Tuesday, April 27, 2010

Listening to Questioning by Senator Susan Collins (R-ME)....

of Goldman mortgage security brokers.

It's clear that Collins has no understanding as to the difference between a market maker and an investment advisor. She keeps wanting the Goldman brokers to answer a question as to whether they are operating in the best interest of their clients, as though they were investment advisers.

As market makers, they will go long or short a position for a client regardless of the market makers personal view on the direction of a market. For example, if you want to buy gold, but your broker is negative on gold, he is completing his service if he buys the gold for you. You wouldn't want him to short gold on your behalf, if you wanted to be long--even if he was bearish on gold.. Put Collins in the clueless category.

1 comment:

  1. Claire McCaskill just said she bets on college sports, which is illegal in her state of Missouri. Somebody arrest these criminally stupid people.