Andrew Huszar: Confessions of a Quantitative Easer (WSJ, hat tip Zero Hedge) – more and more people are exhibiting considerable unease at the state of play.  

Financial Certifications Glossary from IIROC- a Useful Start though More is Needed (Canadian Financial DIY) – I agree with Jean, but I would also add that I am not sure that this all inclusive list is of much use on its own.  To a certain extent the new glossary of financial designations is as about as useful as signs pointing to nowhere in the desert sand.  I wonder how much it cost to get it this far?


Worst Mutual Fund Ad of the Year? (Canadian Couch Potato)

You have to ask yourself do you not, how come they (Canadian mutual fund companies) do not rail against the use of inappropriate benchmarks to tell a better story yet run the ramparts when attempts are made to introduce appropriate benchmarks at the point of sale.  How come they can pick and choose and where again are our regulators?  Looking the other way and well paid for their glance.  Is this unethical!  Yes, on both accounts.

A Textbook Pre-Crash Bubble (Hussman Weekly Commentary)

An interesting chart at the end and discussion of the dynamics of bubbles (Sornette).  There has been an increasingly large amount of bubble talk recently and I do find it disconcerting to see the palpable disconnect between slow economic growth dynamics on the one hand and the rise of the market on the other.


TD Models Advisor Pay Plan – the real reason it does not want to get rid of embedded commissions and introduce best interest standards….

“We now have aligned ‘pay for performance’ to strategy,” states the compensation document. “We want your practice, on average, over time, to grow faster and be more productive and profitable than our competition.”

Finance and the Death of Trust (Institute for New Economic Thinking)

Charles Ellis, CFA, on the Investment Profession: “We Can Do Better” (CFA Institute)

November Fund OBSERVER 2013 (Canadian Fundwatch)

Frequently Asked Question- What is a code of ethics and how does a corporation or organization develop one? (EthicScan)

Eugene Fama and Efficient Financial Market Theory (WSJ)

Money-go-round theme du jour, bonds beat cash  & Draghi on the edge of deflation (FT’s Alphaville)

Citi’s Economic Surprise Index Has Been Falling All Month And Is On The Verge Of Going Negative (Business Economics, hat tip Abnormal Returns)

The Value Returns to Value Investing (Institutional Investors, hat tip Abnormal returns) –  high to low P/B spreads also appeared most elevated at market peaks, which is no real comfort.

JP Morgan sees ‘most extreme excess’ of global liquidity ever (Telegraph)

 Permalink to Will the Fed push EM over the edge- & Permalink to Equity multiple expansion to the rescue. A benefit to high yield - (Bond Vigilantes – M&G)


China’s impossible contradiction (Telegraph) – an important post by Ambrose here.   The last thing we need is a more heavily indebted Chinese Juggernaut going backwards in time.   The levels of debt that China has accumulated and the heavy dependence on investment and export led growth requires a broadening of demand, in particular consumption, upon which capitalism, at its current core, depends.   


Hidden debt must still be repaid (Michael Pettis)

BlackRock: Creating a Better Mutual Fund? (Steadyhand)

Also, we must not forget a couple of “ongoings” thanks to Naked Capitalism:

Bill Black- The New York Times Publishes the Most Ironic Sentence of the Crisis (Naked Capitalism)

OCC Replies to Elizabeth Warren Reveal Extent of Regulatory Capture on Derivatives (Naked Capitalism)

How Banks Profit From Distress (British Edition) (Again..ditto.. Naked Capitalism)


Economics students aim to tear up free-market syllabus (Guardian UK)

“In the decade before the 2008 crash, many economists dismissed warnings that property and stock markets were overvalued. They argued that markets were correctly pricing shares, property and exotic derivatives in line with economic models of behaviour. It was only when the US sub-prime mortgage market unravelled that banks realised a collective failure to spot the bubble had wrecked their finances.

In his 2010 documentary Inside Job, Charles Ferguson highlighted how US academics had produced hundreds of reports in support of the types of high-risk trading and debt-fuelled consumption that triggered the crash.”


Picking Winners? Investment Consultants’ Recommendations of Fund Managers (Hat tip Ken Kivenko via

“The third possible reason why plan sponsors follow investment consultants’ manager recommendations is that they are simply unaware how accurate or inaccurate they are. While consultants insist on full transparency in the performance of the fund managers they rate, they do not disclose their past recommendations to allow analysis of their own performance.”


The Global QE Exit Crisis – a very good explanation of the impact of QE tapering on deficit challenged developing economies..

Excerpt – “Central bankers have done everything in their power to finesse these problems. Under the leadership of Ben Bernanke and his predecessor, Alan Greenspan, the Fed condoned asset and credit bubbles, treating them as new sources of economic growth. Bernanke has gone even further, arguing that the growth windfall from QE would be more than sufficient to compensate for any destabilizing hot-money flows in and out of emerging economies. Yet the absence of any such growth windfall in a still-sluggish US economy has unmasked QE as little more than a yield-seeking liquidity foil.”

And more from Stephen in a recent CNBC slot

Bond Binge Expanding Leverage Toward Crisis Peak: Credit Markets ( hat tip The Prudent Bear)