Posts from Friday Jul 26 2013



Post-scarcity economics in the LA Review of Books.

– Justin Fox on SAC and the strange focus on insider trading.

– A new Scott Sumner paper on NGDP level targetingRead more

LTRO payback, Eonia tightening edition

So, remember how the paying back of ECB LTRO loans was signalled as awfully good news for everyone?

Also, how it was seen as unlikely that Eonia would detach too much from policy rates or cause inadvertent Eurozone rate bifurcation as a result (which some in the market were sceptical of)? Read more

Alphachat: MF Global nostalgia edition

This time, Izzy and David chat with repo specialist Scott Skyrm about the fall of MF Global, those slippy seg funds and Jon Corzine’s attempt to build a mini-Goldman. Read more

Markets Live: Friday, 26th July, 2013

Live markets commentary from 

No, the Comex is not going to default

There’s a stupid rumour going around in the gold community that the Comex is “bleeding” inventory (especially from the JP Morgan vault) and that this will in some way compromise delivery that causes a default.

Kid Dynamite has already done the bulk of the heavy lifting in trying to debunk this story, as has Miguel Perez-Santalla at BullionVault, but we wanted to emphasise some points that go beyond the mechanics and which might be helpful. Read more

The (early) Lunch Wrap

Japan’s CPI rose the most since 2008 in June || U.S. indicts hackers in biggest cyber fraud case in history || Activision CEO leads $8.2bn buyout || Halliburton to plead guilty over Gulf spill || Cutifani unveils shake-up at Anglo American || Samsung Electronics said smartphone would slow in Q3 || FHFA reaches $885m UBS settlement; more banks in regulators’ sights || GSK replaces China operations head || Greece clears last bailout hurdle || Activision to buy back most of Vivendi’s controlling stake || CFTC mulled metals warehousing investigation for two years || Fabrice Tourre said he “deeply” regretted a tasteless email || Markets Read more

Further reading

Elsewhere on Friday,

– A very old-fashioned economic crisis.

– Negative feedback loops at the Fed?

– The first perfect mirror. Read more

The 6am Cut London

Asian stocks fell and the Nikkei and Topix both slumped more than 2% as the yen strengthened and earnings from Advantest and Nissan Motor were mixed. (FastFT)(Bloomberg)

Today: US consumer sentiment. Read more