What we’re reading (4/7)
“Digging Into A $344 Billion Investing Mystery” (Wall Street Journal). “Preposterous claims in private investment offerings illustrate an important point about red-hot ‘Reg D’ securities: No one is checking to see if the details in these filings are even remotely true[.]”
“A Look Into The Growing Reluctance To Fund Startups” (RealClear Markets). “For more than a century, startups have been critical to U.S. technological advancement. They could not exist today without venture-capital funding, which enables them to form and grow. So it's alarming that venture fundraising is now at a nine-year low. What is causing investors to stop putting money into venture capital?”
“How Fabulous Fab And 2008 Still Haunt The Markets” (Financial Times). “Twelve years after the last attempt to ban the conflicts of interest that made Fab a poster child for pre-crisis banker attitudes, the US Securities and Exchange Commission is secretly making another attempt. The interval hasn’t made his task any easier, nor has the complexity of financial regulation and the potential for unintended consequences – a point to bear in mind as policymakers examine the recent banking turmoil.”
“The Job Market Is Clearly Starting To Slow Down” (Insider). “February's gain was revised from 311,000 to 326,000. January's gain was updated from 504,000 to 472,000. That means nonfarm payroll employment seems to be showing some signs of slowing. Job growth of 236,000 is still good, but isn't as high as what the US has seen in the last several months. However, Friday's jobs report does still point to a robust economy.”
“Paul Singer, The Man Who Saw The Economic Crises Coming” (Wall Street Journal). “‘Valuations are still very high,’ he says. ‘There’s a significant chance of recession. We see the possibility of a lengthy period of low returns in financial assets, low returns in real estate, corporate profits, unemployment rates higher than exist now and lots of inflation in the next round.’”
