Jack Bogle Explains How the Index Fund Won With Investors CNN Money. The headline isn’t very interesting. This, from Vanguard Group founder Bogle on secondary markets, is:
Q: You’re concerned that the financial sector is too big. Why?
[BOGLE]: The job of finance is to provide capital to companies. We do it to the tune of $250 billion a year in IPOs and secondary offerings. What else do we do? We encourage investors to trade about $32 trillion a year. So the way I calculate it, 99% of what we do in this industry is people trading with one another, with a gain only to the middleman. It’s a waste of resources.
Why 99% of trading is pointless MarketWatch. Following up on Bogle:
It’s a lot of money, $32 trillion. Nearly double the entire U.S. economy moving from one pocket to another, with a toll-taker in the middle. Most people refer to them as “stock brokers,” but let’s call them what they are — toll-takers and rent-seekers.
Eesh, it’s like these Wall Street guys have Volume III of Das Kapital on their nightstands for bedtime reading. What’s the world coming to?
Goldman Sachs agrees $270m settlement with mortgage bond investors International Business Times. Cost of doing business.
Who Really Benefits From Bailouts? Bloomberg
Lehman Brothers Once Again… Brad DeLong, Washington Center for Equitable Growth
Surveys in Crisis Carola Binder
Federalism Form and Function in the Detroit Bankruptcy SSRN. Of relevance to Puerto Rico.
Under the right conditions, we learn, a federal court can formally honor the explicit restrictions in the Bankruptcy Code while functionally exercising significant influence throughout a chapter 9 case. Some of the , including confidential mediation overseen by a powerful chief district judge and the court’s feasibility team.
Bailout talks gain pace amid tensions Ekathimerini
Greece’s invisible economy Tribune-Review
Jeremy Corbyn: ‘This is the most open democratic election Labour has ever had’ Guardian. Interview.
Black Injustice Tipping Point
Freedom Rider: Obama’s Africa Hypocrisy Black Agenda Report
Prince Edward County’s Long Shadow of Segregation The Atlantic. I’m sure the shadow is just as long in, say, Boston.
Authorities investigating after 47-year-old loses consciousness in Dallas County jail lobby, dies Dallas Morning News. “He came in saying, ‘Don’t be scared of me. I just need some help.’ They just tackled him as if he’d threatened their lives,’ [April Berryhill, who had come to the jail to submit a property release form,] said.”
Top Clinton aide accused of receiving overpayments at State Department WaPo. Huma Abedin. Only $10K, chump change, but the knives are out, aren’t they?
Cables Show Hillary Clinton’s State Department Deeply Involved in Trans-Pacific Partnership International Business Times
Joe Biden in 2016: What Would Beau Do? MoDo, NYT
Election 2016: Jeb Bush Super PAC Donors Benefited From Bush’s Time As Florida Governor International Business Times
Conservative donor Koch urges end to ‘corporate cronyism’ AP. Wowsers. That’s really meta.
Small Pool of Rich Donors Dominates Election Giving NYT. “Giving.”
Why Conservatives Are So Desperate to Debunk One Hillary Clinton Chart David Dayen, Fiscal Times. Important, despite the clickbait headline.
Does Zimbabwe Really Need Trophy Hunting? New Yorker (furzy mouse).
Do Chinese People Lead More Nuanced Emotional Lives? Priceonomics. “The researchers hypothesize that if someone places a higher value on interdependence, they’ll also place a higher-premium on this kind of suffering-derived understanding.”
Trevor O’Brien, the Product Lead Running All Twitter Apps, Is Departing ReCode. Twitter, a wonderful platform cursed with stupid money and bad management.
Under the Surface update tells backstory of NY frack ban Findings statement denouement of environmental epic Shale Gas Review. The home rule movement.
The invisible network that keeps the world running The Verge. The romance of supply-chain infrastructure.
Antidote du jour (via):