Best of the Blogs: Why Google Is Investing in Machinima
By Kathleen Culliton May 07, 2012 10:50 am
Minyanville's daily roundup of some of the best financial commentary from around the Web.
This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.
All Things D
"Google (GOOG) has been handing out money to video-makers so they’ll make more stuff for YouTube. Now it’s putting money into a video-maker itself. The search giant is set to invest in Machinima, one of the most popular networks on YouTube, via a funding round that should close within a month. Machinima focuses almost exclusively on YouTube videos for and about video game players, and generates more than a billion views a month." (Also read Google Scrambles as Consumers Move to Mobile.)
Time Magazine: Global Spin
"Though it’s an obvious cliché (and one that has already been used here in a related story last autumn), winning the Elysée may have been the easy part for French president-elect François Hollande. Given the severity of the economic problems facing France and its euro-zone partners—and the hopes of French voters and contrasting fears of global financial markets—the real work for the newly elected Hollande now awaits."
New York Times: Economix
Link: Incentive Perversity
"It’s all about incentives. The richer the reward, the more willing you are to work hard and take risks, and the faster the economy will grow. Sloth and fear are singled out as economic sins that could condemn us to stagnation. Only the desire for more, more, more than anybody else can elicit the bold energy that economic growth requires. Only greed can redeem us. By this logic – elaborated by Mitt Romney’s former business partner Edward Conard in a recent New York Times profile – income inequality benefits us all."
Dr. Housing Bubble
"Robert Shiller of the famed Case-Shiller Index came out only a few days ago stating that housing may not recover for over a decade. As dire as this may sound, we have a similar example to look at in Japan. It wasn’t like he stated this just to cause a stir but talked about compressed household wages, record low mortgage rates, and a large pipeline of distressed inventory. Even though real estate values are now down 35 percent from their peak taking values back to 2002 (a lost decade) we would need to increase housing values nationwide by 50+ percent to get back to the peak." (Also read Can the US Economy Recover Without a Housing Recovery?)
Reuters: Breaking Views
"The Buffett Rule fuels a perception that the Berkshire (BRK-A) boss has chosen sides – not just on taxes, but in a take-no-prisoners political battle being waged far from America’s heartland. That isn’t necessarily good for Berkshire. The company’s stock has underperformed the S&P 500 (SPY) index this year, a disturbing trend that is already making shareholders cranky. Throw in a piece of contentious legislation bearing Buffett’s name that looks designed solely to score points on the campaign trail and it could tip the scales for many investors." (For related content, see Earnings Just Got Serious For Buffett's Berkshire.)
No positions in stocks mentioned.
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