What we’re reading (6/7)
“Eight Megacap Stocks Make For A Funny Sort Of Bull Market” (Wall Street Journal). “[T]he renaissance of megacapitalization companies matters. These stocks account for the shift from a bear to a tentative new bull market. And their resurgence comes alongside significant shifts in market behavior, especially when it comes to interest rates. In particular, the megacap stocks no longer seem to care what the Federal Reserve does.”
“A (Very Short) History Of Global Reserve Currencies” (Michael Pettis, Financial Times). “The US dollar, analysts often propose, is the latest in a 600-year history of global reserve currencies. Each of its predecessor currencies was eventually replaced by another, and in the same way the dollar will eventually be replaced by one or more currencies. The problem with this argument, however, is that there is no such history. The role of the US dollar in the global system of trade and capital flows is unprecedented, mainly because of the unprecedented role the US economy plays in global trade and capital imbalances. The fact that so many analysts base their claims on this putative history only shows just how confused the discussion has been.”
“This Is What the Government Strangling Crypto Looks Like” (Slate). “With the two lawsuits, the SEC has effectively said that the free-for-all era of crypto trading is over. Coinbase CEO Brian Armstrong nodded to the gravity of the moment even as he tried to downplay the news, tweeting on Tuesday that ‘the complaint filed against us is exclusively focused on what is or is not a security’ and that ‘we’re proud to represent the industry in court to finally get some clarity around crypto rules.’”
“Binance Lawyers Allege SEC Chair Gensler Offered To Serve As Advisor To Crypto Company In 2019” (CNBC). “Documents filed by the SEC on Wednesday indicate that attorneys from Gibson Dunn and Latham & Watkins, two of Binance’s law firms, allege that Gensler offered to serve as an advisor to the crypto exchange in several March 2019 conversations with Binance executives and Zhao. He eventually met Zhao in Japan for lunch later that month, the filing claims.”
“CNN’s Story On The Ouster Of Its CEO Is A Giant Middle Finger” (Insider). “In a story published Wednesday, CNN senior media reporter Oliver Darcy described Licht's one-year tenure as ‘stained by a series of severe missteps.’ He said the chairman and CEO alienated employees at all levels of the organization and effectively ‘lost the room.’”
