Weil's View on Finance
Hello, View fans. Here's a rundown of what I've been reading this morning.
The latest trading error to roil markets
Perhaps it was no great shock when it happened in China this week at a small brokerage, Everbright Securities. But Goldman Sachs? Oy. From Bloomberg News: "A programming error at Goldman Sachs Group Inc. caused unintended stock-option orders to flood American exchanges" yesterday morning, "roiling markets and shaking confidence in electronic trading infrastructure."
Rough time for short sellers
The 100 most heavily shorted stocks in the Russell 3000 index are outperforming the average returns of stocks in the index, the Wall Street Journal's Juliet Chung and Rob Barry write. The stocks with the highest short interest are up almost 34 percent year to date, compared with about 18 percent for the index. That's the biggest gap in more than a decade.
Eric Holder is talking tough again
Also from the Wall Street Journal, U.S. Attorney General Eric Holder sat down for an interview and said new cases related to the financial crisis are underway and may be unveiled in the coming months. "My message is, anybody who's inflicted damage on our financial markets should not be of the belief that they are out of the woods because of the passage of time," he said. The statute of limitations for many white-collar crime cases is five years, so we'll see.
Don't fight the Fed, but do fight the Bank of England
So says Matthew Lynn in his column this morning for Market Watch, writing about Mark Carney, the new Bank of England governor who was recruited from Canada's central bank: "The U.K. has big and powerful financial markets with a mind of their own. And a central banker cannot expect to control them. The City has beaten other Bank of England governors, and it will beat this one as well. There will be a rocky ride ahead — but investors who get on the right side of the trade should do well."
The case for opening LinkedIn to young teens
This week LinkedIn lowered its minimum age for users to 14 from 18. Daniel Gross of the Daily Beast says the move makes complete sense: "It's never too early to start networking."
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Jonathan Weil at firstname.lastname@example.org