Society's Child

What the Toys 'R' Us bankruptcy tells us about market inefficiency

Jared Dillian
Investment Watch Blog
Thu, 07 Jun 2018 13:36 UTC

Everyone knows that Toys "R" Us went bankrupt. Very sad. And largely preventable. But that's not the story I'm interested in.

I don't care that Toys "R" Us went bankrupt - I care how they went bankrupt.

One day the bonds were trading at 96. Then they filed, and a few days later, the bonds were trading at 20. Bam. Just like that.

That is not usually how things work in credit markets.

Usually, smart analysts study a company and figure out well in advance that bankruptcy is a possibility. Sometimes these analysts know the company better than even management does.

The analysts tell their traders that the company is doomed. The traders short the bonds and knock down the price.

Then word starts to spread that there might be a problem. Then other analysts will study the company and other traders will short the bonds. And by the time the actual bankruptcy happens, it is a foregone conclusion.

That is what happens with efficient markets.

Austrian TV host on his 'toughest interview': Putin is 'extremely canny,' difficult to draw out

RT
Sat, 09 Jun 2018 13:31 UTC

Days after a tense conversation with Vladimir Putin, Austrian TV host Armin Wolf said the Russian president is an "extremely canny" interlocutor who knows how to make life difficult for an interviewer.

"It was definitely the toughest interview that I've ever done," Armin Wolf of Austria's ORF TV channel told Politico days after talking to Russian President Vladimir Putin. He is "an extremely canny conversationalist who does a few things that make life difficult for the interviewer," Wolf said, adding that Putin speaks expansively and touches upon a lot of detail.

Comment: Putin speaks German to ask Austrian journalist stop interrupting him

Debt Slavery: Argentina agrees to $50bn loan from IMF amid national protests

The Guardian
Fri, 08 Jun 2018 13:08 UTC

© Eitan Abramovich/AFP/Getty
Demonstrators hold signs that read ‘No to the IMF’ in Buenos Aires. The protest against Argentina’s loan attracted thousands of people.

Outcry as country requests assistance from international lender after peso plummets

The International Monetary Fund has stepped in to shore up the Argentinian economy with a $50bn (£37bn) loan agreement.

Argentina requested assistance from the international lender of last resort on 8 May after the peso weakened sharply in an investor exodus from emerging markets.

As part of the deal, which is subject to IMF board approval, the government pledged to accelerate plans to reduce the fiscal deficit - the gap between government spending and revenue - even as authorities now foresee lower growth and higher inflation in the coming years.

The deal marks a turning point for Argentina, which for years shunned the IMF after a devastating economic crisis in 2001-02 that many Argentinians blamed on IMF-imposed austerity measures. The president Mauricio Macri's decision to turn to the lender has triggered national protests.

Comment: Argentines have learned from history that such loans always come with strings attached. Recommended readings:

The Shock Doctrine: The Rise of Disaster Capitalism by Naomi Klein
The New Confessions of an Economic Hitman by John Perkins

Ukrainian neo-nazi mob film themselves assaulting Roma camp with hammers & axes

RT
Sat, 09 Jun 2018 12:48 UTC

Members of a far-right group proudly filmed themselves destroying a Roma camp in Kiev- marking the second such attack by militant nationalists against Roma living in Ukraine's capital in the past six weeks.

The National Druzhyna, a nationalist militia formed by veterans of the far-right Azov Battalion, used axes and hammers to dismantle a small Roma camp in Kiev's Holosiyivskiy Park. The right-wing vigilantes had earlier issued an ultimatum on their Facebook page, instructing the Roma to vacate their camp within 24 hours or be forced out by a "mob."

Hours later, around 20 Druzhyna members, many sporting balaclavas, descended on the camp, wielding axes, sledgehammers and cameras to document the destruction. Footage and photos of the pogrom were uploaded to the militants' Facebook page, but they later vanished.

Iraqi refugee suspected of raping and killing German teen girl has been detained

Sputnik
Fri, 08 Jun 2018 17:13 UTC

An Iraqi refugee named Ali Bashar, who allegedly raped and strangled a Jewish teenager from Mainz, fled with his family from Germany. The man, who went to the country following the announcement of the "open borders" policy, reportedly has a criminal record, being suspected of several other offenses.

Iraqi refugee Ali Bashar, the main suspect in the rape and murder of 14-year-old Susanna F. in the German city of Mainz, has been "arrested by Kurdish authorities in northern Iraq at the request of German federal police", according to German Interior Minister Horst Seehofer. The prime suspect of the crime, which shook Germany, fled the country with his parents and siblings before local police could detain him. The alleged perpetrator was suspected along with a 35-year old man of Turkish decent soon after the body of the victim was discovered. The latter was detained, but cleared of suspicions and released some time later, while Bashar managed to go on the run.

The German newspaper Frankfurter Allgemeine Zeitung reported that Bashar could not be arrested because he went underground a few days ago. He has reportedly returned to Iraq with his family of eight, flying home via Turkey. The media reports that false papers were used. This, however, hasn't been confirmed. Police have said that the fugitives managed to fly from Duesseldorf although names on their papers and airline tickets didn't match. According to the authorities, only photos on the identity documents.

Comment: See also:

Cynthia Nixon, from 'Sex and the City', brings spirit of Sanders to New York governor's race

Ed Pilkington
The Guardian
Fri, 08 Jun 2018 11:00 UTC

Fueled by small donors, the Sex and the City star spells out her challenge to Andrew Cuomo and the Democratic establishment

Cynthia Nixon will not make the same mistake twice. As the former Sex and the City star arrived for a campaign event in Buffalo, New York this week she was greeted by a phalanx of placard-wielding supporters of her opponent, the incumbent governor of the state, Andrew Cuomo.

