Despite the running unease in world markets, three giants of American finance managed to make money from trading every single day during the first three months of the year.What really needs to be looked at is how much of these trading profits were made with the Federal Reserve being on the opposite side of the trades.
Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball...But Bank of America, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of a trio of perfect games during the first quarter. Each one finished the period without losing money for even one day.
I think I could have a pretty good year trading, if I could get the Fed to buy all my bad trades near the price I paid for them , if the Fed loaned me money near zero percent and if I traded with the Fed and they weren't too concerned about what price I set the trade at.
These "Brave" bankers conquer risk by forcing the taxpayer to subsidize their operation...one small risk for each taxpayer, one giant gain for each bank.
ReplyDeleteTheir day will come...
ReplyDeleteToo bad this article doesn't provide the reader with the probability of not just one bank having a perfect quarter, but three...
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