Linkfest: Volcker rule set to bite; Is economics a science, and are we in an era of ‘great stagnation?’
Categories: Linkfest
Today’s most shared: Wall Street nervously awaits Volcker rule… Europe fines banks for benchmark fixing… SEC gives corporations a pass on disclosing political contributions… Are we in a new era of ‘great stagnation?’ … Inflation as insurance against shocks and liquidity traps… Complementarity in economic theory: is it OK that different models give different answers? Physics doesn’t have a grand unified theory either… Foreign stocks historically provided diversification, but correlation may be higher going forward… How to avoid hiring a psychopath.
Wall Street Sweats Out Volcker Rule With 18% of Revenue in Play
Bloomberg
Wall Street banks, which already shut proprietary trading units that helped fuel record profits, are girding to learn next week how much revenue the Volcker rule may cut from the $44 billion they say comes from market-making.
shared by @JohnLothian, Crossing Wall Street, @MattGoldstein26
Bloomberg
Wall Street banks, which already shut proprietary trading units that helped fuel record profits, are girding to learn next week how much revenue the Volcker rule may cut from the $44 billion they say comes from market-making.
shared by @JohnLothian, Crossing Wall Street, @MattGoldstein26
Regulators Set to Approve Toughened ’Volcker Rule’
Wall Street Journal
Federal regulators are expected next week to approve a toughened version of the so-called Volcker rule, ending years of wrangling over the controversial provision of the Dodd-Frank law and opening a new phase of stricter oversight for Wall Street with restrictions on the trading banks can do with their own money.
shared by @LaurenLaCapra, Naked Capitalism, @IvanTheK, @eisingerj
Wall Street Journal
Federal regulators are expected next week to approve a toughened version of the so-called Volcker rule, ending years of wrangling over the controversial provision of the Dodd-Frank law and opening a new phase of stricter oversight for Wall Street with restrictions on the trading banks can do with their own money.
shared by @LaurenLaCapra, Naked Capitalism, @IvanTheK, @eisingerj
Europe to unleash heavy rate-fixing fines
Financial Times
Brussels will unveil hefty fines as soon as Wednesday on global banks that allegedly formed cartels to rig two global interest rate benchmarks, in a settlement that is set to break European antitrust enforcement records.
shared by @SonyKapoor, Naked Capitalism, @JacobWolinsky, @LorcanRK
Financial Times
Brussels will unveil hefty fines as soon as Wednesday on global banks that allegedly formed cartels to rig two global interest rate benchmarks, in a settlement that is set to break European antitrust enforcement records.
shared by @SonyKapoor, Naked Capitalism, @JacobWolinsky, @LorcanRK
The $5 trillion dilemma facing banking regulators
Reuters
There’s only a certain amount of liquidity to go around — and under Dodd-Frank rules, a huge proportion of that liquidity has to be available to exchanges and clearinghouses.
shared by Naked Capitalism, @Kiffmeister, @hblodget, @mccarthyryanj
Reuters
There’s only a certain amount of liquidity to go around — and under Dodd-Frank rules, a huge proportion of that liquidity has to be available to exchanges and clearinghouses.
shared by Naked Capitalism, @Kiffmeister, @hblodget, @mccarthyryanj
Keeping Shareholders in the Dark
New York Times
Editorial: Last week, the S.E.C. unwisely removed from its regulatory agenda a plan to consider a rule to require public companies to disclose their political spending.
shared by @lucymarcus, @ThemisSal, @moorehn
New York Times
Editorial: Last week, the S.E.C. unwisely removed from its regulatory agenda a plan to consider a rule to require public companies to disclose their political spending.
shared by @lucymarcus, @ThemisSal, @moorehn
The Honest Broker: Is Growth Getting Harder? If so, Why, and What Can We Do About It?
equitablegrowth.org
Brad Delong: A reader’s guide to the techno-growth stagnation arguments of Robert Gordon, Tyler Cowen, and Brink Lindsey. The arguments are powerful. The authors are very serious economists. I wind up skeptical, and optimistic.
shared by Marginal Revolution, @ATabarrok, @Noahpinion, @interfluidity
equitablegrowth.org
Brad Delong: A reader’s guide to the techno-growth stagnation arguments of Robert Gordon, Tyler Cowen, and Brink Lindsey. The arguments are powerful. The authors are very serious economists. I wind up skeptical, and optimistic.
shared by Marginal Revolution, @ATabarrok, @Noahpinion, @interfluidity
The Obama Administration Took The Platinum Coin Option More Seriously Than It Let On
Huffington Post
WASHINGTON — The Obama administration was serious enough about manufacturing a high-value platinum coin to avert a congressional fight over the debt ceiling that it had its top lawyers draw up a memo laying out the legal case for such a move.
