Welcome to Bespoke Brunch Reads, our Saturday morning summary of interesting things we’re reading this week. The links are mostly market related, but there will be some other interesting subjects covered as well. The links are in no particular order. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.

Here’s How This $100 Billion Fund Is Bracing for Inflation Wave by Peter Levring (Bloomberg)

While the focus of global financial markets have been on deflation risks and negative interest rates over the past week, some are focused on the possibility that inflation is far from vanquished. [Link]

Everyone Is Bad At This by Urban Carmel (The Fat Pitch)

A helpful reality check that almost everyone in the financial markets views almost everyone else as “dumb money”; being constructive on one’s own process is probably a lot more helpful than shouting at all everyone else, though. Here, here. [Link]

Negative rates as a precursor to the death of banking by Izabella Kaminska (FT Alphaville)

In what can only be described as an extremely prescient post, Kaminska creates a thought experiment on what negative rates might mean for the banking industry. [Link, registration required]

Gravitational Waves Detected, Verifying Part of Albert Einstein’s Theory of General Relativity by Robert Lee Hotz (WSJ)

One of the cornerstones of the father of modern physics’ view on the universe has finally been detected, with big implications for the world of science. [Link, paywall].

These Are the Things That Correlate With the Fed’s ‘Easy Money’ by Julie Verhage and Luke Kawa (Bloomberg)

A simple but interesting exercise: what goes up when the monetary base does? [Link]

Lawmakers Question U.S. Decision to Give Rum Trademark to Cuba by Felecia Schwartz (WSJ)

Do you like rum, copyright law, and geopolitics? Do we ever have a story for you! [Link, paywall]

How Economists Would Fix Online Dating by Christopher Mims (WSJ)

While it may seem like a silly idea to unleash the dismal scientists on the dismal world of online dating, this was still an amusing read. [Link, paywall]

The Thorny Economics of Illegal Immigration by Bob Davis (WSJ)

Probably the best piece we read this week; the author neatly lays out the costs of cracking down on immigration (lower total growth) with the benefits. Those are distributional, that is, some members of society gain advantage due to restrictive immigration, while others lose out as does total growth. [Link, paywall]

Europe’s Battered Banks Are Far From Crisis by Simon Nixon (WSJ)

A simple and concise case against the thesis that the European banking system is sliding into a Lehman-like collapse. [Link]

For AIG’s Hancock, a Dance at the Activists’ Ball by Leslie Scism and Joann S. Lublin (WSJ)

Anecdotes from the board room of a company targeted by activist investors and what they did about it. [Link]

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