Linkfest: Is there a bubble in everything? Fears of a bond fund run; US turns to German banks for cashectomy;

Categories: Linkfest

Today’s most shared:

  • Is everything in a bubble? Are low interest rates a sustainable ‘new normal’? What does it mean if the interest rate structure for a low-inflation economy results in asset prices that are very high by historical standards?
  • Could a rise in interest rates cause a run on bonds, as losses drive investors to cash in liquidity-constrained bond funds they use as bank accounts in a low-interest-rate economy?
  • US regulators turns to German banks, $50b in liabilities seen for European banks.
  • Strong euro not helping periphery that may still need a bailout.
  • Bill Gross’s lieutenants challenge his sway.
  • Private equity firms race to sign up investment banking junior analysts, creating headaches for investment banks.
  • Wall Street Journal turns 125, looks back at how today’s Journal would have covered events back then. High frequency trading with the telegraph; The Johnstown flood caused by Obama’s incompetence: popular outcry for hearings on the lost records; Gold standard: too easy, switch to unobtainium?

Welcome to the Everything Boom, or Maybe the Everything Bubble
New York Times
Around the world, nearly every asset class is expensive by historical standards.
shared by @pkedrosky, @SaraEisen, @prchovanec, @edwardnh, reddit/Economics
 
Knutty Asset Prices
New York Times
About those “artificially low” interest rates.
shared by @MarkThoma, @economistmeg, @Noahpinion
 
Commerzbank Said Next to Face Penalties in U.S. Probe
Bloomberg
Commerzbank AG, Germany’s second- largest lender, will probably be the next bank to resolve alleged U.S. sanctions violations, a person with knowledge of the matter said.
shared by @JacobWolinsky, @JohnLothian, Crossing Wall Street
 
European Banks Seen Facing $50 Billion More in Legal Expenses
Bloomberg
Europe’s banks face a further $50 billion of legal costs as they catch up with their U.S. counterparts, according to analysts at Morgan Stanley.
shared by @JohnLothian, Here Is The City
 
ECB under pressure to tackle ‘crazy’ euro
Financial Times
Pressure is mounting on the European Central Bank to take action against a persistently strong euro with a leading industrialist calling on Frankfurt to tackle the “crazy” strength of the currency.
shared by @EconBrothers, @mhewson_CMC, Business Insider, @YanniKouts
 
Rogoff: Europe’s Debt Wish
Project Syndicate
It is difficult to see how Europe can revive economic growth without significant debt restructuring or rescheduling. But Europe’s politicians seem utterly unable to contemplate this scenario, thus placing a huge burden on the ECB.
shared by @edwardnh, @tomkeene, @wonkmonk_
 
Pimco Dissidents Challenge Bill Gross in ‘Happy Kingdom’
Bloomberg
In the weeks leading up to Pacific Investment Management Co.’s annual forum in May that sets the firm’s long-term investment outlook, Bill Gross was facing internal dissent.
shared by @JacobWolinsky, @counterparties
 
A Billionaire Mathematician’s Life of Ferocious Curiosity
New York Times
The billionaire mathematician James H. Simons has led a life of ferocious curiosity.
shared by @jasonzweigwsj, @volatilitysmile, @derekhernquist, @Noahpinion
 
James Gorman on the future of finance: banks will get bigger.
Wall Street Journal
The Morgan Stanley CEO says banks will continue to provide essential functions. But expect most bank branches to disappear and cash to become a museum piece.
shared by @LaurenLaCapra, @ReformedBroker, @JohnLothian, @spignal, @MattGoldstein26
 
Tim Cook’s recasting of Apple is in full boom
Wall Street Journal
Steve Jobs’s successor refashions the Silicon Valley giant to widen its ambitions and make it a more collaborative partner. Can the CEO’s coming products give its mobile grand trilogy a second act?
shared by @pkedrosky, Reformed Broker, @IvanTheK, @HamzeiAnalytics, @MParekh
 
The secretive billionaire who built Silicon Valley
Fortune
How John Arrillaga Sr. transformed California fruit orchards into high-priced office space for the likes of Google, Apple, Hewlett-Packard, and Cisco.
shared by @howardlindzon, @Techmeme, @derekhernquist
 
How Birth Year Influences Political Views
New York Times
People’s political views are particularly shaped by events they experience between 14 and 24.
shared by @ryanavent, @ObsoleteDogma, @ProPublica
 
Why trading volume is tumbling, explained in 5 charts Slide Show
MarketWatch
Average daily trading volume is less than half of the peak during the financial crisis, even as the stock market hits records. These charts explain some of the reasons for the drop.
shared by @howardlindzon, @ReformedBroker, @JohnLothian, Reformed Broker, @StockTwits
 
You Go First
Epicurean Dealmaker
Because too many private equity firms are competing for too few analysts, they have begun recruiting them earlier and earlier, and they are signing them to offers before they are even halfway done with their two-year apprenticeships.
shared by Abnormal Returns, NYT Dealbook, Crossing Wall Street
 
Neuroeconomists Confirm Warren Buffett's Wisdom
caltech.edu
Investment magnate Warren Buffett has famously suggested that investors should try to "be fearful when others are greedy and be greedy only when others are fearful." That turns out to be excellent advice, according to the results of a new study.
shared by Business Insider, @JacobWolinsky, reddit/Economics
 
After Nailing "Big Short," Eisman Closing Hedge Fund
valuewalk.com
Eisman’s luck may have been fleeting as he announced recently he was shuttering his hedge fund Emrys Partners LLP, which operates
shared by @LaurenLaCapra, @ReformedBroker, @hedge_funds, @SconsetCapital
 
End to China’s property boom has barely begun
Financial Times
The Chinese property sector is in a recession. Market optimists insist it is going through an “adjustment” similar to previous property downturns. A more sober view, however, is that because of unprecedented overbuilding, and leverage nurtured by the eruption of shadow banking, this downturn is both more serious and systemic.
shared by @ObsoleteDogma, @edwardnh, @peter_tl, @ritholtz
 
Demographics and Behavior
Calculated Risk
Longer lives, aging population lead to lower labor force participation.
shared by Abnormal Returns, @MarkThoma, reddit/Economics, @calculatedrisk
 
July 8, 1889: The First WSJ – Today in WSJ History
Wall Street Journal
The name "The Wall Street Journal" was the idea of Charles Bergstresser, the "forgotten" third man who teamed with Dow and Jones to create the news company that started publishing this newspaper in 1889. Today in WSJ History, July 8, 1889.
shared by @TheStalwart, @prchovanec, @nichcarlson, @JacobWolinsky
 

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