My afternoon reading:

• Hedge or Bet? Parsing a Trade (WSJ)
• Q&A on Facebook’s IPO: What does it mean for you? (Washington Post)
• Is Dimon’s ‘Stupid’ Defense a Smart Move? (Yahoo Finance) see also Polishing the Dimon Principle (WSJ)
• Accidentally Released – and Incredibly Embarrassing – Documents Show How Goldman et al Engaged in ‘Naked Short Selling’ (Rolling Stone)
• Assessing the Representativeness of Public Opinion Surveys (People Press)
• Ronald Reagan on Marriage:  Love, Dad (Letters Of Note)
Let The Honeymoon Begin: Romney’s Poll Numbers Perk Up (TPM)
• The hard part of solution journalism is agreeing on the problems (Jonathan Stray)
• Is Death Bad for You? (The Chronicle)
• Five Lessons From Music’s Most Feared Manager, Led Zeppelin’s Peter Grant (Businessweek)

What are you reading?


Bank Investors Bail on Too-Big-to-Fail

Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “10 Mid-Week PM Reads”

  1. tradeking13 says:


  2. Jojo says:

    Why corporations need to be regulated:
    Commentary | Immigration
    A bold step forward: Assessing the State Department’s new J-1 Summer Work Travel regulations

    By Daniel Costa and Ross Eisenbrey | May 16, 2012

    On Friday, May 4, the State Department’s Bureau of Educational and Cultural Affairs released a new set of rules for the Summer Work Travel program, a part of the J-1 visa Exchange Visitor Program originally designed to facilitate cultural exchange between Americans and citizens of other countries. Despite the original intent of the program, EPI has documented and explained how the Summer Work Travel (SWT) program has over the past few decades morphed into the country’s largest guest worker program and lacks adequate regulation and oversight by the State Department or any other governmental body.

    Partly in response to inadequacies in the program described by EPI and the abuses revealed by hundreds of J-1 workers who went on strike in August at a Hershey’s chocolate packing plant in Palmyra, Pennsylvania, the State Department undertook a comprehensive review of the SWT program. The May 2012 regulations are the first installment of SWT reforms planned by the State Department; another set of rules will be issued before the end of the year.

  3. mathman says:

    Obama making another “smart” move (snark):

  4. peterru says:

    Interesting interview with Janet Tavakoli in Research (May 2012)

  5. formerlawyer says:

    Interesting article, in Wired, using a second language tricks your mind so as to avoid human biases.

  6. [...] Barry Rithholtz, an article from Matt Taibbi, Rolling Stone: It doesn’t happen often, but sometimes God smiles on [...]

  7. CharlesII says:

    So Matt Taibbi reveals that it is entirely possible for short sellers to screw a company.

    Our benevolent host cursed me and said, ridiculously, that I had probably never traded a stock for telling him the same thing about a very real company that I saw attacked by shorts, long ago. Well, ok. I guess it’s alright in the Empire of Abaddon to be scornful to people who just tell you the truth. The company I told our host about was a whole lot more real than Overstock. It wasn’t destroyed by shorts, but they certainly wasted management’s attention. I wonder how much better small companies would do if they weren’t faced with the dread that a Goldman can sell 107% of their stock without owning a single share. And, yes, of course shorts perform a valuable function. Just not if they can play with counterfeit stock, while real companies have to produce real products on real timelines with real resource limitations.


    BR: My beef was with the liars at using naked short selling as an excuse for their own miserable company (not stock) performance, as well as the eejit claim naked shorts caused the 2007-09 crash.

  8. VennData says:

    Whites Account for Under Half of Births in U.S.

    The GOP maybe a half dozen or so more election cycles to pedal their irrational, unscientific nonsense before this demographic reality hits them square in their Supply-Side-tax-cuts-increase-revenue faces. When Obama wins one more, and Hillary two, the pathetic history of angry white males will become a mocked minority, forever.

  9. Dima says:

    Although I shouldn’t be by this point, sometimes I am still floored/shocked by the depth of the greed and sociopathic nature of the financial industry. Taibbi is doing a great public service by consistently banging the drum on the corruption of the financial industry. But as always, we will have to proceed to the bitter end ala the French in 1789, the Russians in 1919, the Chinese in 1949, etc. It seems the top cannot stop themselves from destroying the very thing from which their wealth flows – and the result is almost always the same.

  10. streeteye says:

    I rage at the notion that it was a hedge. If you want to hedge, you sell the closest risk you can find in the cheapest, most plain-vanilla fashion. Traders don’t get paid $20m a year to hedge. Hedges don’t need 2nd and third-order hedges of the hedges (which seem to be similar in size as the original hedge and therefore negating it). Hedges don’t blow up. Basically, it was a relative value play, a reach for what was hoped would be negatively correlated, leveraged yield.