Hedge funds say a busier market creates a healthier economy. But the lesson of the last two years is that this isn’t true — Bloomberg
A couple of weeks ago, I wondered whether it was possible to see what a stock graph would look like if it split up the x-axis according to volume rather than according to the time of day. After all, when trading is concentrated at the beginning and end of the day, those are the areas worth concentrating on, right?
Mike Arrington loves nothing more than throwing bombs, so you could be forgiven for dismissing his latest exercise in conspiracy-theorizing as little more than self-promotion. But you’d be wrong. It’s an important story, and it’s one which Arrington almost uniquely is able to write. Henry Blodget makes some good points:
Joe Toms of Lending Club emails me the data for this chart:
Consumer credit has been the one area that has dropped the least. Said in a nice way, this points to the structural inefficiency. A more blunt assessment is that banks have been taking advantage of consumers.
It seems that David Warsh nailed it, back in May: Larry Summers is going to quit his White House position in November, according to Hans Nichols. He’ll probably go back to what he was doing before: a day a week for a hedge fund, a position as University Professor at Harvard, maybe even return to writing his column for the FT. And who will replace him?
I’ve been pondering the disconnect between stock and bond prices of late. It reminds me a bit of late 2007, only the other way around: back then there was a credit crunch, but the stock market continued to hit new highs. Today, stocks are largely sitting out the bond bubble.
Yves Smith has been doing a fabulous job covering the latest fiasco at Ally Financial, the state-owned bank which used to be called GMAC. But to get a quick idea of how dysfunctional the situation is, all you need to do first is read the official GMAC memo to its agents in 23 states around the country, and then read the official GMAC press release on the subject.