Linkfest: Banks and bribery in Beijing; German court deals blow to ECB, currency union; Does HFT=cheating?

Categories: Linkfest

Today’s most shared:

  • Banks and bribery in Beijing.
  • German court deals blow to ECB’s OMT, and why Germans fear inflation more than cancer.
  • Emerging markets hit once again by hot money flows.
  • Is high frequency trading a form of cheating?
  • Today in public relations disasters and Twitter firestorms: JPMorgan’s Masters out of CFTC panel, AOL’s Armstrong backtracks on benefit cuts blamed on ‘distressed babies’.

Chinese Official Made Job Plea to JPMorgan Chase Chief
New York Times
Federal authorities are also investigating whether at least six other big banks hired applicants explicitly to win business from Chinese companies.
shared by @davidenrich, @LaurenLaCapra, Business Insider, @RoubiniGlobal
 
Germany’s constitutional court has strengthened the eurosceptics
Financial Times
To read the ruling, little short of a coup would breach as many constitutional principles as OMT.
shared by @TheStalwart, Marginal Revolution, @mhewson_CMC
 
How Germany Just Undercut the Euro
Bloomberg
Germany’s Constitutional Court has weakened Mario Draghi’s most potent weapon in the battle to save the euro.
shared by @mhewson_CMC, @Convertbond, @economistmeg, @NickMalkoutzis, @wonkmonk_
 
Outright Monetary Infractions by Hans-Werner Sinn
Project Syndicate
The German Constitutional Court has delivered its long-awaited decision on the ECB’s “outright monetary transactions” program. The ruling fully endorses the plaintiffs’ arguments, finding that the ECB’s scheme to purchase potentially unlimited amounts of troubled eurozone countries’ government bonds, does indeed violate EU primary law.
shared by @Alea_, FT Alphaville, Marginal Revolution, @wonkmonk_
 
Sowing Fear: World War I and the Seeds of Hyperinflation
Der Spiegel
There’s a number that illustrates the brutal dynamics of the hyperinflation of 1923 better than anything else. It’s the number four. In the fall of 1923, prices were doubling in Germany approximately every four days.
shared by @FGoria, @Noahpinion, @Alea_, @ObsoleteDogma, @ryanchittum, @Pawelmorski
 
Death by Finance by Dani Rodrik
Project Syndicate
While emerging economies have been hit hard in recent weeks by a severe mood swing in global financial markets, the only surprise is that we are surprised. Economists, in particular, should have learned a few fundamental lessons long ago.
shared by @interfluidity, @rodrikdani, @counterparties, reddit/Economics
 
Why Emerging Markets Should Look Within
New York Times
Self-inflicted political wounds, more than global economic tides, appear to be shaking nations like Argentina, Turkey, Ukraine and Thailand.
shared by Marginal Revolution, @FGoria, @MarkThoma, @tylercowen
 
George Soros picks up $5.5bn as Quantum Endowment fund soars
Financial Times
George Soros’s Quantum Endowment fund had its second-best year ever in dollar terms in 2013, adding $5.5bn to the billionaire’s fortune and putting Quantum back in top place among the most successful hedge funds of all time.
shared by NYT Dealbook, @M_C_Klein, @SimoneFoxman, @SonyKapoor
 
Let weak banks die, says eurozone super-regulator
Financial Times
The eurozone’s new chief banking regulator has warned that some of the region’s lenders have no future and should be allowed to die, heralding a far tougher approach to the supervision across the currency bloc.
shared by NYT Dealbook, @mhewson_CMC, @GTCost, Naked Capitalism, @FGoria
 
JPMorgan’s Masters Said to Quit CFTC Panel After One Day
Bloomberg
Blythe Masters, JPMorgan Chase & Co.’s commodities head, withdrew from an advisory committee of the U.S. Commodity Futures Trading Commission a day after her appointment was disclosed.
shared by @jennablan, @markgongloff, @ObsoleteDogma, Naked Capitalism
 
High-Speed Trading Isn’t About Efficiency—It’s About Cheating
The Atlantic
When hedge funds use bots to buy and sell stocks within milliseconds, they’re not improving the market. They’re rigging the market.
shared by @MichaelKitces, @NickMalkoutzis, @spignal, @brianmlucey
 
Most Expensive Place to Find Out Who You Are
Wall Street Journal
The year has gotten off to a tumultuous start for U.S. stock investors. But that didn’t make stocks cheap. What should you do? Use the recent volatility to make an honest reassessment of what kind of investor you are and how much risk you can stomach.
shared by Abnormal Returns, @ReformedBroker, @LaurenYoung, @derekhernquist
 
Which Internet Stock Is the Most Overvalued?
New Yorker
This week, Twitter, LinkedIn, and Pandora all fell sharply after issuing earnings reports that disappointed Wall Street.
shared by @TheStalwart, @ReformedBroker, @TimHarford, Reformed Broker
 
That “Distressed Baby” Who Tim Armstrong Blamed for AOL Benefit Cuts? She’s My Daughter.
Slate
AOL chief Tim Armstrong blames Obamacare, ‘distressed babies’ for paring retirement benefits, backtracks after media firestorm.
shared by @danprimack, @BCAppelbaum, Naked Capitalism, @nichcarlson
 

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