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Alright already. Y'all have been after me like a three-peckered billy goat to bring back Bonus Bananas, so here's a fresh batch. And none too soon, it appears, as this happens to be the 1-year anniversary of the first Bonus Bananas ever. How 'bout that? Let's get it on.

1) Incoming Deutsche CEO: 'Powerful Consolidation' Coming in Banking (Safe Haven) - Sort of a good news - bad news kind of deal. Incoming DB CEO Anshu Jain says the bad news is that the industry is going to continue contracting, but the good news is that the banks that survive will see increased margins. He also joins his fellow bank CEOs in reciting the mantra that you shouldn't be in banking for the comp.

2) Citi Joins The Cost-Cutting Ranks By Slashing Bonuses Up To 70% (Zero Hedge) - Okay, the news here isn't that Citi is slashing bonus pay - I mean, what bank isn't? The news here is how these huge cuts are affecting the local economy in NYC. Each Wall Street banker supports three non-finance people in New York with their bonus, and now those strippers, waiters, and limo drivers are hurtin' for certain.

3) Internet economy set to hit $4.2T in 2016, half of world's population will be online (Venture Beat) - These numbers are just staggering. I'd be interested to see the statistics on adoption rates for the telephone after it was invented. I'm guessing half the world's population didn't have a phone a mere 20 years after its invention. And $4.2 TRILLION? Unreal.

4) The laws of economics for the drinker and banks (reszatonline) - The European crisis explained from the perspective of a bar owner and the drunks that keep him in business. If you're like me, people ask you to explain macro stuff in plain English all the time. Well, now you can point them to this when they ask what's going on in Europe. Everyone understands how a bar tab works.

5) Sauce Hollandaise (The Economist) - Great piece about the likely next President of France, socialist Francois Hollande. He hates bankers and he makes no bones about it. He thinks Dodd-Frank would be good for France, he thinks CDOs should be illegal, and he wants to ban stock options. Wait...what?

6) Is Facebook run by sociopaths? (CNET) - Facebook COO Sheryl Sandberg set European chins wagging when she pointed out that Facebook wasn't overly concerned about offending the delicate privacy sensibilities of a continent of people currently circling the economic drain. The most shocking thing about the article? The notion that Facebook might actually be in business to make money. Quelle horreur!

7) INCOME INEQUALITY IS BAD FOR SOCIETY. REALLY BAD. (Sociological Images) - Time for a little chart porn. We all know that the massive and growing divide in income inequality is probably not a good thing for the country long term. But just how bad is it? Take at look at these charts. They make Saw III look like Winnie the Pooh.

8) What Google's Larry Page Doesn't Understand (Harvard Business Review) - Unless you've been living under a rock, by now you're probably aware that Google is changing its privacy policy as of March 1. And the kicker? You can't opt-out. Yeah. Kind of a dick move. Google is selling it as a way to bring you better, more focused content, but it's really just another step along the way toward the total erosion of privacy online. At this point, I think it's inevitable and we all just need to get used to the idea.

9) Amazon's Hit Man (Business Week) - Amazon's takedown of the publishing business is almost complete, and they did it in a remarkably short period of time (less than 20 years versus the nearly five centuries publishers ruled with an iron fist since Gutenberg first got the presses rolling). This is a great piece about Amazon and Larry Kirshbaum who recently took over Amazon Publishing - the Maginot Line into print publishing that Amazon was thought to never cross.

10) The 10 Keys To Selling Anything (Altucher Confidential) - James has done it again. Another great post that'll make you a better person for having read it. Everyone needs to be a salesman today, and James lays out a solid game plan for being the best in your business. Great stuff.

Some of you might not like the Video of the Week this week. To that I say tough shit. It's a trailer for an upcoming movie written and directed by Bobcat Goldthwait. To many of you Bobcat is just a second-rate stand-up comedian with a speech impediment, but that's because you're unfamiliar with his work behind the camera. He creates movies that contain some of the darkest humor I've ever seen. And his next movie, God Bless America, looks like it might push the boundaries even further. Attacking all that is inane in America, this looks like a pretty righteous killing spree. I'm in:

And for those wondering what else Bobcat has made, Robin Williams was fantastic in World's Greatest Dad:

Let me know what you think of the Bananas, and have a great weekend guys!

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Comments (32)

  • Bobb's picture

    ahh yes, welcome back.

  • prospie's picture

    i'm skeptical about chart 6 (social mobility) on the income inequality page. Maybe I'm just ignorant but I thought the US stood pretty high relative to other countries as far as mobility comparisons.

  • TNA's picture

    That social inequality chart is bullshit. We allow millions of uneducated and non English speaking people into this country, illegal or otherwise. That will skew the data.

    Nothing like comparing the USA to largely xenophobic European nations.

