Good afternoon, View fans. Here’s a look at some of what I’ve been reading today.
Richard Fisher on what’s next for the Fed
The president of the Federal Reserve Bank of Dallas came up with a catchy name for his speech today: “Horseshift!” As always, he is no fan of quantitative easing. Fisher says the Fed is closer to slowing its monthly bond buying. Excerpt: “A corollary of reining in this massive monetary stimulus in a timely manner is that financial markets may have become too accustomed to what some have depicted as a Fed `put.’ Some have come to expect the Fed to keep the markets levitating indefinitely. This distorts the pricing of financial assets, encourages lazy analysis and can set the groundwork for serious misallocation of capital.”
Chase for yield heads to Europe
Lisa Abramowicz of Bloomberg News writes that “investors are gravitating to euro-dominated corporate debt as they seek refuge from rising U.S. Treasury yields.” Investors plowed $113.6 million into European high-yield bond funds in the week ended July 31 while pulling $567.3 million from similar funds in the U.S. It seems Europe’s riskiest debt has become a haven for some bond buyers. Interesting tidbit: This was the most-read article today on the website of the Athens newspaper Kathimerini.
Herbalife saga gets wilder
William Ackman, who is betting against Herbalife and has sold the stock short, tells the New York Post he is “very disappointed” in George Soros, who has been buying the shares. The New York Post has Ackman’s latest allegations. This would make a great reality TV show if the billionaire investors would let cameras inside.
The bear case on Green Mountain
Bill Alpert of Barron’s says investors in Green Mountain Coffee Roasters have reason for concern. He cites data showing that unlicensed single-serve coffee products are gaining market share at a faster rate than the company predicted.
More on the battle of Richmond
San Diego Union-Tribune columnist Steven Greenhut looks at the plan by the city of Richmond, California, to seize underwater home mortgages using eminent domain. He says it “smacks of crony capitalism.” It’s nice to have some company on this one.
(Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter.)