At Hedgeye, we rarely mince words in assessing Old Wall and it's media. Below are a selection of interesting links to stories that caught our attention (for both good reasons and bad).
- Ben Bernanke, Brookings Blogs, "Ending "too big to fail": What's the right approach?" An interesting read, if only to get up to date on the latest central planning orthodoxy surrounding "too big to fail."
- MarketWatch, "Fed’s Yellen says negative rates would need careful consideration." NIRP! Rep. Brad Sherman (D., California) released a letter from Fed head Janet Yellen in which she writes she cannot "completely rule out the use of negative interest rates in some future very adverse scenario."
- Wall Street Journal, "WSJ Survey: Economists Divided Over Next Fed Rate Increase." This one is just silly. "About 31% of economists surveyed by WSJ this month said the Fed will raise rates in June, down from 75% in April." As we Tweeted yesterday, in other words, "Faulty forecasters are uncertain about the whims of unelected bureaucrats."
- Reuters, "BOJ will act decisively using its 'ample' tools: Kuroda." BoJ head Haruhiko Kuroda said that the "risks to [Japan's] economy are tilted to the downside" but that the central bank will act "decisively" to achieve the 2% inflation target and reiterated that it has "ample" policy octions available to expand stimulus. Nope. Macro markets disagree. Nikkei was down -1.4% today.
- Clifford Scott Asness, BloombergView, "Hedging on the Case Against Hedge Funds." A thought-provoking op-ed on how best to evaluate hedge fund returns from the founder of hedge fund and asset management firm AQR Capital Management. It's as balanced an appraisal as you'll read.