“In poor countries, officials receive explicit bribes; in D.C. they get the sophisticated, implicit, unspoken promise to work for large corporations.”
Nassim Taleb, The Bed of Procrustes
Trading was quiet in New York today as a number of traders were off today for the Jewish holiday of Rosh Hashana.
Despite the lack of substantive follow up on the Deutsche Bank settlement rumours banks managed to bounce back a bit.
The markets were also cheered by 'better than expected' auto sales. Better than the Wall Street analysts estimated that is, but year-over-year decline.
Non-farm payrolls and the Fed will likely dominate the trade this week, with any of the several floating crisis points like Deutsche Bank shuffled to the 'Mispriced Risks' bin.
Interestingly, an analyst from JPM has endorsed the idea that the Fed should start buying stocks to prop up the equity market.
Have a pleasant evening.