Business Education

Morgan Stanley Recalls Quant From Bridgewater Internship/Spy Mission

The Morgan Stanley SWAT team extracts Court Crane from 1 Glendinning Place. By English: Lance Cpl. Kenneth K. Trotter Jr [Public domain], via Wikimedia Commons Three years ago, Morgan Stanley embedded a spy within Bridgewater Associates to learn its mysterious ways. Specifically, the mysterious and lucrative ways and means of its army of Principled robots. And with Ray Dalio and co. temporarily distracted by other matters, the bank decided it was the perfect time to safely extract him from Westport and get him to work putting other people at Morgan Stanley out of work. And maybe teach them to videotape all meetings and how best to deal with sexual misconduct allegations. Morgan Stanley has rehired a former electronic trading specialist as investment banks arm themselves for a future in whi...

Turkey Now Less Credit Worthy Than Senegal Amid Ongoing Currency Crisis … Is What A ‘Gulenist Tool’ Would Say

Listen, it is imperative that you understand something and that something is this: Turkish President, Kurd hunter extraordinaire and world-renowned rates strategist, Recep Tayyip Erdoğan, knows what he’s doing, ok? Sure, there’s a lot of market speculation that maybe his theories about interest rates and FX and inflation are indicative of his generalized penchant for lunacy and yes, there are some folks out there who think it would be an absolutely terrible idea for him to go through with the promise he made last week when he told a shocked Bloomberg anchor that he’s going to basically name himself central bank head, but that’s all nonsense. It’s just jealous foreigners trying to sow doubt and confusion and otherwise sully his sterling reputation. Or worse, it’s evidence the firms that are...

Craig Carton Pleads Stupidity, And Who Are We To Argue?

Craig Carton’s intellectual deficiencies were readily apparent to anyone whose car radio was stuck on WFAN in New York on weekday mornings before his untimely arrest in September on charges of running a ticket-scalping Ponzi scheme at the expense of an allegedly well-run hedge fund. Presumably, his lawyers are preparing transcripts of some of his choicer takes on the Mets and Jets to fortify their argument that he should not be facing those charges on account of those intellectual deficiencies. “The Indictment is devoid of any allegations that Mr. Carton possessed ‘culpable intent’ at the time the Hedge Fund established the loan facility for approximately $4.6 million in the ticket resale business on December 8, 2016,” reads the court document. “The Government has failed to put forth any a...

America Doesn’t Have The Stomach For Trump’s Trade War

President Trump’s capitulation to the Chinese only surprising in that it was so complete. In exchange for lifting the threat of new tariffs on $150 billion worth of goods, the president received nothing besides vague assurances of increased purchases of American agriculture, something that rapidly rising demand would have necessitated anyway. One must give credit to Chinese negotiators, who wisely realize they have nothing to gain from taking Trump’s tariff threats seriously until the American electorate signals its support for the trade war over the course of at least another election cycle. And let’s also credit Donald Trump’s predecessors. It turns out that they’re probably not as stupid as the president thinks, and that lopsided terms of trade between China and the U.S. hasn’t resulted...

Winter Came And Appears to Be Sticking Around J.C. Penney

J.C. Penney can attribute its low sales during Q1 to cold weather, but as sunshine spreads across the East Coast, a rain/hail/snow cloud continues to loom over the once great department store. Online retail sales have been hacking away at their profits for months, but a Tyson-esque blow was delivered as Lowe’s came in hot this morning with a haymaker right to the face of J.C. Penney by announcing they had ripped CEO, Marvin Ellison, from the near-lifeless body of the department store. J.C. Penney Co. slumped after Chief Executive Officer Marvin Ellison abruptly resigned to take the top job at home-improvement retailer Lowe’s Cos. J.C. Penney, the Derrick Rose of department stores, has undergone plenty of change in an attempt to fill their former shell, but Ellison’s departure is not lookin...

Bond Market Pretty Sure Populism Is More Dangerous Than Any Sanctions Russia Might Have Incurred For Covertly Pushing Populism

If you had to choose between the semi-global populist uprising on one hand and the threat of ongoing tensions between Washington and Moscow on the other, which would you pick as the greater threat in the context of markets? It’s an interesting question for a number of reasons, not the least of which is that there’s an argument to be made that part of the calculus for the Trump administration when it comes to the imposition of harsh sanctions on Russia is the idea that those sanctions can be used as a smoke screen to combat allegations of collusion. That alleged collusion was part and parcel of a broader effort by Russia to influence political outcomes in Western democracies by capitalizing off the surging popularity of populist candidates and nationalist sentiment in France (Marine Le Pen)...

