Linkfest: Moderation in volatility boosts risk-taking; Underground economy lifts Italy GDP; ETF liquidity mismatch
Categories: Linkfest
Today’s most shared:
- Moderation in volatility inspires greater risk-taking, which will eventually boost volatility.
- Italy to add black market economy to GDP, including illegal drugs and prostitution. Perhaps if they had added it while ‘Bunga Bunga’ Berlusconi was in charge, they wouldn’t have had to worry so much about debt/GDP ratios.
- Congressional hearings hear that it is ‘almost inconceivable’ an asset manager or insurance company could create systemic risk. LTCM or AIG, anyone? I do not think that word means what they think it means.
- ETF liquidity not guaranteed as market-makers may step back in a crisis. Perhaps the discount to NAV of a small-cap ETF like the Russell 2000 might even widen in a major market correction. Liquidity mismatch, anyone?
- Geithner meets Jon Stewart, and why he drives liberals nuts.
- Bull market aids baby boomer retirements, for now.
- Herbalife blogger and tweeter who bedeviled shorts unmasked.
- Amazon raise stakes in battle against Hachette.
Have a great Memorial Day holiday!
When moderation is no virtue
The Economist
The most notable thing in the financial markets today is the absence of anything notable: volatility has collapsed to near-historic lows.
shared by @LaurenLaCapra, @eisingerj, @howardlindzon, @ReformedBroker
The Economist
The most notable thing in the financial markets today is the absence of anything notable: volatility has collapsed to near-historic lows.
shared by @LaurenLaCapra, @eisingerj, @howardlindzon, @ReformedBroker
Financial Crisis, Over and Already Forgotten
New York Times
Amnesia seemed to be in force as the House Financial Services Committee met this week for a hearing on “the dangers” of financial regulation.
shared by @AmyResnick, Naked Capitalism, @cate_long
New York Times
Amnesia seemed to be in force as the House Financial Services Committee met this week for a hearing on “the dangers” of financial regulation.
shared by @AmyResnick, Naked Capitalism, @cate_long
Bundled debt demand reaching levels of height of crisis
Financial Times
Sales of bundled US corporate debt known as collateralised loan obligations are on course to surpass levels reached at the height of the credit bubble, as the relentless search for yield leads investors to abandon caution.
shared by @edwardnh, Naked Capitalism, @FGoria, @nasiripour
Financial Times
Sales of bundled US corporate debt known as collateralised loan obligations are on course to surpass levels reached at the height of the credit bubble, as the relentless search for yield leads investors to abandon caution.
shared by @edwardnh, Naked Capitalism, @FGoria, @nasiripour
Cocaine Sales to Boost Italian GDP in Boon for Budget
Bloomberg
Italy will include prostitution and illegal drug sales in the gross domestic product calculation this year, a boost for its chronically stagnant economy and Prime Minister Matteo Renzi’s effort to meet deficit targets.
shared by @fiatcurrency, Naked Capitalism, @BarbarianCap, @ReformedBroker
Bloomberg
Italy will include prostitution and illegal drug sales in the gross domestic product calculation this year, a boost for its chronically stagnant economy and Prime Minister Matteo Renzi’s effort to meet deficit targets.
shared by @fiatcurrency, Naked Capitalism, @BarbarianCap, @ReformedBroker
A Hedge Fund Highflier Comes Back to Earth
New York Times
Crispin Odey, whose hedge fund’s fortunes have risen and fallen in recent years, drew attention with extravagant plans for a chicken coop.
shared by @TonyTassell, @JacobWolinsky, Reformed Broker, @EpicureanDeal, @LaurenLaCapra
New York Times
Crispin Odey, whose hedge fund’s fortunes have risen and fallen in recent years, drew attention with extravagant plans for a chicken coop.
shared by @TonyTassell, @JacobWolinsky, Reformed Broker, @EpicureanDeal, @LaurenLaCapra
Checking out of the ETF hotel could be costly
Financial Times
Worry is that market-making dance may come to abrupt halt.
shared by @retheauditors, @JoeSaluzzi
Financial Times
Worry is that market-making dance may come to abrupt halt.
shared by @retheauditors, @JoeSaluzzi
Wealthfront’s Nash On Being The Next Schwab
etf.com
CEO of leading automated advisor says millennials get the firm’s approach to passive investing.
shared by @abnormalreturns, @pkedrosky, @MichaelKitces, Reformed Broker
etf.com
CEO of leading automated advisor says millennials get the firm’s approach to passive investing.
shared by @abnormalreturns, @pkedrosky, @MichaelKitces, Reformed Broker
Why Is Econ 101 So Bad?
