Quote of the day

David Graeber, “In fact, if we count the Third World debt crisis, which did after all affect most human beings on the planet, the world has been in a continual series of debt crises since the ‘70s.”  (Speakeasy)

Chart of the day

Quite a shift in the VIX futures term structure over the past two weeks.  (VIX and More)


The worst start to August ever.  (Bespoke)

Dow Theory is unequivocally on a sell signal.  (StockCharts Blog)

No matter how you measure it “a concerted and exhaustive selling wave has taken place.”  (Pragmatic Capitalism)

“Very slow growth” and “plenty of fear” are priced into the stock market.  (Barron’s)

Junk bonds are moving the opposite direction as Treasurys.  (StockCharts Blog)

Investor psychology changed for the worse last week.  (WashingtonPost)

Traders are reflexively using 2008 as their model for market volatility.  (NYTimes)

There is a pent up desire on the part of institutions to sell US equities.  (WSJ)

Earnings season has not been kind to stocks.  (Bespoke)

If the markets don’t stop falling this may be in our future.  (Phil Pearlman)


It was a tough week for everyone, stay focused.  (Dynamic Hedge)

On the optionality of cash.  (Free exchange)

Home bias affects us all.  (NYTimes)

Periods of market volatility are a time for introspection.  (Phil Pearlman)


Is it time for Pepsi ($PEP) to “pull a Kraft”?  (Barron’s)

What is weighing on Ford ($F) shares?  (WSJ)

Get ready for a prepaid iPhone that is an “innovative, category killer.”  (SAI)


The active ETF space is getting crowded.  (IndexUniverse)

The increasing small world of short-selling hedge funds had a good week last week.  (MarketBeat)

Talk about the hot IPO market has dried up.  (Dealbook)


Don’t forget about Italy.  (Money Game)

Investors have already been looking at emerging market bonds in a new light.  (beyondbrics)

S&P downgrade

Check out the spread on sovereign bonds rated AAA by S&P.  (Baseline Scenario also SurlyTrader)

S&P will likely face a backlash due to their decision.  (A Dash of Insight)

It is time to remove the central role of NSRSOs in the financial system.  (Rajiv Sethi)

Sovereign defaults are ultimately political decisions, not economic ones.  (Felix Salmon)

Character has long since dropped out the ‘5 C’s of credit.’  (Interfluidity)

How should ratings agencies react to novel credit structures?  (Aleph Blog)

What would happen to the ratings agencies if they lost their regulatory clout?  (Crooked Timber)


Bond holders shouldn’t necessarily cheer a return of QE. (WSJ)

Good luck trying figure out the influence of index funds on commodity prices.  (Econbrowser)

Rail traffic was soft in July.  (Calculated Risk)

Just how much pent demand for housing is there?  (Economist)

Three things the Fed could do right now.  (Real Time Economics)

Earlier on Abnormal Returns

What you missed in our Saturday long form linkfest.  (Abnormal Returns)

What everyone else was reading this week on Abnormal Returns.  (Abnormal Returns)

The ultimate USA downgrade linkfest.  (Abnormal Returns)

Mixed media

The neuroscience of success and the important role of self-control.  (Big Think)

As great as the social web is, it is no substitute for face-to-face interactions.  (The Frontal Cortex)

Abnormal Returns is a founding member of the StockTwits Blog Network.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.