The Wall Street Journal – Rising Markets Batter Short Sellers Short sellers are facing their worst losses in at least a decade, a Wall Street Journal analysis has found, as many of the rising stocks they bet against have only continued to soar. That has stung several high-profile hedge-fund managers, including William Ackman and David… Continue reading Short Sellers Are Feeling The Pinch
Alphaville – Chart du jour, Bernanke’s record on inflation edition The gap between full employment and economic reality has been staggeringly big throughout most of his tenure. Higher broad-based inflation throughout this time would have been extremely helpful — further eroding the household debt overhang; stemming fears of a deflationary episode before they became pervasive;… Continue reading Inflation During The Bernanke Era
The Financial Times – Intern death leads to calls for shake-up of City bank culture Bankers said working hours for interns were tough and often stretched beyond midnight but that it would be unusual for an intern to do two or even three all-nighters. “Analysts and associates have to work like dogs. But interns would… Continue reading Is A Change In Bank Culture Needed?
The Wall Street Journal – Justice Department Plans New Crisis-Related Cases While he has been criticized for overstating past efforts, Mr. Holder said his marching orders to prosecutors around the country have been clear and forceful: “Remain aggressive and pursue these kinds of cases.” Mr. Holder and the Obama administration have faced rising criticism, particularly… Continue reading Justice Department Close To Filing Charges For Credit Crisis
FT Alphaville – That spike in US treasury yields It’s seriously pronounced. While in absolute terms the US 10 year benchmark is simply back at summer 2011 levels, the pace of deterioration since the beginning of May has not been seen in recent decades. Over the past week alone, yields have leaped 30 basis points.… Continue reading Quantifying The Bond Market Selloff
Cinema Rasik’s Macro Viewpoints – Interesting Videoclips of the Week (August 10 – August 16, 2013) U.S. Stock Market This was a week when every body we heard was cautious at least in the near term. Action in the market, the seasonality, the weakness from Macy’s, Walmart & Cisco, and the Fed uncertainty all seemed… Continue reading How The Federal Reserve Changed The Approach To Forecasting The Stock Market
Comment Yesterday Bloomberg TV interviewed BlackRock’s fixed income CIO Rick Rieder. On bond fund volatility: Yes, it’s bad. It’s amazing. As I go around the country and people talk about the safety in bonds. Bonds are different, the volatility. Nobody really understands the volatility in the fixed income market could actually be higher than the… Continue reading Assessing Rising Yields
The Wall Street Journal – Central Banks Risk Clash of Titans In the U.K., Government Bonds Could Be a Bad Bet for Investors Are central banks losing control of global bond markets? For much of the time since 2008, bonds have danced to the tune played by the Federal Reserve, European Central Bank and Bank… Continue reading Are Central Banks Losing Control?
FOX Business – Watchdog: Fannie, Freddie Mask Billions in Losses Fannie Mae and Freddie Mac are masking billions of dollars losses because of the level of delinquent home loans they carry, a federal watchdog said in an internal report, and it said the companies should be required immediately to recognize the costs of some bad… Continue reading Are Fannie/Freddie Really Money-Making Machines?
<Click on chart for larger image> The Wall Street Journal – Fear of Fed Retreat Roils India Economic Weakness in Developing Nations Is Laid Bare as Easy Money Dries Up The U.S. Federal Reserve’s plan to reduce monthly bond purchases is exposing the deep-seated fragility of India’s economy, unnerving investors and underscoring the risks to… Continue reading Spreading Asian Financial Crisis Thanks To Tapering?
The Wall Street Journal – J.P. Morgan Faces New Probe on Energy Trades Justice Department Investigation Is Latest Legal Hurdle for Bank The Justice Department is investigating whether J.P. Morgan Chase & Co. manipulated U.S. energy markets, according to people familiar with the case, marking the latest legal hurdle for a bank already facing a… Continue reading JP Morgan At It Again