Bitcoin Plunge Exposes a Fundamental Flaw (Businessweek)
Regardless of which side has more merit, investors will no doubt be scratching their heads at a far more fundamental question. If every developmental fork in the road for Bitcoin leads to a new currency branching off, how sustainable can its price boom be? True believers who think it to be as rare and precious as a digital version of gold may soon face the grim reality that it's just one flawed crypto-currency among many. A commoditized technology, in other words, rather than a technological commodity.
Goldman's Dealmakers Pack Suitcases to Chase Down Smaller Game (BBG)
Goldman Sachs hasn’t always chased those clients because they tend to do smaller deals with correspondingly lower fees, and they often don’t engage in related derivative transactions that can make the relationship more rewarding for the bank. This time, the firm is betting it can find derivatives or other transactions that appeal to them.
At the SEC, Whistleblowers Blow Whistle on Watchdog (WSJ)
Carl Hoecker, the SEC inspector general, is tasked with rooting out malpractice at the agency. At least two employees working for Mr. Hoecker have filed complaints to a different federal whistleblower-protection agency, alleging that he and his senior staff retaliated against them for calling out misconduct within the inspector general’s office, according to people familiar with the matter and documents reviewed by The Wall Street Journal.
Uber’s Driver Dilemma: Fare Hikes and Cuts Don’t Change Pay (WSJ)
When there is a fare cut, drivers’ pay per trip falls but riders flood the service, offering more business. A price hike eventually lures more drivers than Uber needs and scares away riders. The changes are short-lived as an equilibrium is reached after about eight weeks, and drivers’ average pay comes out the same. “The overwhelming story is that it doesn’t seem to matter what Uber does with fares.” ALSO: Uber Reaches Deal to Sell Stake to SoftBank
Bill Miller is staging one of Wall Street’s most closely watched comebacks (WaPo)
So far, the largest fund, the Opportunity Trust, is outperforming the S&P, though Miller says he is not trying to re-create the streak. To beat the markets for 15 years, he said, “it was like 1 in 20 million. My point being I don’t think there’s much to prove except I’m not senile, maybe.”
Your Politics are Hurting Your Investments (PragCap)
The reality is, while politicians are important, most of what they’re doing is not actually that important to the broader macro trends that are at work. For instance, year over year operating earnings are up 10% for the S&P 500. Does anyone really think that Donald Trump was the sole driver of that performance? Did Donald Trump make you get up and go to work everyday? You would have done it whether Trump won or not. And corporate earnings would be up 10% whether Trump won or not.
We're All Short Gamma (Behavioral Macro)
But there is only one thing worse than lagging all year and then missing the end of year push higher: lagging all year and loading up for the end of year push just before the market finally corrects. If this has never happened to you have no idea how mercilessly savage this can be. And since we haven’t had a correction in so long, if one were to come it’s easy to imagine it being larger than the garden variety sort.
Angry Sean Hannity Fans are Smashing Keurigs on Twitter Because 2017 Is Dumb as Heck (Gizmodo)
Social media users getting real mad and posting videos of themselves destroying things they already own is just one of the many dumb political stunts that have increasingly become a staple of (mostly far-right) Twitter. This video, in which a dude tosses one of the machines from a second-story balcony before shouting “Hope you’re happy, Keurig,” is a particularly good reminder that humans evolved from primates.