"Cynthia go home," one poster said, which was a bit rough given the almost 400-mile journey she'd just made from her home in New York City. "This is upstate - nice of you to find it," said a snarky second. Another said: "Next stop Ithica."

Comment: Seems rather hypocritical for liberals to chastise Trump for being a TV star, who knows nothing about politics, to then support a former TV star in Nixon. Her campaign promises seem more than a little hollow (tax the rich, give the plebes their weed, protect the minorities), but realistically, that tends to be what people vote for.

French gov approves proposal to break rail union's crippling 3 month strike over controversial reforms

connexionfrance.com
Sat, 09 Jun 2018 09:41 UTC

The French Senate chamber, where Senators voted in favour of the reforms by 240 to 85

The French Senate has approved the controversial proposals to reform national railway firm SNCF, following the first debate on the subject.

The political body adopted the reforms on Tuesday (June 5), by 240 votes in favour to 85 against.

The proposal text will now be discussed on Monday (June 11) by a cross-party joint committee, which has been given the task of finding a final agreement between MPs and Senators.

The vote has been described as "how to stop a strike", by political reporter Gérard Cornu, who said: "The Senate has put the reform on the right track. I am sure it will not be derailed by the joint committee."

Comment: It's not just France's rail union that are up in arms about the reforms Macron's government are implementing:

Also check out SOTT radio's: Behind the Headlines: 'Quitaly' Highlights EU's Democratic Crisis

'Welcome to the FIFA World Cup!': President Putin greets football teams and fans coming to Russia 2018

RT
Fri, 08 Jun 2018 09:24 UTC

Russian President Vladimir Putin has released a personal video address welcoming each of the 32 participating nations and the millions of expected fans arriving in Russia to the 2018 FIFA World Cup finals.

With just days to go until the grand showpiece event begins on Thursday, President Putin has invited all those taking part in the first World Cup ever to be held on Russian soil to get to know Russia and enjoy a true celebration of football, diversity and culture.

The month-long football festival kicks off when host Russia take on Group A rivals Saudi Arabia on June 14 at the tournament's grand and iconic epicenter - the newly-renovated Luzhniki Stadium in Moscow, where Putin will be in attendance.

Nigeria ambassador: No racism issue in Russia, come to World Cup and see for yourself

RT
Sat, 09 Jun 2018 08:33 UTC

The Nigerian ambassador to Russia believes the country is a safe place for black people, amid Western media's drive to portray it as a place with rampant racism ahead of the FIFA 2018 World Cup.

"Racism is a very serious issue, it breaks your morale, it breaks your concentration," Ambassador Steve Davies Ugbah said at a press conference in Moscow on Friday. "When there are racist attacks on players, particularly on those on the field, I think it's unfair to the game. I'm very very happy that FIFA has taken a proactive role in terms of trying to discourage or trying to mitigate the incidents of racism in football."

The ambassador was answering a question about a recent statement made by England's star footballer Danny Rose, which was widely reported by media in the UK. Rose said he told his family not to come to cheer for him at the FIFA 2018 World Cup in Russia to avoid racist abuse.

Horrific moment: IDF gas canister hits Palestinian protester in the face (GRAPHIC PICTURES)

RT
Fri, 08 Jun 2018 08:18 UTC

Palestinian protester Haitham Abu Sabla surrounded by medics

A Palestinian protester is on life support after a tear gas canister launched by an Israeli soldier hit him square in the face. The still-smoking canister got lodged in the man's cheek and had to be surgically removed.

A Reuters photographer snapped the moment after a tear gas canister caught Palestinian protester Haitham Abu Sabla in the face. The blood-chilling images show the man splattered with blood, with the canister embedded right next to his nose, with the tear gas still billowing out of it, as well as from the protester's mouth.

Comment: See also: At least 4 killed, hundreds injured in Naksa protests in Gaza

well you sure don't have to think about anything so what would you call it

cracker

Greek acting gods have a joke “Sapiens is wise, because they know, that we know better what to do with their will, than they do.” Vicious foreign...

Orwik

Jut for laffs here's George Carlin doing a spoof as the Architect in the Matrix: [Link] * BTW, this just came out today: Leonard Cohen - Puppets...

parzival

.. .. Is the Brits' Prince Pedo ok? [Link]

Jibrish

.. .. jUS Con gress shid show [Link] Let's go pfhizer [Link]

Jibrish

Society's Child

What the Toys 'R' Us bankruptcy tells us about market inefficiency

Austrian TV host on his 'toughest interview': Putin is 'extremely canny,' difficult to draw out

Debt Slavery: Argentina agrees to $50bn loan from IMF amid national protests

Ukrainian neo-nazi mob film themselves assaulting Roma camp with hammers & axes

Iraqi refugee suspected of raping and killing German teen girl has been detained

Cynthia Nixon, from 'Sex and the City', brings spirit of Sanders to New York governor's race

French gov approves proposal to break rail union's crippling 3 month strike over controversial reforms

'Welcome to the FIFA World Cup!': President Putin greets football teams and fans coming to Russia 2018

Nigeria ambassador: No racism issue in Russia, come to World Cup and see for yourself

Horrific moment: IDF gas canister hits Palestinian protester in the face (GRAPHIC PICTURES)

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