Linkfest: Summer correction? Fed offers QE exit roadmap; Inside Goldman’s “Big Short”

Categories: Linkfest

Today’s most shared:

  • Credit fears trigger market drop…long-awaited correction at hand?
  • Taper turns to exit: Fed asset purchases to end in October. Fed’s Bullard says inflation will overshoot target… so is it a target or a ceiling?
  • Light shed on Goldman Sachs’s “Big Short” by arbitration of trader’s giant bonus and abortive path to partner.
  • Jury verdict suggests there’s a right and wrong way to insider trade.
  • Did benefit cuts force people back to work?
  • Volatility futures are an expensive hedge against a market drop.

Espirito Santo Creditors Doubt Containment Amid Missed Payments
Bloomberg
Central bank assurances that Portugal’s Banco Espirito Santo SA is protected after a parent company missed short-term debt payments are failing to ease creditor concern they may also suffer losses.
shared by Business Insider, reddit/Economics, Reformed Broker
 
Has the Market Correction Started?
Bloomberg View
Stock market corrections are inevitable and it looks like we’re experiencing one now.
shared by @mark_dow, @ReformedBroker, @FGoria, @TimOBrien, Reformed Broker
 
Market Stats, Fun Facts, and Why You Can Ignore Them
athrasher.com
Are stock market stats fun? Yes. Will I be basing my market bias on them? No.
shared by @abnormalreturns, @ReformedBroker, Reformed Broker
 
Fed Stimulus Is Really Going to End and Nobody Cares
Wall Street Journal
Federal Reserve officials on Wednesday telegraphed an endpoint to the central bank’s bond-buying program. Wall Street barely blinked.
shared by @ritholtz, @Noahpinion, @wonkmonk_
 
Fed mulls policy exit, eyes end of asset purchases
Reuters
The Federal Reserve has begun detailing how it plans to ease the U.S. economy out of an era of loose monetary policy, indicating it will end its asset purchases in October.
shared by @DougKass, reddit/Economics, @HamzeiAnalytics
 
Jeremy Stein: The exclusive exit interview
Washington Post
The Harvard economist and former Fed governor discusses bubbles, exit strategy and the taper tantrum.
shared by @BCAppelbaum, reddit/Economics, @Neil_Irwin
 
Fed’s Bullard Says Unemployment Drop to Push Inflation
Bloomberg
Federal Reserve Bank of St. Louis President James Bullard said a rapid drop in joblessness will fuel inflation, bolstering his case for an interest-rate increase early next year.
shared by @DougKass, Business Insider, @Noahpinion, @IvanTheK
 
’Big Short’ Case Raises Questions About Finra Arbitration
New York Times
The case of Deeb Salem, a former Goldman Sachs trader, highlights an arbitration system that is weighted toward the big Wall Street firms, William D. Cohan writes in the Street Scene column.
shared by @JohnLothian, @ErikSchatzker, Reformed Broker, @EpicureanDeal
 
Rengan Rajaratnam Case Shows Right Way to Insider Trade
Bloomberg View
Roughly speaking, there are two ways to get accused of insider trading. One is the old-fashioned, stupid way.
shared by @JohnLothian, @TimOBrien, @EpicureanDeal
 
Flows From Unemployment to Employment & Extended Unemployment Insurance
angrybearblog.com
We can’t yet determine the effect of briefer unemployment insurance on flows from unemployment to employment.
shared by @delong, @MarkThoma, @Noahpinion
 
Student Debt
Bloomberg
Student debt: No other country imposes the kind of costs on higher ed students that the U.S. does, and nowhere else do loans cover so much of those costs.
shared by @MichaelKitces, @cate_long, @TimOBrien, @mccarthyryanj
 
Buying the Last Cheap Asset Class Is a Dangerous Game
Bloomberg
In a market where everything from U.S. equities to real estate investment trusts to junk bonds looks pricey, there may be one last remaining cheap asset class: volatility.
shared by @EddyElfenbein, @MichaelKitces, @ChrisAdamsMKTS
 
Argentines Taunt Singer as Soccer Chants Turn to Bonds
Bloomberg
In the aftermath of Argentina’s semifinal World Cup win last night, crowds broke into the usual victory chants, praising the homeland and poking fun at the British, their longtime nemesis in the Falkland Islands.
shared by NYT Dealbook, @Pawelmorski
 

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