The change comes after Wells Fargo’s share of the municipal-bond underwriting business has shrunk as some governments have cut ties with the bank following a series of scandals...
"As machines have replaced people, and speed has replaced capital, the ability of the market’s liquidity providers to process complex information may lead to surprisingly large drops in liquidity when the next crisis hits."
It has come to this: as part of the Facebookization of America, U.S. consumers are now more likely to pay their monthly cell phone bill than their auto loan.
"Investors are now torn between wanting to avoid expensive valuations in the higher quality stock universe and the balance sheet risk typically associated with the cheaper value universe."
Turkey is in the midst of a true currency crisis and is losing the luxury of choice. The lira is capitulating, helping inflation soar and rapidly worsening Turkey’s external debt situation.
"The real currency of this world is not backed by gold, nor by oil, nor by bureaucratic fiat, nor even by direct military might. No, the real currency of this world is narrative, and the ability to control it..."
key economic releases this week are the minutes from the May FOMC meeting on Wednesday and the durable goods report on Friday. There are several speeches from Fed officials this week, including one from Chairman Powell on Friday
"The US fiscal outlook is not good. We project the federal deficit will increase from $825bn (4.1% of GDP) to $1,250bn (5.5% of GDP) by 2021. By 2028, we expect it to rise to $2.05 trillion (7.0% of GDP)."
With most hedge funds doubling down, and going all in - even more - on their top positions, while fleeing some recent favorites, here are the Top 50 most popular longs and shorts within the HF community...
"That’s not how it generally works once the Fed has met its economic goals and begins to tighten in earnest, a condition I believe has begun for this cycle."
"At the turn of the century, with sock puppet billionaires and Y2K buildouts, what were the odds you’d never have a chance to buy equities materially cheaper? That’s always the question to ask."
Scrambling to catch up to Goldman Sachs, JPMorgan recently created and filled the new position of head of "crypto-currency strategy", asking a 29-year-old banker to take charge.
