Diversification works so long as you look beyond equities.  (dshort, ibid)

“What level of trades per second becomes problematic in terms of obfuscation versus practical and economic value?”  (Rick Bookstaber)

Commodity ETFs are now rife with tracking error.  (WSJ)

Stretching for a substitute for UNG.  (IndexUniverse)

The role of the rising cost of commodity swaps and the closure of the PowerShares DB Crude Oil Double Long ETN (DXO).  (IndexUniverse)

High frequency trading is also an issue in the commodity markets as well.  (DealBook)

Who are EWT LLC and what are they doing in the commodity ETF world?  (FT Alphaville)

Investors should be wary of pre-IPO converts.  (Breakingviews)

The downside of the credit rating agencies losing their “free speech” status.  (Falkenblog)

How miscommunication helped cause the fall of Lehman Brothers.  (Felix Salmon)

The July non-farm payroll numbers in pictures.  (Bespoke, Calculated Risk, EconomPic Data, FiveThirtyEight)

So-called prime borrowers are under increasing pressure.  (WSJ)

Are you an investor or a gambler?  (Big Picture)

On the role genetics and IQ play in investing.  (CXO Advisory Group)

Traders engage in “implicit learning” that helps guide their decision making.  (Big Picture)

On the role of “emotional contagion” in the formation of bubbles.  (The Big Money)

Everyone will soon be talking about this Paul Krugman article: “How did economists get it so wrong?”  (NYTimes also Clusterstock, Curious Capitalist, Infectious Greed, Crossing Wall Street)

Be afraid.  Be very afraid.  The cupcake crash is coming.  (Slate)

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