The one Tory staffer who stood his ground against PMO on secret Duffy plan (Maclean’s): it makes you wonder, apart from the odd solitary sole, just who has ethics anymore?
Ilargi- Deflation, A Stock Market Crash And Then Christmas (naked Capitalism)
Quantitative easing, not as we know it (Economist) – this is likely to be a much discussed area over the coming days.
Becoming Japan (ECRI) – I think this is worthy of keeping a very close eye out for, especially with very weak Q3 Eurozone growth.
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.
VXST, VIX, VXV, and the rest of the curve (Condor Options)
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)
November Fund OBSERVER 2013 (Canadian Fundwatch)
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.
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.
Letter from a Professional Part 2: What are professional ethics? (Scenes From the Battleground)
iPhone-Controlled Cyborg Cockroaches Are Stirring Up An Ethics Debate (Business Insider)
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:
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.”
A neat FT series (August 2013) on China’s debt problem
Picking Winners? Investment Consultants’ Recommendations of Fund Managers (Hat tip Ken Kivenko via Blog.TheDerivativeProject.com)
“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.”
BIS veteran says global credit excess worse than pre-Lehman (Ambrose Evans-Pritchard, Telegraph UK)
Oxfam warns on European poverty and says ‘Greece is in a terrible state’ – despite improvement in certain data the overall context of the data remains weak. Retail sales for the Eu17 remain, based on latest data, at 2004 levels, and industrial production, again based on latest data, saw declines that effectively erased all of the year to date improvement in Euro Zone output.
US income inequality at record high (BBC News) – imagine a body where the legs are getting weaker and the thumbs stronger….How quick can it run?
Triple shocks threaten Europe’s sickly and deformed recovery – always worthwhile to look at a bigger picture. (Telegraph)
Santelli Rants On The Looming Auto Subprime-Loan Crisis – yes, I think I have commented on auto loans some 2 to 3 times in the last 6 months. (Zero Hedge).
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…
Fukushima’s Radioactive Water Leak: What You Should Know (National Geographic)
The Problem with 401(k) Plans (Baseline Scenario)
The Lame “Uncertainty” Defense (ditto)
Toxic Trait To Avoid #1 (ditto)
Why conventional theories on the crisis are inadequate..Justin Lin’s view (Mostly Economics)
Is the Fourth Amendment Now Illegal- (Marginal Revolution)