Linkfest: Inflation debate; Why Barclays lied about dark pool; Is US abusing dollar’s pre-eminence to advance its interests?

Categories: Linkfest

Today’s most shared:

  • Great debate rages on inflation risks.
  • Why Barclays lied: Network effects bring more institutions to the most liquid dark pools, bringing in even more liquidity and feeding a virtuous cycle. Lack of transparency and competition to provide the most liquid pool lead management to stretch the truth and be disinclined to kick out liquidity-providing HFTs who also happen to seek an information edge.
  • As US uses dollar hegemony to advance its interests, banks exit money transfer business to avoid risk of money laundering accusations, hurting immigrant workers. After BNP fine, France says global payments should move away from dollars.
  • Repo market shows signs of strain as ‘specials’, fails on the rise.
  • Bank regulators look at risk-weighting ‘floors’ to prevent counting all sovereigns as riskless, not to mention AAA CDO-squareds.
  • Unicorn hunting on AngelList. Crunch all the numbers you want, spotting the next big thing before the crowd is the only thing that matters.

As food prices rise, Fed keeps a watchful eye.
Wall Street Journal
U.S. food prices are on the rise, raising a sensitive question: When the cost of a hamburger patty soars, does it count as inflation?
shared by @firstadopter, Reformed Broker, @prchovanec, Calculated Risk, @markgongloff
8 reasons to ignore the latest round of inflation hysteria
It’s true that wages might rise soon, but that would be a good thing.
shared by @TheStalwart, @Noahpinion, @ObsoleteDogma
Slump Stories and the Inflation Test
New York Times
Why you shouldn’t take anti-Keynesians seriously.
shared by @MarkThoma, Marginal Revolution, @ModeledBehavior, @D_Blanchflower
Barclays Suit Sheds Light on Trading in Shadows
New York Times
Barclays’ dark pool seems to have catered to high-frequency traders, the very participants it claimed to protect against, a lawsuit contends.
shared by Abnormal Returns, @JoeSaluzzi, @ThemisSal, @SconsetCapital

Immigrants From Latin America and Africa Squeezed as Banks Curtail International Money Transfers
New York Times
Under regulatory pressure, many banks are ending or limiting money transfers, most likely meaning higher costs for immigrants sending money home.
shared by @MParekh, @HamzeiAnalytics, @nancefinance, @lucymarcus

France hits out at dollar dominance in international transactions
Financial Times
France’s political and business establishment has hit out against the hegemony of the dollar in international transactions after US authorities fined BNP Paribas $9bn for helping countries avoid sanctions.
shared by @SaraEisen, @HamzeiAnalytics, @mhewson_CMC, @FGoria
Bond Anxiety Grows in $1.6 Trillion Repo Market as Failures Soar
In the relative calm that is the market for U.S. Treasuries, a sense of unease over a vital cog in the financial system’s plumbing is beginning to rise.
shared by @BarbarianCap, @HamzeiAnalytics, @mccarthyryanj
Banks face added capital requirements
Wall Street Journal
Global regulators are considering new measures that would make it harder for banks to understate the riskiness of their assets. The changes could force banks to raise billions of dollars in extra capital.
shared by @kmac, @Convertbond, @Alea_, @petereavis, @creditplumber
U.S. Seen as Biggest Oil Producer After Overtaking Saudi Arabia
The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.
shared by @izakaminska, @prchovanec, @ThemisSal, @Convertbond
Betting on the Ponies: non-Unicorn Investing
You can always tell the people who know what they’re doing: they’re the ones that don’t tell you about their system.
shared by Abnormal Returns, @AmyResnick, @derekhernquist, @Techmeme, @howardlindzon follows the best ‘curators’ on the web and social media, and finds all the top financial news right now, as voted by you.

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