Linkfest: JPMorgan’s big settlement; Lonely shorts; Secular stagnation
Today’s most shared: JPMorgan’s $13b settlement dissected… Shorts see big opportunities after big down years… Secular stagnation, world Japanification, liquidity traps, bubbles, and changes in corporate behavior… Bloomberg News restructuring tilts away from news chief Matt Winkler, toward selling terminals everywhere, notably China… FX dealing investigation widens to include gold benchmarks, day trades by sock puppets… Bitcoin big in China as locals evade capital controls… What Dan Loeb would tell the Girl Scouts.
theguardian.com
Why does Sacramento get $2bn? How are mortgages like apples? All your questions about JP Morgan’s settlement answered.
shared by @LaurenLaCapra, @ReformedBroker, Reformed Broker, @SconsetCapital
Washington Post
The settlement is the largest Justice has ever reached with a single company.
shared by @counterparties, @davidweidner
New York Times
Some mortgage experts contend that the settlement is too low given the suspected quantity of loans that should never have been sold to investors.
shared by Reformed Broker, @mccarthyryanj
Wall Street Journal
The biggest settlement between the government and a U.S. company ever grew out of the Justice Department’s discovery of a 2006 meeting in which executives for J.P. Morgan Chase & Co. decided to continue selling shoddy mortgage securities despite red flags.
shared by Naked Capitalism, @nasiripour, @mccarthyryanj
CNBC
Short-biased hedge funds are practically jumping up and down to alert investors to the opportunity to make money.
shared by @firstadopter, @JacobWolinsky
Wall Street Journal
This is a terrible year to be a short seller, but one short is maintaining his bets against the market, expecting another big crash that’ll lead to a windfall for him.
shared by @ritholtz, @counterparties, @StockJockey
touchstoneblog.org.uk
The big debate in global macroeconomics over the past week has been in response to Larry Summer’s IMF speech on ‘secular stagnation’, the idea that Western economies are set for years of low growth.
shared by Business Insider, @TheStalwart, @edwardnh, @carney
New York Times
A gathering of American laureates for Nobel prizes spotlights the differences between two economists — and the skepticism of some scientists about economic theory.
shared by @pkedrosky, @ritholtz, @ReformedBroker, @Noahpinion
Federal Reserve
The Federal Reserve Board of Governors in Washington DC.
shared by @BCAppelbaum, Calculated Risk, Business Insider, @MarkThoma
Wall Street Journal
Two top regulators are raising new—and late—objections to the Volcker rule, arguing it is too soft on banks and threatening to further delay its implementation beyond the year-end deadline set by the Obama administration.
shared by Business Insider, @LaurenLaCapra, @IvanTheK, @eisingerj
Reuters
Yesterday was a big day for layoffs over at Bloomberg, and Kara Bloomgarden-Smoke has the official memo from editor-in-chief Matt Winkler.
shared by @LaurenLaCapra, @pkedrosky, @ritholtz, Naked Capitalism, @humenm
Bloomberg
Currency dealers in London gave information about client orders to day traders who then made bets on their behalf, sidestepping restrictions on personal trading, three people with knowledge of the practice said.
shared by @LaurenLaCapra, @davidenrich, Here Is The City
Bloomberg
The U.K. Financial Conduct Authority is reviewing gold benchmarks as part of its wider probe of how global rates are set, a person with knowledge of the matter said.
shared by @LemaSabachthani, Here Is The City, @JEliasof, @nasiripour, @JohnLothian
Reuters
Hedge fund manager Greg Lippmann, the former Deutsche Bank trader who rose to Wall Street fame after a hefty and lucrative bet against subprime mortgages before the housing market collapsed, said he is still a fan of residential and commercial mortgage bonds going into 2014 and also likes student loan debt.
shared by @JacobWolinsky, @MattGoldstein26, @nasiripour, @DavidSchawel, @jennablan
Calculated Risk
shared by @TheArmoTrader, @SconsetCapital, @calculatedrisk
New York Times
An American expatriate has made a site that maps all the bitcoin trades in real time. One striking thing is China’s nonstop participation, outstripping all of Europe. The map’s creator says it shows bitcoin is a truly borderless currency.
shared by @howardlindzon, @pkedrosky, @ChrisAdamsMKTS
European Union
shared by @SpiegelPeter, @charlesforelle, Marginal Revolution
Vanity Fair
“I find your mismanagement of Girl Scout Cookie sales to be epic and appalling, starting with the disastrous mismanagement of Lemon Chalet Cremes on your watch.”
shared by @ToddSullivan, @JacobWolinsky, @markgongloff, @howardlindzon
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