Today’s most shared:
- Inflation fails to rear its head.
- Senate inquiry says hedge funds and HFTs dodged taxes by claiming fast trades were done within a basket structure that turned short-term trading profits into long-term gains; Renaissance alone accused of dodging $6b in taxes.
- Argentina ruling means countries and debtors who need to restructure, and would be made better off by restructuring, will be unable to restructure.
- The global financial system is increasingly about power and national interest, not rules and cooperation.
- Covenant-light junk loans are the new normal as the Fed has been unsuccessful in attempts to limit risky bank lending.
- Deficit scolds would be more credible if they weren’t the same people who think high financial sector leverage and risk is fine, even with high complexity and opacity.
- People who focus on the past tend to be too risk-averse, those who focus on the present spend too much. And those who look to the future often pick bad investments.
- Humans are hard-wired to trust stories over data.
- Americans cash balances hit new high.
- Rise of big-box retailers found to increase productivity, wages.
The debate about inflation continues.
shared by @ObsoleteDogma, reddit/Economics, @TheArmoTrader
Inflation: mismeasurement, irrational expectations, and reality.
shared by @MarkThoma, @EconBrothers, @Noahpinion, @ModeledBehavior
New York Times
Hedge funds have claimed billions of dollars in tax savings through complex financial structures created by Barclays and Deutsche Bank, a Senate inquiry has found.
shared by @ritholtz, @hedge_funds, @JohnLothian, Reformed Broker, @MattGoldstein26
Subcommittee finds “basket options” misused to dodge billions in taxes and bypass federal leverage limits.
shared by @matt_levine, @pdacosta, @tomkeene
The US court ruling forcing Argentina to pay its hold-out creditors has big implications. In the future, it will not be not enough for the debtor and 92% of creditors to reach an agreement, if holdouts and a New York judge can block it. This will make both debtors and creditors worse-off.
shared by @MarkThoma, reddit/Economics, @FGoria
The international financial system is part of international power politics.
shared by Credit Writedowns, @edwardnh, @TimHarford
New York Times
The deficit scolds are still going at it, even though the whole panic turned out to be a false alarm.
shared by @ModeledBehavior, reddit/Economics, @ritholtz, @FGoria, @rjocean, @MarkThoma
China’s total debt load has climbed to more than two and a half times the size of its economy, underscoring the difficult challenge facing Beijing as it seeks to spur growth without sowing the seeds of a financial crisis.
shared by Marginal Revolution, @mhewson_CMC, Business Insider, @FGoria
One of the Federal Reserve’s first post-crisis tests of its ability to quash excessive risk-taking using regulatory tools is so far looking like a failure.
shared by @pdacosta, @Convertbond, @Dvolatility, @eisingerj, @AmyResnick
New York Times
A survey finds financial health is higher among those who dwell on the past, compared with those who live in the moment or even plan for the future.
shared by @ritholtz, @ReformedBroker
The Psy-Fi Blog
We’re inclined to favor people who tell stories over those who crunch data.
shared by @jasonzweigwsj, @MichaelKitces, @TheIntuitInvest
The more pleased globally minded egalitarians are with emerging-market trends over the past generation, the more concerned they ought to be with national income inequality.
shared by Marginal Revolution, reddit/Economics, @Noahpinion
Average checking account balances hit a new high, a according to a new study.
shared by @davidmwessel, @hblodget, @TheArmoTrader
Big box retailers pay higher wages than mom-and-pop stores, attract better workers, and promote from within.
shared by reddit/Economics, Marginal Revolution, @Richard_Florida
Wall Street’s invitations to Federal Reserve’s Jackson Hole gathering get lost in the mail.
shared by @LaurenLaCapra, NYT Dealbook, @mhewson_CMC, Business Insider
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