The problems of HFT, Joe Stiglitz edition
Reuters
The most interesting and provocative thing to be written of late about financial innovation in general, and high-frequency trading in particular, comes from Joe Stiglitz.
shared by reddit/Economics, @foxjust, @TimHarford, @Noahpinion
 

Out of Ammo? The Eroding Power of Central Banks
Der Spiegel
Since the financial crisis, central banks have slashed interest rates, purchased vast quantities of sovereign bonds and bailed out banks. Now, though, their influence appears to be on the wane with measures producing paltry results. Do they still have control?
shared by @Alea_, @EconBrothers, reddit/Economics, Naked Capitalism, @bondscoop
 

The Biggest Predictor of How Long You’ll Be Unemployed Is When You Lose Your Job
fivethirtyeight.com
One characteristic distinguishes the long-term unemployed from the rest of America’s jobless. It isn’t how many hours they worked at their old job, or what industry they came from, or even their level of education. It’s bad timing.
shared by @M_C_Klein, reddit/Economics, @ProPublica, @rortybomb, @mccarthyryanj
 

High-Speed Traders Said to Be Subpoenaed in N.Y. Probe
Bloomberg
New York Attorney General Eric Schneiderman sent subpoenas to six high-frequency trading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies.
shared by Here Is The City, @volatilitysmile, @JoeSaluzzi, @JohnLothian, NYT Dealbook
 

US financial showdown with Russia is more dangerous than it looks, for both sides
The Telegraph
The US Treasury faces a more formidable prey with Russia, the world’s biggest producer of energy with a $2 trillion economy, superb scientists and a first-strike nuclear arsenal
shared by @JacobWolinsky, @edwardnh, Naked Capitalism, @mhewson_CMC
 

SEC Charges Former BP Employee with Insider Trading During the Deepwater Horizon Oil Spill
SEC.gov
SEC announces insider-trading charges against a former BP employee who allegedly profited from nonpublic information about the extent of the oil spill arising from the Deepwater Horizon oil rig explosion in 2010.
shared by @matt_levine, @AmyResnick, @JacobWolinsky
 

Derivatives and the Eurozone crisis
VOX
Did CDS help cause a European sovereign debt crisis?
shared by @MarkThoma, @FGoria, @TFMkts, @pdacosta, @Kiffmeister
 

Amazon and Google are in an epic battle to dominate the cloud—and Amazon may already have won
Quartz
In technology, it’s sometimes good to let a pioneer figure out the pitfalls of a new market. Apple’s iPod transformed music listening after countless lesser MP3 players failed to make a real dent. Google is now trying to do something similar in cloud computing.
shared by Abnormal Returns, @davewiner, @AntDeRosa, @Techmeme
 

How a 56-Year-Old Engineer’s $45,000 Note Loss Spurred SEC Probe
Bloomberg
Jeff Steckbeck didn’t read the prospectus. He didn’t realize the price was inflated. He didn’t even know the security he read about online was something other than an exchange-traded fund.
shared by Here Is The City, @JohnLothian
 

When use of pseudo-maths adds up to fraud
Financial Times
In a paper entitled Pseudo-Mathematics and Financial Charlatanism, four mathematicians make the case that the vast majority of claims being made for quantitative investment strategies are false.
shared by @EmanuelDerman, @retheauditors, @Noahpinion, @TheIntuitInvest, @Kiffmeister
 

Tight Job Market in U.S. Cities Prompts Higher Pay
Bloomberg
To hire 10 to 15 project coordinators this year, Sabre Commercial Inc. has boosted pay 10 percent and added a 401(k) retirement plan.
shared by @Fullcarry, reddit/Economics, @cate_long, @nasiripour
 

How Americans Die
Bloomberg
Americans die in smaller portions each year, but what kills us is changing.
shared by @ModeledBehavior, @AnnieLowrey, @mccarthyryanj, @MichaelKitces