Elsewhere on Tuesday,
During the town hall, Mackey repeatedly compared the deal with Amazon to a romantic relationship. At the meetup in Seattle six weeks ago, the executives spoke with Amazon for 2 1/2 hours, Mackey said.
“We could have talked for 10 hours,” he said. “We just had these big grins on our faces, like, ‘These guys are amazing.’”
He said the two companies are now “engaged,” but still need to wait until the transaction gets regulatory approval and is made official. It’s expected to be completed in the second half of the year.
“Like an old traditional marriage, where there are all kinds of rules and chaperones, we can’t consummate the marriage until we’re officially hooked up,” he said. “This is not a Tinder relationship.”
– The London Whale guy would like to have a few hundred thousand words with Jamie Dimon.
– Duncan Weldon on globalisation, inflation & political choices.
– Where are the empty homes in Kensington?
– Rigged, a longread on what can be described as a form of indentured servitude:
A yearlong investigation by the USA TODAY Network found that port trucking companies in southern California have spent the past decade forcing drivers to finance their own trucks by taking on debt they could not afford. Companies then used that debt as leverage to extract forced labor and trap drivers in jobs that left them destitute.
– Cecchetti and Schoenholtz on the US Treasury’s missed opportunity.
– Samuel Buell on “the inability of conventional theories of criminal liability to easily, or even under strain, satisfy urges to deter or inflict retribution on corporate managers.”
Everyone reckons the anonymous bidder who paid $2.7m for lunch with Warren Buffett this week must be rich. In fact the tab makes sense for regular Joes, too. Take the average US worker: 42 years old with a pension pot of $92,500 earning seven per cent annually. Even with no more contributions those savings will be worth $284,000 in real terms by the retirement age of 65. But when, over dessert, Warren whispers the secret to Berkshire Hathaway’s 19 per cent annualised return since inception, the expected pot becomes $3.8m. Hence the average American should be willing to pay $3.5m for the lunch – more than last year’s record amount – minus any real borrowing costs to fund the bid. And if someone with just $92,500 to invest should spend that much, every billionaire hedgie who has dined with Warren has underpaid.
– An IMF chart of the week: FDI in financial centers.
– How traditional equity valuation methods come short in crypto.
– Conspicuous consumption is over. It’s all about intangibles now
– Further, further reading.