james22

Really great. Thanks.

Newly retired, not the SOR I was looking for.

Yeah, heads should roll.

To be fair, it seems it was the market that shot down Treasury's idea. Though arguably they didn't fight for it.

Treasury Seizes the Moment to Revisit Ultra-Long Bond Proposal August 19, 2019 Record-low interest rates make this an opportune time for the Treasury to revisit a proposal it’s shelved in the past: To issue the longest-term debt it can. So for the second time since President Donald Trump took office, the department is exploring the prospect of selling bonds due in 50 or 100 years, going way beyond the current three-decade maximum. https://archive.ph/Lz3C5

The elites ignore what the people tell them as well (Molṑn Labé).

WFC-L at $1,074 today (pays $75/share/year) for a 7% yield, BAC-L at $1,070 (pays $72.50) for 6.8%. https://www.philosophicaleconomics.com/2017/03/a-value-opportunity-in-preferred-stocks/

d) Everything's relative. X% in fixed looks good until Tech stocks return 5X%.

Yeah, unloved for good reason. Probably not undervalued (yet).

Utilities are pretty unloved.

Not really mine either, but I've made a small bet on it. We'll see.

Maybe, but every money manager who is behind because they hid out in cash the beginning of the year and missed the run-up will likely now overweight what's worked (the Magnificent Seven/Eight). Why not? Nothing to lose if already at risk of being fired. And at least their holdings at year's end will look good, if not their performance.

The market was significantly down by the beginning of 4Q 2022, it's up now. I expect a catch-up trade in Tech as or more likely as anything else.

Can China contain Evergrande’s collapse? There has long been a sense that China can somehow defy economic gravity, that the normal rules do not apply, and more gullible analysts have praised the quality of the country’s economic technocrats. That has always been something of a myth; more so under Xi Jinping, when control and security trump all else and markets are supposed to do as they are told. The mythical technocrats are now facing their sternest test in navigating what now seems like the inevitable demise of Evergrande. They will now have to ensure that the fallout does not hammer the rest of China’s economy. https://archive.ph/UW3es

This. We value investors have bored momentum investors for decades by trotting out the axiom that the four most dangerous words are, “This time is different.” For 2017 I would like, however, to add to this warning: Conversely, it can be very dangerous indeed to assume that things are never different. https://wealthtrack.com/wp-content/uploads/2018/01/This-Time-Seems-Very-Very-Different-by-Jeremy-Grantham.pdf When people say things are different, 20% of the time they are right. John Templeton

Everything that can be Invented has been Invented?

Are you arguing there is no such thing as Tournament Theory? Are you arguing organizations don't compete with others for top talent?

Because the organization has no one to underpay (to come out ahead) if they overpay the janitor.

No, you couldn't.

It's not the CEO working harder, it's all those competing for the job. "Tournament Theory" How would that benefit shareholders? You only come out ahead overpaying one or a few if you can underpay more.

It's not higher equity incentives they are talking about. It's that overpaying CEOs allows you to underpay those vying for the job. Shareholders come out ahead. And sure, you could make the same argument for any other job that has the same ratio of contenders. Can you name any?

Nah, different dynamic. Another interesting argument for high executive pay is called tournament theory. See Milgrom and Roberts (1992). This applies to large enterprises with a sizeable team of executives, with a highly paid chief executive officer (CEO), along with several other vice presidents who are in line for consideration to become a future CEO. By paying the CEO generously and well beyond what is economically justifiable on the basis of the CEO’s contributions per se, there is a strong incentive for the other executives to put in extra effort so they will become that chief executive, with all the high pay and perquisites, in the future. From the perspective of the shareholders, the gain from those collective extra efforts is worth the high salary to the last winner of the CEO “tournament.” https://saylordotorg.github.io/text_principles-of-managerial-economics/s05-11-manager-motivation-and-executi.html