A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the World Wide Web.
Motley Fool's Morgan Housel recounts the numerous ways that the finance industry operates by its own rules to the detriment of investors. Mr. Housel seems amazed at what the industry gets away with in terms of hiding fees, poor performance and a lack of credentials.
The fees discussion is particularly jarring, "Nearly all financial fees are deducted from assets automatically, rather than clients receiving and paying an invoice. This makes them out of sight, out of mind. The irony is that if you are moderately wealthy, advisory fees might be your single largest annual expense -- and you're probably oblivious to them."
Finance is a Strange Industry – Motley Fool
Prominent economist Paul Krugman pushed back on the "France as an economic basketcase" meme with his latest blog post. Professor Krugman notes that in terms of trade, interest rates and credit worthiness, France's economy is at least on par with the vaunted U.S. economy. Most importantly, the post highlights how generous retirement and school age government support has contributed to much higher employment levels than the U.S. in the 25-54 working age demographic.
"What's The Matter With France?" – Krugman, NY Times
Apple and Samsung are on the verge of introducing smartwatches to the market and it's a good time to report that I've come full circle on the prospects for this new market niche. I still don't think the iWatch or Samsung's Gear S will be huge consumer successes, but the potential health care applications – home monitoring of Alzheimer's, depression and cardiac patients for instance – will result in significant growth in the industry over time.
iWatch Rumor Roundup: Everything We Think We Know – Gizmodo
Samsung Gear S: Finally a Smartwatch That Can Make Phone Calls – Gizmodo
A Reuters report tallies up the extraordinary extent of Chinese capital flight. The story recounts the example of Yang Xiuzhu, a director of a provincial construction bureau. Officials allege she accepted over $40-million in kickbacks from developers and then fled to the Netherlands.
Government efforts to repatriate funds are hindered by a lack of extradition treaties between China and Canada, the U.S. and Australia, the most popular destinations for wealthy Chinese fleeing the country's corruption crackdown.
Corrupt Chinese hiding in Western nations elude Beijing's "fox hunt" – Reuters
IMF Warns China On Capital Flight – Forbes
Tweet of the day is a hilarious instructional map for Russian soldiers from @CanadaNATO: A guide for Russian soldiers who keep getting lost & 'accidentally' entering #Ukraine pic.twitter.com/3NIoezQ30M
Diversion: The Library of Congress has digitized thousands of photos from the Great Depression. The results are alternatively poignant, heartbreaking and inspiring
Seeing the Great Depression – The Atlantic
Scott Barlow