Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included. Due to technical problems this feature is shorter than usual today.
Jupiter's Moon Europa Has Plate Tectonics like Earth Does (Alexandra Witze, Nature Magazine, Scientific American) The differences are that Europa's plates are ice and it's molten material beneath is water. The existence of a body with do much water has increased the enthusiasm for exploratory probes.
Pivoteers will notice that the point 'A' low seems to be positioned in the middle of nowhere. In fact, it is at 244, the low of the 1987 Crash. The remaining two coordinates are so clear as to leave little doubt about the importance of the resulting 2028.44 Hudden Pivot target. So far, the S&Ps have gotten as high as 2011.17 - close enough for us to infer that a MAJOR top may already be in.
Making Money by Agreeing to Disagree (Vitaliy Katsenelson, Institutional Investor) Katsenelson says we can make more money by studying opinions that conflict with our own and identifying the exact points of conflict objectively. If you have trouble doing that then maybe you don't know as much as you thought you did. This advice does not only apply to investing folks - try politics, economics, etc., etc.
Spanish Bonds Tumble as Scotland Swing Spurs Catalan Comparison (Lucy Meakin and Eshe Nelson, Bloomberg) The surge in the polls in Scotland for "Yes" (for secession from UK) has increased the agitation for secession of Catalonia from Spain. There will be a referendum seeking approval for a separate Catalonia on November 19. Spanish bonds experienced the largest jump for interest rates today in four months in reaction to the increased separatist sentiment.
UK Industrial Output Exceeds Forecast With 0.5% Increase (Jennifer Ryan, Bloomberg) July Industrial Production (IP) rose more than expected in July as the rebound from May's contraction continued to gain strength. The entire 0.6% decline in May has been more than wiped out by advances in June and July.
CFTC Said to Alert Justice Department of Criminal Rate Rigging (Matthew Leising and Tom Schoenberg, Bloomberg) After more than a year of investigation the U.S. Commodity Futures Trading Commission (CFTC) has sent criminal referrals to the U.S. Department of Justice. The referrals involve the setting of benchmarks which determine benchmarks for interest-rate swaps. These benchmarks, such as ISDAFIX, are the basis for determining borrowing costs, pension payouts, future obligations of financial contracts and many other basic finance functions.. A single basis point of bias in the benchmark can be worth billions of advantage for some parties and corresponding losses for other parties. Regulators around the world are investigating allegations of manipulation and fraud in prices for commodities, currencies and interest rates. There may be many more criminal referrals coming later down the road.
Dignity (William Finnegan, The New Yorker) The fast food industry is at the forefront of a new unionization and higher minimum wage movement. This article is an overly-simplified view of the issues with a number of gratuitous "case study" stories. At the end of the article you may feel better informed but even if not you will have definitely have been treated to a well written piece that can be read and absorbed quickly for something of such length.
Here's Where Socialism Intrudes on Our American Dream (Shah Gilani, Wall Street Insights & Indictments) Shah Gilani has contributed to GEI. The socialization of housing market losses that should have accrued to lender who made imprudent loans is just the latest affront to capitalism, according to Gilani. He is incensed that the very same entities which should have taken losses in the housing bubble collapse are again creating new gains with further taxpayer losses in the scooping up of foreclosures of FHA-backed mortgages. This is baking in losses for the government and providing housing market recovery gains for Wall Street.
Pound Tumbles on Scots Poll as BOE Bets Pared, FTSE Drops (David Goodman and Neal Armstrong, Bloomberg) For the first time a poll has shown the separatists winning the election on secession coming up later this month, with a 51% result. The British pound, which could well become the English pound, got pounded, losing 1.3% overnight. It is down 2.7% since the first of the month, and a whopping 6.4% in the last two months.
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