shared by @TheStalwart, @kevinroose, @danprimack, @moorehn, @JacobWolinsky
Huffington Post
WASHINGTON — The Obama administration was serious enough about manufacturing a high-value platinum coin to avert a congressional fight over the debt ceiling that it had its top lawyers draw up a memo laying out the legal case for such a move.
shared by @TheStalwart, @kevinroose, @danprimack, @moorehn, @JacobWolinsky
Inflation as Insurance
ashokarao.com
Let’s assume that the costs of inflation outweigh the benefits. How would you react if someone advised against purchasing health insurance because the cost outweighs the expected benefits?
shared by @ObsoleteDogma, @counterparties, @Noahpinion, reddit/Economics, @CardiffGarcia
ashokarao.com
Let’s assume that the costs of inflation outweigh the benefits. How would you react if someone advised against purchasing health insurance because the cost outweighs the expected benefits?
shared by @ObsoleteDogma, @counterparties, @Noahpinion, reddit/Economics, @CardiffGarcia
Argentines Hit With 35% Foreign Credit Card Tax for Holidays
Bloomberg
Argentine President Cristina Fernandez de Kirchner increased a tax on credit card purchases abroad ahead of the southern hemisphere summer vacation period to stem a hemorrhaging of reserves to a seven-year low.
shared by reddit/Economics, Economy Watch, @prchovanec
Bloomberg
Argentine President Cristina Fernandez de Kirchner increased a tax on credit card purchases abroad ahead of the southern hemisphere summer vacation period to stem a hemorrhaging of reserves to a seven-year low.
shared by reddit/Economics, Economy Watch, @prchovanec
Is There One Economic Model to Rule Them All?
The Fiscal Times
It’s important to remember that models are built to answer specific questions. We don’t have one grand model that can explain everything, so the model that is used depends upon the issue being examined. Think of, for example, a different type of model of the world, a map.
shared by @interfluidity, @petercoy, @MarkThoma, reddit/Economics, @Noahpinion
The Fiscal Times
It’s important to remember that models are built to answer specific questions. We don’t have one grand model that can explain everything, so the model that is used depends upon the issue being examined. Think of, for example, a different type of model of the world, a map.
shared by @interfluidity, @petercoy, @MarkThoma, reddit/Economics, @Noahpinion
Does it matter whether or not economics is a ‘science’?
Reuters
It’s important to understand that economics isn’t fortune-telling. If you judge a single economic model by its ability to predict the future, inevitably it will fail you.
shared by @MarkThoma, reddit/Economics, @Noahpinion, @CardiffGarcia
Reuters
It’s important to understand that economics isn’t fortune-telling. If you judge a single economic model by its ability to predict the future, inevitably it will fail you.
shared by @MarkThoma, reddit/Economics, @Noahpinion, @CardiffGarcia
Herbalife Soars As Belgian Court Confirms Not A Ponzi Scheme
ZeroHedge
Unfortunately for Bill Ackman, another leg of the "short Herbalife to the grave" thesis just broke when a Belgian Appeal Court hearing overturned its previous findings.
shared by @BarbarianCap, @IvanTheK, @SconsetCapital
ZeroHedge
Unfortunately for Bill Ackman, another leg of the "short Herbalife to the grave" thesis just broke when a Belgian Appeal Court hearing overturned its previous findings.
shared by @BarbarianCap, @IvanTheK, @SconsetCapital
Foreign Stocks For The Long Run
rickferri.com
Nearly every financial adviser will tell you that foreign stocks should be part of a well-diversified portfolio. Yet, an analysis of the data shows that non-US (foreign) stocks as an asset class have underperformed the US market by a meaningful amount for more than 40 years, in addition to having higher risk. So, why do it?
shared by Abnormal Returns, @MebFaber, Reformed Broker
rickferri.com
Nearly every financial adviser will tell you that foreign stocks should be part of a well-diversified portfolio. Yet, an analysis of the data shows that non-US (foreign) stocks as an asset class have underperformed the US market by a meaningful amount for more than 40 years, in addition to having higher risk. So, why do it?
shared by Abnormal Returns, @MebFaber, Reformed Broker
How to Avoid Hiring a Psychopath as CEO
Wall Street Journal
One study of over 200 executives in management-development and succession-planning programs at seven companies found that this elite group had about four times the concentration of full blown psychopaths as the population at large. Dr. Paul…
shared by @MattGoldstein26, @EpicureanDeal, @mccarthyryanj
Wall Street Journal
One study of over 200 executives in management-development and succession-planning programs at seven companies found that this elite group had about four times the concentration of full blown psychopaths as the population at large. Dr. Paul…
shared by @MattGoldstein26, @EpicureanDeal, @mccarthyryanj
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