Monday links: a rigged game

• abnormalreturns
• April 13th, 2009

It may be a long time before earnings rebound, in part due to reduced leverage and lower profit margins.  (Clusterstock, WSJ.com)

Investors have jumped back into the emerging markets.  (WSJ.com also EconomPic Data)

Doug Kass on some warning signs for the stock market rally.  (TheStreet.com)

Corporate credit quality is at a generational low.  (FT.com)

“Just how many of you really believed Thursday’s unbelievable Wells Fargo earnings?  Raise your hands.”  (Deal Journal)

“The bottom line is that if bank earnings are across-the-board too strong, then it looks like the game is just totally rigged.”  (Clusterstock)

Is a “surgical bankruptcy” for General Motors (GM) a real possibility?  (DealBook)

“So…the VIX is both extremely high and extremely low in historical terms, depending upon the lookback period.”  (VIX and More)

“Mentioning asset allocation in polite conversation is akin to discussing plumbing.  Everyone has an idea of what it is, they understand its importance, but it is a topic best avoided in polite conversation at all cost.”  (designing better futures)

Financial advisers have wholeheartedly embraced ETFs vs. mutual funds.  (The Wallet)

Why might an investor want to estimate daily hedge fund returns?  (All About Alpha)

Weakness in the public equity markets is going to put valuation pressures on private equity investors.   (WSJ.com)

“Investment banks and financial giants failed for a simple reason, and it had nothing to do with short-selling.”  (Jeff Matthews)

How is it that institutional money managers have escaped scrutiny in the failure of the global financial system?  (Baseline Scenario, Free exchange, Dealscape)

Did the banks mislead the Feds so as to garner TARP funding?  (naked capitalism, Dealbreaker)

“Fundamentally, my view is that the U.S. economy is on very thin ice, and that by focusing on the bailout of corporate bondholders rather than the restructuring of debt, we are courting the risk of a far deeper downturn.”  (Hussman Funds)

Do tough economic times benefit market leaders or their challengers?  (NewYorker.com)

With traditional career paths now closed, MBAs are flocking to Washington DC.  (Breakingviews, Forbes.com)

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