Dolphin Stampede Off Dana Point, Calif. (VIDEO) Huffington Post
Even brief interruptions spawn errors EureakAlert (Chuck L)
China and Japan step up race for airborne drones Guardian. Ugh.
Someone in comments had the bad taste to complain about Ian Fraser’s posts, which we sometimes run here. Probably a UK banker, given that none other than the BBC’s Robert Peston is singing his praises. And here is why: Charges brought in HBOS corruption case BBC (Richard Smith)
Barroso, the existential threat to the euro is mass unemployment Ambrose Evans-Pritchard, Telegraph. Glad he went after Barroso.
Congress less popular than cockroaches and Genghis Khan Raw Story. Isn’t half the planet related to Genghis Khan? Liking cockroaches is more questionable although in extremis, they can probably be used as a source of protein more readily than your typical Congresscritter. Maybe that’s the next step when you can’t afford catfood…
Ronald Reagan: “Social Security has nothing to do with the deficit.” MARKETWATCH 666 (yes I owe someone a hat tip….)
Social Security/Medicare vs Corporate Welfare Linda Beale
Republican Anti-Tax Pledge May Again Be What Protects Medicare and Social Security Jon Walker, Firedoglake (Carol B)
US oil imports to fall to lowest in 25 years Financial Times. So where are the defense budget cuts?
A Real Shill: The Nation’s Ari Melber Rancid Honeytrap (Ned Ludd). This is how Corporate America
leashes and collars supports liberal medial. Ari Melber is an Obamabot except he quibbles on a few issues (like Guantanamo back in the day) to maintain plausible deniability.
Financial Dermatologists Adam Levitin, Credit Slips
Another Slap on the Wrist New York Times. Editorial on the foreclosure fraud settlement.
Secret Goldman Team Sidesteps Volcker After Blankfein Vow Bloomberg. This is so patently bad I’d normally post on it, but the story itself gives some good grist. First, you can pick up how stupidly the Volcker Rule was drafted (due to lobbyist influence?) The idea that a prop trade was defined as 60 days or less was absurd. Many (I’d hazard most, but since I don’t sit on a desk, it’s hard to be sure) last 3-4 months. And if you wanted to take profits sooner, I have a sneaking position you could do so via a hedge rather than selling out and thus also skirt the 60 day rule. Second, Goldman went about circumventing the rule in the crudest possible way. This amounts to a stick in the eye of the authorities.
Dimon Says Some JPMorgan Execs ‘Acted Like Children’ on Loss Bloomberg. Wish I also had time to post on this. This is the same Dimon who in his 2009 letter to shareholders wanted to compare his execs to the US military at Iwo Jima, but his PR firm said it would resign if he kept that in. Now they are children. Who is the child in this picture? Ina Drew was one of his top paid officers until he scapegoated her (as he continues to do now). And get this part:
Jes Staley, former CEO of the investment bank who was stripped of day-to-day management duties in July, announced his departure yesterday. Staley, a one-time contender for Dimon’s job, is joining BlueMountain Capital Management LLC, the $12 billion hedge fund that profited from the bank’s trading loss.
Did Staley read the handwriting on the wall, that Dimon was going to throw him under the bus along with Drew and Zubrow, and started getting friendly, as in really friendly, with the firm that was on the other side of the unwind of the Whale trade to make sure he’d land well? If so, he played Dimon for a fool. This is such an obvious surmise that the account in the FT contains a denial of sorts. So probably not but one can’t be sure.
A Financial Service for People Fed Up With Banks New York Times
Understanding risk aversion in financial markets James Hamilton. Not sure I buy the theory that broker-dealers are the locus of the sort of arbitrage he suggests; there are turf wars over which unit gets how much capital (Goldman works super hard at keeping politics out of the way of opportunity capture, so anything observed at Goldman is not necessarily generalizable to the rest of the industry). I’d see global macro, family offices, and other relatively unconstrained players as more likely actors.
“AFTER THE FALL” New Yorker (furzy mouse)
Shared sacrifice – except for CEOs Matt Stoller, Reuters
Antidote du jour (Scott). For e-mail subscribers, this is a video of adult ducks swimming for the first time, be sure to come have a look: