Previously on
MoreLiver’s:
There's
going to be such a brutal bond investor slaughter at some point over the next
decade that the streets of Boston's mutual fund district will run red
with blood, the skies will be shot through with the lightning and thunder of
unexpected capital losses and those who manage to survive will envy the dead.
Traders stay short the yen even in the face of
risk assets volatility – Sober
Look
Is high-frequency trading a threat to stock
trading, or a boon?
– WP
The
opposing viewpoints of these two veteran executives hint at the dilemma facing
regulators as they try to determine whether to rein in high-frequency trading,
which now accounts for at least half of all trading activity on U.S. exchanges.
Seasonally Affective Investing Disorder – The
Psy-Fi Blog
It
shouldn’t therefore be particularly surprising that we’re unconsciously
affected by environmental conditions: there was a time, not so long ago, when
nothing else mattered. Now, cosseted by
central heating and air conditioning, we’re remote from our material world but,
it turns out, for investors our material world is not remote from us.
Intraday Share Price
Volatility and Leveraged ETF Rebalancing – SSRN
Over the last few years, market watchers and
regulators have been concerned about leveraged ETFs' role in driving up
end-of-day volatility through their daily rebalancing activities…Given the
predictable patterns of leveraged ETF rebalancing demands, we also explore the
implications for strategic trading and for leveraged ETF tracking errors during
periods of large market swings.
Why illiquidity in one asset can spread quickly
to others – The
Economist
The flash
crash of May 6th 2010 titillated financial academics and
lovers of mystery alike.
Have superstar traders lost their magic? – The
Guardian
Hedge fund
maestro Greg Coffey is retiring at 41 after a glittering career. And, after a
distinctly lacklustre performance recently, many of his contemporaries are
following suit
ECONOMICS
“Misunderstanding Financial Crises”, a Q&A
with Gary Gorton – alphaville
/ FT
The
financial crisis started the way all systemic financial crises start: as a bank
run. The only difference was that this bank run took place in the shadow
banking system, and the creditors who started the run weren’t depositors of
retail banks, but the counterparties of investment banks in repo and commercial
paper markets.
A supposedly fun thing we shouldn't have done – Free
exchange / The Economist
The most
recent World Economic Outlook contained the punchline: fiscal multipliers since
2009 seem to have been sigificantly larger than previously assumed.
Fiscal Devaluations – BIS (pdf)
Boston Fed
Working papers by Emmanuel Farhi, Gita Gopinath, and Oleg Itskhoki
Video: Krugman and Stiglitz – Economist’s
View
Monetary policy developments – BIS (pdf)
Mervyn
King, Governor of the Bank of England, to the South Wales Chamber of Commerce, Cardiff, 23
October 2012.
Thomas Edison’s Quixotic Plan for a New
Monetary Policy – View
/ BB
During the
sharp recession of 1921- 1922, Thomas Edison turned from making innovative
consumer products to reinventing the U.S. monetary system.
Gary Johnson and the dangers of ‘common-sense’
economic policy – Wonkblog
/ WP
Almost all
of the worst economic ideas out there are sold on the basis that they’re just
“common sense.” Some of them, in fact, are just common sense. That’s what makes
them so dangerous. Life would be a lot easier if bad ideas never appealed to
anybody, but that’s not how it works.
(audio) The
Gulf and the Global Economy: the state of the world – LSE
As US and European economies teeter on the verge of
ever-greater slowdown, what prospects remain for growth elsewhere in the world?
ECONOMICS: OIL
Oil and the World Economy: Some Possible
Futures – IMF
IMF study: Peak oil could do serious damage to
the global economy
– Wonkblog
/ WP
OTHER
Book Bits – The
Capital Spectator