Seeking Alpha

Felix Salmon submits: Most hedge funds had a hard time in July, losing twice as much money, on average, as someone invested in the S&P 500. It seems that a lot of people were rushing in to the short-financials trade, and got massively squeezed. At the same time, however, Jim Simons's Medallion fund was up 7% in July and up 48% in the first seven months of the year -- and that's after taking out its fees 5-and-44.

David Merkel submits: I appreciated Steve Waldman’s article at his excellent blog Interfluidity, which was also posted at Naked Capitalism.  I have a slightly different take on the topic, which I expressed in the comments section of each blog: Steve, I think we had two, maybe three things go on here. First, the “originate to sell” model failed because basic underwriting was not done well. The incentives against failure were not left with the originator, i.e., having to hold onto a large equity piece.

Hickey and Walters (Bespoke) submit:
Two days ago we posted on the recent breakout for the US Dollar and its positive implications.  Today the Dollar is having its best day since July 2005 with a gain of 1.167%.  As shown in the charts of the Dollar index and the Euro below, the trend sure looks to be in the Dollar's favor for the time being. click to enlarge

Phil Davis submits: Wow, what happened yesterday?

John Jansen submits: Prices of Treasury coupon securities are modestly lower in overseas trading as some professional profit taking emerged after the sharp price gains of yesterday. Some of those gains sprang from fear and while equity markets are not exactly ebullient there is a modicum of stability and that drained some of the enthusiasm from the Treasury market.The yield on the benchmark 2 year note has climbed 2 basis points to 2.45 percent. The yield on the 5 year note has gained 3 basis points and rests at 3.17 percent. The yield on the benchmark 10 year note has registered a 2 basis point increase to 3.94 percent. The yield on the Long Bond has moved higher by 2 basis points and the instrument yields 4.58 percent.

Felix Salmon submits: If ever there was a need for gag orders on former central bank chairmen, it is now. Actually, scrap that: if ever there was a need for a gag order on Alan Greenspan, it is now. The rest of them have all acquitted themselves quite admirably; Greenspan, alone, seems determined to kvetch and second-guess and generally be an unhelpful nuisance to his successor.

J. Christoph Amberger submits: Vanguard, one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services, has reopened its Vanguard Explorer Fund and Vanguard Health Care Fund to new shareholder accounts. Both had been closed in February 2006 and March 2005, respectively. "We believe that the funds can accommodate additional assets at this time, given their current size and cash flow levels," said Vanguard Chairman and CEO Jack Brennan.

Michael Shedlock submits: Minyanville Professor Bennet Sedacca posted a stunning chart Thursday morning on continuing unemployment claims. Here it is.Continuing Jobless Claims Complete Story »

Michael Shedlock submits: Bloomberg is reporting Euro Slumps to Five-Month Low on Reduced Bets for Higher Rates.The euro slumped to a five-month low against the dollar as traders pared bets that the European Central Bank will raise interest rates due to a slowing economy.