Jack Bogle’s Bucket List: Finish Book, Commission Self-Portraits As Napoleon And George Washington, Dance On ETFs’ Grave

Jack Bogle is nearing 90. He’s been more-or-less retired for decades. And each passing day brings more and more vindication. But he’s not quite done. He’s still got some piss and vinegar to spit in the direction of active managers (in spite of the fact that his company now employs some), and he’ll do it in the form of another book. “This will be my last book,” Bogle says. The first part is an anecdote-rich history of Vanguard. The second is a history of the half-dozen funds that drove Vanguard’s growth—not just the Vanguard 500 Index (VFINX) but also Vanguard Wellington and the Windsor Funds. The third includes articles he’s published, including the latest one called “The Modern Corporation and the Public Interest.” The last two sections are the future of investing, and personal reflection...

Disputes

Monday was predictable. Risk assets rallied after Steve Mnuchin’s Sunday comments about “putting the trade war on hold“, although hilariously, he showed up on CNBC to “clarify” that it was never in fact a “war” but rather a mere “dispute”: Moments ago: Treasury Secretary Mnuchin tells @SquawkCNBC that this is a trade “dispute” that the U.S. is in with China, “it never was a trade war”https://t.co/uH3OSpWHmW pic.twitter.com/hPCFIo8w4V — CNBC Now (@CNBCnow) May 21, 2018 I guess that’s Steve, although given how stiff and mechanical he is on TV, one often wonders whether they’ve hired one of those Chuck E. Cheese Animatrons out of retirement and dressed it up in a suit to double for Mnuchin in interviews. The equity rally began overnight in Hong Kong and the risk-on sen...

Hi, I’m Thad The Intern

What’s up, guys? It’s Thad the Intern. I have the pleasure(?) of spending this summer interning with Dealbreaker covering Wall Street, and more specifically, Wall Street interns. Overworked interns are the backbone of the American economy from May to August. Whether it’s making copies or grabbing the coffee or being the emotional gimp of a junior banker working out his own demons, interns are completing tasks that are pivotal to the operations of some of the biggest companies in the world. We come into the workplace, wide-eyed with dreams of one day owning a summer home out in Montauk, only to realize that before you have a beachside cottage, you need to stand on the corner of 51st and Lex bleary-eyed, broken and hungry for the sweet release of death wondering how you fucked up that Jamba ...

Don’t Worry: Steve Wynn Already Has An Elbow-Hole-In-The-Picasso Guy

In happier times. By User1964; Cropped by User:Bobak (User1964) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons You don’t become a king of Las Vegas without knowing some guys. People who get things done. Problem solvers. Fixers, y’know? For nearly 40 years, Steve Wynn was a king of Las Vegas, and had all kinds of fixers: Divorce lawyers, libel lawyers, other kinds of lawyers. Unfortunately for him, a sexual abuse and harassment guy was not among them, and so he’s been downsizing lately. A few millions shares of his namesake company here, a few million more there and, lacking any more such shares, a $70 million Picasso he had lying around. The thing is, Wynn Picassos about to change hands have a tendency to fall down the stairs or accidentally smash all of their fingers while trying to hand t...

One Wall Streeter Discovers It’s Ok To Be ‘DUMB’

Listen, I’m going to start with an inflammatory assertion, because that’s something I’m prone to doing and because “it gets the people goin’!” Here’s my inflammatory contention: “smart beta” is bullshit. And to the extent it started out some years ago as a right-of-center concept on a hypothetical continuum where the left is labeled “great idea” and the right is labeled “patently egregious bullshit”, smart beta ca. 2018 can properly be labeled “far-right”. There’s so much wrong with the smart beta industry that it’s difficult to know where to start and to be sure, people who write under their actual, real-people names (so, not me) have written exhaustive critiques, many of which you can find with a simple Google search. If you’re looking for “credible” analysis from “very serious” people w...

Jose Canseco Needs A Lawyer For An ICO That Merges Celebrity Crypto With Unwanted Hugs

Photo: Getty Images Some people might look at the zeitgeist right now and think that the only thing less appealing than a celebrity ICO is a male celebrity offering to hug people. And practically no one would see value in combining the most mocked thing in finance with a twist that seems to flaunt its opposition to the #MeToo movement. But then again, most people are not Jose Canseco. That’s right, you jabronis, everyone’s favorite steroid-using market genius not named Nassim Nicholas Taleb is getting in on the crypto craze at exactly the right time! You know, like he did with gold. From the Twitters: Cansecoin is launched! If u are a good ICO lawyer please get a hold of me . — Jose Canseco (@JoseCanseco) May 19, 2018 That sound you hear is the entire American legal community unplugging th...