Tim Travis'  Instablog

The article below is an excellent depiction of the disconnect in investors minds between the perceived "safety" of bonds, and the actual risks defined as the permanent losses of capital should interest rates rise. Treasury bonds are absolutely terrible investments at these prices and so are many of the corporate and municipal bonds that investors have bid up to ridiculous level. The fact that so many people are wary of the stock market is one of the most bullish indicators, although we at TTCM see a bifurcated market with various pockets of opportunity, as opposed to any severe undervaluation of the market as a whole.

http://www.bloomberg.com/news/2012-10-09/gross-s-burning-bond-market-fails-to-frighten-investors.html

This was a truly excellent publication put out by the Columbia School of Business students. Particularly insightful are the interviews with Joel Greenblatt, and the investment team at Loews. If you take the time to read it you won't be disappointed.

http://www4.gsb.columbia.edu/filemgr?&file_id=7312109

As if there wasn't enough evidence of how ridiculous the regulatory environment has gotten, the below WSJ article describes how the Federal Reserve won't share their formulas for the stress tests. This process is so complicated and there is so much information that it is virtually impossible for any one formula to be right, but not sharing how things are being calculated really creates a lack of confidence in the process. Just as stupid is the fact that if a bank requests too much in dividends or share buybacks, the bank has to completely begin the process again, as opposed to the Federal Reserve just confirming what amount they can return to shareholders. It is this type of uncertainty that stifles lending and economic growth at the worst possible times for our economy and changes must be made.

http://online.wsj.com/article/SB10000872396390444024204578044591482524484.html?mod=WSJ_hps_LEFTTopStories