Weil’s View on Finance, Afternoon Edition
Hello again, View fans. Time for your afternoon links. Here's some of what I've been reading today.
New Fedspeak buzzwords: "Broadly comfortable"
As in, Federal Reserve officials were "broadly comfortable" with Chairman Ben Bernanke's plan to start reducing bond buying later this year if the economy improves. That's from the Fed's meeting minutes for July 31. For those who don't have time to read them all, click above for the lowdown from Bloomberg News reporters Jeff Kearns and Craig Torres.
The Bernanke bubble hits Istanbul
Landon Thomas has an excellent story in the New York Times about commercial real estate in Turkey and other fast-growing emerging markets. It looks very familiar. "The money began to flow when the Federal Reserve and other major central banks cut interest rates to the bone in 2009 and cranked up the printing presses in a bid to spur recovery in the United States and other advanced industrial nations," he writes. "But now, with expectations mounting that the Federal Reserve, led by its departing chairman Ben S. Bernanke, may soon begin to tighten its monetary spigot, Istanbul’s skyline could well be a harbinger of an emerging-market bust brought on by unpaid loans, weakening currencies, and, eventually, the possible failure of developers and banks."
Why a guy named Amit Ghate is selling Tesla short
The reason I like Seeking Alpha is that it often has smart stuff written by investors I've never heard of before. Like Amit Ghate, who explains why he's short Tesla Motors, shares of which are up more than 400 percent in the past year. Reason No. 1: "The company's promotional approach & investor sentiment." For example, he writes, "the CEO takes times to tweet taunts at short sellers." Never a good sign.
The surprisingly complex market for Maine lobster
James Surowiecki explains in his latest New Yorker column. Lobster prices off the boat have fallen to as low as $2.20 a pound, down from almost $6 a pound in 2005. Lobstermen are at the mercy of the market, while restaurants are still able to charge for it like it's a luxury good.
More evidence of the U.S. housing market's rebound
Lowe's second-quarter earnings were up 26 percent, while sales increased 10.3 percent to $15.7 billion. The home-improvement chain's stock was up as much as 7 percent today.
(Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter.)