Stock market news today August 16

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The legendary investor who predicted the past 2 bubbles
breaks down how the 9-year bull market will end

In late 2017, the investing legend Jeremy
Grantham was officially on bubble watch.

He said as much in a quarterly
letter he coauthored for his firm,
Grantham, Mayo, & van Otterloo (GMO),
back in December. It wasn’t an extremely pressing concern quite
yet but something in the back of his mind.

That all changed in January when, as he describes it, stories of
investor overconfidence became too numerous to ignore.

Grantham’s favorite anecdote came courtesy of the bus one of his
Boston-based colleagues would take to work from New Hampshire.
Every morning, an elderly woman would see the GMO employee
reading financial literature and ask questions.

A former Tesla engineer says the company silenced her
entire team after they brought up safety and quality
issues

In early August, a former Tesla process
technician, Martin
Tripp, countersued the company.

Tripp claims that Tesla, which filed a lawsuit against him in
June, falsely accused him of hacking into the company’s operating
system. He also alleges Tesla waged a smear campaign against him
in order to silence his claims of poor part quality and waste at
the company.

For another former Tesla employee, Cristina Balan, Tripp’s story
feels familiar.

Balan began working for Tesla as an engineer in 2010.
In a series of interviews with Business Insider, Balan said she
was pushed out of Tesla four years later.

Turkey’s turmoil blew a $19 million hole in one trader’s
account — here are the winners and losers from the
crisis

Markets have been gripped by the developing crisis in
Turkey over the last few weeks.

The country’s currency plummet, contagion spread to other
emerging markets, and a war of words broke out between President
Erdogan and President Trump.

Traders love a crisis. A crisis tends to create volatility, which
creates the opportunity to make larger sums of money by betting
on price moves. The reverse, of course, is also true: losses tend
to be greater in times of volatility.

It’s no different with the Turkey situation,
with several media reports of large financial institutions making
and losing large sums of money.

Emails show RBS bankers joked about destroying the US
housing market before 2008

Royal Bank of Scotland (RBS) bankers
joked about destroying the US housing market and senior staff
described the loans they were trading as “total f*****
garbage,” according to transcripts released by the US Department
of Justice.

Email and call transcripts in a DOJ
report released on August 10 as part of a
$4.9 billion settlement with RBS show the bank’s chief credit
officer in the US said the loans they were selling were “all
disguised to, you know, look okay kind of … in a data file.”

He went on to say that the products being sold were “total
f****** garbage” loans with “fraud [that] was so rampant … [and] all random.”

The US Department of Justice criticized the bank for its conduct
and trade in residential mortgage-backed securities (RMBS), which
played a central role in the crisis.

In markets news