Market Alamo. And we have slipped into the summer doldrums with fund managers on vacation. And so we wait. The Dollar is lower again this morning.
2. One of our themes and predictions is a major melt down in what passes for Higher Education in America. With over a trillion in debt and both a public and private industry dependent on Federal Loans, a collapse there will be just like the sub prime m,mortgage crisis, but without any collateral.
Two items caught my eye in the morning WSJ, whoops make that three. On page A 12 Pell Grants Flunk Out. Studies reveal that colleges and applicants modify their behavior to obtain the grants, students with grants have lower graduation rates, etc. Well sure, the students are living on the grants, attending college is secondary, if that.
On page B1 Computers Carry Water of Pre Trial Legal Work. We noted last week that law schools are decreasing enrollments. Now computers are scanning documents using a process of 'predictive coding.' Unlike humans the computer does not get tired or have to run errands. One less reason for more lawyers.
Also on page B 1 App Developers Who are Too Young to Drive. A happy 13 year old is pictured writing app programs in his bedroom. Like Gates and Dell, he may well decide college has little to offer him.
The first signs of the coming housing collapse in other economies is here. Add the coming collapsed in the belief that everyone should go to college, which will join 20078's everyone should own a house as faulty conventional wisdom.
3. Check out the articles on Section Four today on converting autos to natural gas, you heard it here first.