Apple Sapphire Supplier Breaks

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.. obvious lesson is a dumb one.

GTAT’s contract with Apple is, by most reasonable standards, terrible. GTAT is obligated to produce a minimum amount of sapphire for Apple (at an Apple factory), but Apple is under no obligation to buy any — and GTAT has exclusivity obligations, so it might not even be allowed to sell to anyone else.

via Apple Sapphire Supplier Breaks – Bloomberg View.

Germany’s Insistence on Austerity Meets With Revolt in the Eurozone

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“Europe’s disastrous response to the crisis — austerity — has led Europe to a social crisis and to within sight of a political crisis”

via Germany’s Insistence on Austerity Meets With Revolt in the Eurozone – NYTimes.com.

Are the JPMorgan Hackers Just Hiding? | Bloomberg View


In the specific case of JPMorgan, the bank thinks it was infiltrated in June.

By the time the breach was discovered in July, it was clear that hackers had “obtained the highest level of administrative privilege to dozens of the bank’s computer servers,” the New York Times notes in its very thorough account of the breach.

via Are the JPMorgan Hackers Just Hiding? – Bloomberg View.

Traders Wipe $1 Trillion From Default Swaps Before Overhaul | Bloomberg

Traders are closing positions as they prepare to buy contracts governed by updated rules that take effect on Oct. 6, when benchmark indexes roll into new series.

The overhaul seeks to fix flaws in sovereign and bank swaps that prevented some insurance contracts from paying out as intended since the financial crisis.

via Traders Wipe $1 Trillion From Default Swaps Before Overhaul – Bloomberg.

Auto Loans: A Subprime Market Grows in the Shadows | Businessweek


Six years later, investors are snapping up a new crop of subprime bonds, this one backed by auto loans. Ratings companies are awarding the bonds top grades, and buyers have almost no way to determine the accuracy of the information they get about them.

“Investors are basically taking the issuer’s word that they follow certain procedures”

via Auto Loans: A Subprime Market Grows in the Shadows – Businessweek.

Ruble Drop to Record Raises Specter of Russian Capital Controls | Bloomberg

Reimposing restrictions on the flow of money that were abandoned eight years ago threatens to worsen a selloff in Russian assets that has gained momentum as the U.S. and European Union expanded sanctions over the conflict in Ukraine.

The ruble slid 14 percent versus the dollar this quarter, breaking record lows in the past three days.

via Ruble Drop to Record Raises Specter of Russian Capital Controls – Bloomberg.

Putin Reserve Rubles Vanish in Crimea Grab | Bloomberg


In the contest to reshape the world’s economic order after the 2008 financial crisis, Russia and China are headed in opposite directions.

China is carrying out most sweeping economic changes in more than three decades by opening up capital markets, expanding trade links and setting up overseas hubs to make the yuan a store of value.

Putin is more interested in territorial expansion.

via Putin Reserve Rubles Vanish in Crimea Grab  – Bloomberg.

Revisiting the Lehman Brothers Bailout That Never Was | NYTimes.com


Today, long after the bailouts, the debate rages over the Fed’s authority to bail out failing firms.

Some Fed officials worry that when the next financial crisis comes, the Fed will have less power to shield the financial system from the failure of a single large bank.

After the Lehman debacle, Congress curbed the Fed’s ability to rescue a bank in trouble.

via Revisiting the Lehman Brothers Bailout That Never Was – NYTimes.com.