  • UFOinsider's picture

    Point #1 is why I came to finance. There is tremdous chaos and disruption of the old ways, and change = opportunity. "This is the way we've always done it" doesn't fly anymore and that's fine by me.

    Get busy living

  • Edmundo Braverman's picture

    I don't know why the social mobility chart is so hard to believe. Look at it this way:

    Let's say lower class in America is any family earning under $25,000 a year all-in. This is a smallish segment of the population and reports of generational poverty bear out that the majority of Americans raised at or below this income level stay there.

    Now let's look at the wealthy. For argument's sake, let's say that's any family making over $250,000 a year. This segment of the population is far smaller than even the very poor. Odds are if you're born into this environment you're going to stay there - if for no other reason than the safety nets put in place by your parents (see: Paris Hilton). So not a lot of downward mobility there.

    Finally we come to the middle class. Basically anything from $25,000 a year to $250,000 a year. This represents the vast majority of Americans (think 85%+), and while a family making $40,000 a year might spawn a generation averaging $80,000 a year, that generation is still solidly middle class. There is also a lot of downward potential in the middle class. This recession has shown us plenty of $150,000 families struggling to get by on their "new normal" $50,000 salary.

    All the chart in question is pointing out is that it's highly unusual for someone to change social classes in the US, and I would say the numbers make that pretty obvious.

    Or am I reading it wrong?

  • turtle's picture

    ah thanks for this!

    "If you survive to my age and you rack up a CV like mine, you can look at HR and say, "Fuck you. I don't try out."- Eddie

  • happypantsmcgee's picture

    Its statistically intuitive that someone in the majority would stay in the majority a high percentage of the time.

    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • TNA's picture

    If you are rich it is obviously easier to stay that way, but when you compare social mobility of the lower class you dilute any gains they make by continually allowing unskilled workers into this country. Mobility in the US also takes longer because you have a continual influx of this unskilled labor.

    We have free k-12 education, affirmative action, community colleges and an ever increasing hand out system. Plus mobility freedom, the sole reserve currency and no threat of outside invasion. If you cannot improve your life I don't know what to say to you.

    Charts like that do nothing be drum up class warfare as if it is the governments job to make things more "fair". Fair being defined by whoever is in power.

    Succeed or fail, up to you.

  • Edmundo Braverman's picture

    The thing I find funny about that chart is that the countries with the lowest income inequality boast the highest social mobility. What the fuck does social mobility even mean if it can't be quantified by making more money than everybody else?

  • In reply to TNA
    UFOinsider's picture

    ANT:
    when you compare social mobility of the lower class you dilute any gains they make by continually allowing unskilled workers into this country. Mobility in the US also takes longer because you have a continual influx of this unskilled labor.

    This is compounded by the fact that so much of it officially "doesn't exist". It is very intentional, and has allowed the "official" statistics to say what the people in charge want it to say for a very long time. At this point, dealing with immigration [however that is, this is not the thread for that topic] will prove to be the equalizer. The details of what immigration policy is are irrelevant: the official numbers will start to match up with reality again.

    It's impossible to know EVERYTHING, but when the official estimations show that 1/3 of the nation will be speaking another language and that population doesn't even have a strong voting bloc.....the disconnect betwee political rhetoric and reality can no longer be ignored. If I were a politician, I'd see it as an opportunity. If history is any indication, they're slated to be the the newest addition to the middle class.

    Get busy living

  • Edmundo Braverman's picture

    I was also calling bullshit on the income disparity in my home state of Louisiana (one of the previous charts showed it to be one of the highest in the US) so I looked it up. Lo and behold, the chart is right. The top 5% of earners in Louisiana make 11.5x what the bottom 20% make (La was ranked 16th most income disparate state). Must be all the oil money, I guess.

  • In reply to UFOinsider
    TNA's picture

    UFOinsider:
    ANT:
    when you compare social mobility of the lower class you dilute any gains they make by continually allowing unskilled workers into this country. Mobility in the US also takes longer because you have a continual influx of this unskilled labor.

    This is compounded by the fact that so much of it officially "doesn't exist". It is very intentional, and has allowed the "official" statistics to say what the people in charge want it to say for a very long time. At this point, dealing with immigration [however that is, this is not the thread for that topic] will prove to be the equalizer. The details of what immigration policy is are irrelevant: the official numbers will start to match up with reality again.

    It's impossible to know EVERYTHING, but when the official estimations show that 1/3 of the nation will be speaking another language and that population doesn't even have a strong voting bloc.....the disconnect betwee political rhetoric and reality can no longer be ignored. If I were a politician, I'd see it as an opportunity. If history is any indication, they're slated to be the the newest addition to the middle class.

    Fortified southern boarder. Massive expansion of family planning clinics and birth control at the school level, expansion and privatization of the prison system, English only teaching, etc. All will reverse the course we are on.

