What we’re reading (12/19)
“NY Fed President Williams Says Some ‘Technical Factors’ Distorted November’s CPI Reading Downward” (CNBC). “New York Federal Reserve President John Williams said Friday that ‘technical factors’ likely distorted November’s inflation data, pushing the headline reading lower than it otherwise would have been…The consumer price index rose at a 2.7% annualized rate last month, a delayed report from the Bureau of Labor Statistics showed. Economists polled by Dow Jones expected the CPI to have risen 3.1%.”
“Musk Wins Appeal That Restores 2018 Tesla Pay Deal Now Worth About $139 Billion” (Reuters). “The ruling overturns a decision that had prompted a furious backlash from Musk and damaged Delaware's business-friendly reputation. It assures Musk greater control over the company, which he has said is his main concern, even after shareholders recently approved a new pay package that could be worth $878 billion if Tesla meets certain targets.”
“When Your Private Fund Turns $1 Into 60 Cents” (Wall Street Journal). “For all fund investors, NAV is supposed to stand for ‘net asset value.’ For some, however, it’s turning out to mean ‘not actual value.’ That’s the hard lesson of recent weeks when some funds that invest in private assets have sought to become publicly traded. Prices that investors expected to be stable have collapsed as soon as the portfolios were exposed to public markets. These transitions from private to public cast doubt on Wall Street’s narrative that investors can have their cake and eat it, too. You can have the mild price fluctuations of nontraded assets, or you can have access to your money whenever you want—but it’s turning out that you can’t have both.”
“The Netflix Chief Who Insists He Won’t Ruin Hollywood” (Wall Street Journal). “Sarandos—a student of Hollywood history who worked as a video-store clerk growing up—has long sought an iconic studio property and production lot such as the sprawling Warner Bros. lot in Burbank, Calif., according to people close to him.”
“Mitt Romney: Tax the Rich, Like Me” (Mitt Romney, New York Times). “If, as projected, the Social Security Trust Fund runs out in the 2034 fiscal year, benefits will be cut by about 23 percent. The government will need trillions of dollars to make up the shortfall. When lenders refuse to provide the money unless they are paid much higher interest rates, economic calamity will almost certainly ensue. Alternatively, the government could print more money, inducing hyperinflation that devalues the national debt — along with your savings.”
