Does Being Rich Make You Mean?

Posted on January 30, 2014 by Kevin S. Willis

Playing Monopoly reveals the truth! Being wealthy makes you self-entitled, rude, and uncharitable!

Poor people are just nicer. But then, maybe that’s why their poor.

I feel skeptical. Not necessarily that all the data is wrong or cooked or perhaps not revelatory, and the tendency of human beings to attribute clearly “rigged” advantages in a situation to their own virtue or hard work is an objective truth (most of us, I suspect, have seen it all our lives).

But I just get the sense that the guy doing the presentation already has settled on his desired conclusions, and perhaps things are more complicated than the talk displays. For example, could it be that people who obtain wealth without work are ruder and less charitable, but those that work hard and are well-rewarded for their hard work are nicer and more charitable than your average non-wealthy person.

People in more expensive cars are more prone to break traffic laws or threaten pedestrians? I have a hard time believing that’s much more than coincidence.

Speaking of mean wealthy people . . . are gay people mean? They must be, if gay people are all rich!

Freakonomics takes on the myth of homosexuality = wealthy. Well, at least for gay men.

Filed under: homosexuality, TED Talks | 5 Comments »

Morning Report – 4Q GDP comes in at 3.2% 1/30/14

Posted on January 30, 2014 by Brent Nyitray

Vital Statistics:

Last Change Percent
S&P Futures 1780.7 9.5 0.54%
Eurostoxx Index 3010.3 -1.2 -0.04%
Oil (WTI) 97.75 0.4 0.40%
LIBOR 0.238 0.002 0.85%
US Dollar Index (DXY) 80.96 0.456 0.57%
10 Year Govt Bond Yield 2.71% 0.04%
Current Coupon Ginnie Mae TBA 105.8 -0.1
Current Coupon Fannie Mae TBA 104.4 -0.2
RPX Composite Real Estate Index 200.7 -0.2
BankRate 30 Year Fixed Rate Mortgage 4.31
Markets are higher this morning after 4Q GDP came in at +3.2%, as forecast by the Street. Facebook is up big on good earnings. Bonds and MBS are still digesting the FOMC meeting and are lower
The advance estimate of fourth quarter GDP came in at +3.2%. Consumption rose 3.3%, which was below the 3.7% estimate. The Commerce Department estimates that the shutdown took .3% off of the number. Finally, the inventory build that drove the large (4.1%) third quarter number wasn’t reversed in this reading.
The FOMC decided to reduce asset purchases by another $10 billion per month yesterday, which markets took in stride. The decision was unanimous, the first one the Bernank has had since 2011. Janet Yellen now takes the reins with more hawkish Committee. The Fed’s balance sheet will continue to grow, just slower than it did last month. The Fed’s balance sheet just passed 4 trillion (it was under 1 pre-crisis)

Pulte reported fourth quarter earnings, which beat expectations. Revenues were in line, but EPS beat by 12 cents. Gross margins expanded as the company raised prices – average selling prices jumped 13% to $325,000, while unit volume dropped by 4%. Orders are down 18%. The stock is up a buck (around 5%) pre-open.
December Pending Home Sales dropped dramatically (down 6.1% year-over-year and 8.7% month-over-month). The Street was forecasting a drop of .3%, so this was a big miss. November was revised down as well. This would comport with the big drop in mortgage applications we have seen.

Filed under: Morning Report | 3 Comments »