    But none of that will happen so just make money and watch it burn. The conservatives are the armed ones in this nation so whatever happens when it crumbles isn't going to be some left wing eutopia.

  • In reply to TNA
    UFOinsider's picture

    ANT:
    UFOinsider:
    ANT:
    when you compare social mobility of the lower class you dilute any gains they make by continually allowing unskilled workers into this country. Mobility in the US also takes longer because you have a continual influx of this unskilled labor.

    This is compounded by the fact that so much of it officially "doesn't exist". It is very intentional, and has allowed the "official" statistics to say what the people in charge want it to say for a very long time. At this point, dealing with immigration [however that is, this is not the thread for that topic] will prove to be the equalizer. The details of what immigration policy is are irrelevant: the official numbers will start to match up with reality again.

    It's impossible to know EVERYTHING, but when the official estimations show that 1/3 of the nation will be speaking another language and that population doesn't even have a strong voting bloc.....the disconnect betwee political rhetoric and reality can no longer be ignored. If I were a politician, I'd see it as an opportunity. If history is any indication, they're slated to be the the newest addition to the middle class.

    Fortified southern boarder. Massive expansion of family planning clinics and birth control at the school level, expansion and privatization of the prison system, English only teaching, etc. All will reverse the course we are on.

    But none of that will happen so just make money and watch it burn. The conservatives are the armed ones in this nation so whatever happens when it crumbles isn't going to be some left wing eutopia.


    Maybe, but not the point: the point is that a significant portion of the country isn't officially accounted for. I don't care what the solution is and that conversation goes back and forth. The reality that is needed to move forward is: how can we even pretend to quantify the situation if so much of it doesn't officially exist.

    Take this example: I personally know undocumented workers with steady cash jobs. They're very close, came here with nothing, and live in one room. They split rent, food, and utilities, and the rest of that cash is saved. These guys work 50-90 hour weeks at a decent rate....where is that money? It's totally unaccounted for. I know that every immigrant isn't building a small fortune (some workers go back to S. America and are the 'new lesser rich') but just the same.....how can we build social models with only 2/3 of the data?

    I'm thinking that the current lack of solutions is directly tied to the current lack of any information.

    Get busy living

  • TNA's picture

    Once the boarder is fortified we can negotiate that. I would favor some form of penalty to pay before citizenship and mandatory English speaking. Something along those lines. People without income can be deported, whatever.

    Also, eliminate the 14th Amendment or amend it to apply only to slavery or for historical purposes.

  • ConanDBull's picture

    how do you only have 650 Followers on Twitter? how many WSO users have twitter? lol this is insane

    "Know what to do, know how to do it, and do it hard." - Juan Castillo

    If you are in the Toronto Area join my group "Toronto Prospective Monkeys"
    http://www.wallstreetoasis.com/group/toronto-prosp...

  • In reply to ConanDBull
    Edmundo Braverman's picture

    ConanDBull:
    how do you only have 650 Followers on Twitter? how many WSO users have twitter? lol this is insane

    Assuming you're referring to me, you might be surprised to find that the majority of my followers are NOT members of WSO. Surprises me anyway. I don't think there's a big Twitter community in IB. Trading yes, IB no.

    Or maybe I'm just not that cool.

  • TNA's picture

    650 isn't that bad. I think it takes about 1K to get that viral mass behind you.

  • rufiolove's picture

    Edmundo Braverman:

    8) What Google's Larry Page Doesn't Understand (Harvard Business Review) - Unless you've been living under a rock, by now you're probably aware that Google is changing its privacy policy as of March 1. And the kicker? You can't opt-out. Yeah. Kind of a dick move. Google is selling it as a way to bring you better, more focused content, but it's really just another step along the way toward the total erosion of privacy online. At this point, I think it's inevitable and we all just need to get used to the idea.

    What happened to "Don't be evil?" Sounds like information rape to me... but alas I am too lazy and to switch because google is ingrained in my routine.

  • TNA's picture

    What is the quote? When you don't pay for a service you use you are not the customer you are the product? Go pay for email somewhere and you can control what happens.

    Google is awesome, but easily replaced by paid email and outlook. People want free AND their way. Doesn't work like that.

  • go.with.the.flow's picture

    1) and 2) -- If they are gonna reduce bonuses and still expect top-notch talent. Goodluck!

    8) Any who thinks there's privacy on the web is fucking deluded. Google, Facebook etc. all share data with the U.S. government otherwise they wouldn't be able to operate.

    and...thanks for

    3) Gives me hope that I can escape from cubicle nation an start my own cash money biz

  • In reply to TNA
    duffmt6's picture

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    "For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."

  • In reply to Relinquis
    UFOinsider's picture

    Get busy living

  • In reply to TNA
    UFOinsider's picture

    Get busy living

  • In reply to TNA
    duffmt6's picture

    "For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."