Bloomberg View
There has to be a better way to teach college students Economics 101.
shared by @derekhernquist, reddit/Economics, @Noahpinion, @JustinWolfers
Bloomberg View
There has to be a better way to teach college students Economics 101.
shared by @derekhernquist, reddit/Economics, @Noahpinion, @JustinWolfers
Daily Show: Timothy Geithner Extended Interview
cc.com
Former Secretary of Treasury Timothy Geithner discusses his book "Stress Test," and suggests that the bailout was necessary to avoid a depression.
shared by NYT Dealbook, reddit/Economics, @moorehn, @mccarthyryanj
cc.com
Former Secretary of Treasury Timothy Geithner discusses his book "Stress Test," and suggests that the bailout was necessary to avoid a depression.
shared by NYT Dealbook, reddit/Economics, @moorehn, @mccarthyryanj
Why Geithner drives liberals nuts
Politico
Tim Geithner drives liberals nuts. Invoke his name before certain groups, and eyes will quickly begin to roll. Dismissive comments soon follow: He’s the guy who bailed out Wall Street “arsonists” with no strings attached but wouldn’t do much to help struggling homeowners or punish the greedy bankers who crashed the economy.
shared by NYT Dealbook, @JoshRosner, @nasiripour, @eisingerj
Politico
Tim Geithner drives liberals nuts. Invoke his name before certain groups, and eyes will quickly begin to roll. Dismissive comments soon follow: He’s the guy who bailed out Wall Street “arsonists” with no strings attached but wouldn’t do much to help struggling homeowners or punish the greedy bankers who crashed the economy.
shared by NYT Dealbook, @JoshRosner, @nasiripour, @eisingerj
Faithful Student Borrowers Tormented With Threats, Tears After Co-Signers Die
Huffington Post
Seven borrowers who had been paying their Sallie Mae student loans on time for years were unexpectedly threatened with asset seizures after a Sallie Mae contractor demanded they immediately repay tens of thousands of dollars simply because a family member who cosigned their loans had died.
shared by @MissTrade, @nasiripour, @M_C_Klein
Huffington Post
Seven borrowers who had been paying their Sallie Mae student loans on time for years were unexpectedly threatened with asset seizures after a Sallie Mae contractor demanded they immediately repay tens of thousands of dollars simply because a family member who cosigned their loans had died.
shared by @MissTrade, @nasiripour, @M_C_Klein
Boomers Cash In as Bull Market Aids Exodus From Workforce
Bloomberg
Dee Dix hesitated before she decided to retire in 2012.
shared by @AlephBlog, reddit/Economics, @HamzeiAnalytics, @SconsetCapital
Bloomberg
Dee Dix hesitated before she decided to retire in 2012.
shared by @AlephBlog, reddit/Economics, @HamzeiAnalytics, @SconsetCapital
Anonymous, influential Herbalife blogger unmasked
NY Post
As it turns out, the anonymous blogger is neither an insider nor a finance pro but Jeffrey Gardner, 37, a cancer researcher at New York City’s Memorial Sloan-Kettering, an investigation by The Post and research by Pershing Square, shared with The Post, has shown.
shared by @firstadopter, @JacobWolinsky, @herbgreenberg, @BarbarianCap
NY Post
As it turns out, the anonymous blogger is neither an insider nor a finance pro but Jeffrey Gardner, 37, a cancer researcher at New York City’s Memorial Sloan-Kettering, an investigation by The Post and research by Pershing Square, shared with The Post, has shown.
shared by @firstadopter, @JacobWolinsky, @herbgreenberg, @BarbarianCap
Amazon Escalates Its Battle Against Hachette
New York Times
Just weeks after the retailing giant began pressuring the publisher on pricing by delaying shipping and cutting discounts, it is now refusing orders for coming books.
shared by @delong, @matt_levine, @lizzieohreally, @Techmeme, Huffington Post
New York Times
Just weeks after the retailing giant began pressuring the publisher on pricing by delaying shipping and cutting discounts, it is now refusing orders for coming books.
shared by @delong, @matt_levine, @lizzieohreally, @Techmeme, Huffington Post
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