A Fake $3.6 Trillion Deal Is Easy to Sneak Past the SEC (BBG)
For more than three decades, the SEC has accepted online submissions of regulatory filings -- basically, no questions asked. As many as 800,000 forms are filed each year, or about 3,000 per weekday. But, in a little known vulnerability at the heart of American capitalism, the government doesn’t vet them, and rarely even takes down those known to be shams. “The SEC can’t stop them,” said Lawrence West, a former SEC associate enforcement director. “They can only punish the filer afterward and remove the filing from the system. So, caveat lector -- let the reader beware.”
If healthcare vote fails, would jeopardize 'Trump trades': Gundlach (Reuters)
"Surveys show that people believe the (Obamacare) repeal is the most likely part of Trump’s agenda to be passed," said Gundlach, who oversees more than $101 billion in assets at DoubleLine, told Reuters. "So if you can’t pass the repeal, everything else is in doubt for sure."
'Subprime credit losses are accelerating': There's a problem in the auto loan market (charts) (BI)
"Subprime credit losses are accelerating faster than the prime segment, and this trend is likely to continue as a result of looser underwriting standards by lenders in recent years," said Michael Taiano, a director at Fitch.
Age-Old Adages for the Bull Market (Yardeni)
What does stand out is that the tightening phase of monetary policy often ends in tears because it tends to trigger financial crises. Forward P/Es have a tendency to peak before the crises hit as investors begin to fret that higher interest rates may be starting to stress the economy.
Will Preet Run? (Politico)
According to more than a dozen former colleagues and longtime friends interviewed on and off the record, Preet isn’t running. They describe a man clearly enjoying the spotlight, who doesn’t mind kicking Donald Trump in the shins when he gets the chance—but also someone who has never shown much interest in political office himself, and with two soon-to-be college age children is more likely looking to make money in a hurry. And even if Bharara wanted to run, it is not far from clear that the people who actually vote in New York have the same kind of enthusiasm that the political press has for Preet.
Populism: The Phenomenon (Ray Dalio)
The exercise is inherently rough, so don’t squint too much at particular wiggles. But the broad trends are clear. Populism has surged in recent years and is currently at its highest level since the late 1930s (though the ideology of the populists today is much less extreme compared to the 1930s).
How to short Uber (and other private companies) (Mirror Labs) Most of the interest we received was one-sided interest on the top dozen Unicorn names (e.g. everyone wanted to short Theranos, Dropbox and WeWork, or go long Airbnb and Snap). The most controversial name that had sufficient two-sided interest in it has been Uber, of which we’ve collected over $200 million in interest. Over the last several weeks with the media’s negative headlines on Uber, we’ve gotten much more short interest while the long side has been getting cold feet.
Islamic television station in Senegal blames saboteur for airing hardcore porn (CBS)
Viewers tuning into Touba TV on Monday afternoon got a shock when hardcore pornography was aired from 1:10 p.m. to 1:30 p.m. Touba TV on Wednesday called the broadcasting blunder a “criminal act” and said the formal complaint will make it possible to identify the “authors who have an unknown agenda.” The broadcaster said its viewers were offended, and it condemned the attempt as a “satanic move” to sabotage the values it advocates.