“Financial freedom is available to those who learn about it and work for it.” -Robert Kiyosaki
Featured article
Crash Boys
Michael Lewis raises some interesting questions about the recent arrest of a UK trader, accused with causing the flash crash of 2010.
“The first question that arises from the Commodity Futures Trading Commission’s case against Navinder Singh Sarao is: Why did it take them five years to bring it?” “Then there is the biggest question of all: How can a guy working from his parents’ house in suburban England whose only actionable orders were to BUY stock market futures cause such a sensational collapse in U.S. stocks?
Companies
Blackstone’s Oil ‘Scramble’ Doesn’t Materialize as Sellers Balk
“They’ve been able to go out and raise a lot of debt and, in some cases, equity publicly at values that we wouldn’t touch”
Related
Ditching Dreamliners: Here’s Why United Just Bought a Bunch of Older Airplanes
United chose the older models because of 1) a backlog in orders for the Dreamliner and 2) the low oil price. This seems at odds with the hopes of investors who are betting on rising oil prices in the short term.
“The Boeing 777-300ER guzzles more gas than a Dreamliner, but United likes the price.”
We Can’t let John Deere Destroy the Very Idea of Ownership Some interesting points to consider, despite being a call to arms rather than an article. “Over the last two decades, manufacturers have used the DMCA to argue that consumers do not own the software underpinning the products they buy—things like smartphones, computers, coffeemakers, cars, and, yes, even tractors.”
Markets
Bonderland – Fixed income markets are increasingly resembling something out of Lewis Carroll
“Often in finance, when there is a strong consensus something is correct, it can ultimately prove to be very wrong indeed. What we are seeing now are investors who have forgotten about the risk of rising rates – a significant risk in itself – and who are confusing calm markets with stable ones.”
Crash Boys
“The first question that arises from the Commodity Futures Trading Commission’s case against Navinder Singh Sarao is: Why did it take them five years to bring it?”
“Then there is the biggest question of all: How can a guy working from his parents’ house in suburban England whose only actionable orders were to BUY stock market futures cause such a sensational collapse in U.S. stocks?”
Blackstone CEO Schwarzman Sees ‘Excess’ in China’s Market
“There’s a lot of demand in China for anything touching the Internet,”
Related
Crazy Facts About China’s Stock Market That Will Make You Think Twice Before Investing
Here’s one: “Six percent of new equity investors are illiterate, Deutsche Bank said in a note about the “Chinese share frenzy.” Related “Those who cannot remember the past are condemned to repeat it.” -George Santayana
Investing
The remarkable life and lessons of Ronald Read, the $8 million janitor
“There is wisdom to be learned from Read’s investing and life experiences. How a man of modest means accumulated so much wealth contains exemplary lessons for saving that apply to all of us. But there is also a cautionary tale about recognizing the value of your finite time here on earth. Perhaps learning to enjoy life while you can is part of that equation.”
Long reads
Scientists find missing link in Yellowstone plumbing: This giant volcano is very much alive
“Risk assessment is tricky for low-probability, high-consequence events like volcanic eruptions.”
The making of Dr. Oz
“How an award-winning doctor turned away from science and embraced fame.”
Why not even exercise will undo the harm of sitting all day—and what you can do about it
“The really bad news: You can’t exercise away the habit’s harmful effects.”
Graph of the week
Creating a simpler, more valuable industrial company
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