Mbuna

Are Banks Being Naughty Again with Derivatives? Could Be Good

Let me get to the core issue here. In every argument and dissertation I have read in support of derivatives there are 2 aspects of the arguments that are present in every single case, sometimes explicit and sometimes implicit. The first of these is the absolute fact that the fundamental reason for the creation of derivatives was so that financial institutions could bypass their capital requirements to gain greater leverage. There are other "beneficial" reasons for the creation of derivatives but they are not the fundamental ones. Those who write in support of derivatives will often mention this aspect but always as a secondary matter to the hedging or insurance aspect of derivatives. This brings us to the second matter that I have never failed to find among those who support derivatives. Not only are they in denial of the fundamental reason for the creation of derivatives but they show all the classic signs of addiction, the signs that they should be in a 12 step program or some other kind of rehab. This is why I call derivatives "financial crack" and those who support derivatives "financial crack addicts". These people will happily warp reality to fit their "modus operandi" but the fact of the matter is you have trillions of dollars hanging on financial engineering whose primary purpose was to skirt regulations in order to gain greater leverage. Fools are born at a far greater rate than every minute

High Frequency Trading: We Fear What We Do Not Understand

Poker players are amongst the best bald faced liars and Kid Dynamite is no exception here. Let's start with a clearly bald faced lie at the end of his article "Full disclosure: no agenda here: ..." What utter bullshit. Now if you didn't have an agenda then why did you even bother to publish this article. You have quite an agenda going here to the point that I wonder who paid you for this neat little piece of Wall St. corporate schilling. I can see from previous articles that you are in support of Goldman Sachs (check his limbs for tentacles!)

Let's take a further look at what interests Kid Dynamite- "This is the main reason I'm against most attacks on high frequency trading. SOMEONE will always be the best - the fastest - the closest - ...", "I like competition in markets." Kid is a big poker fan, traded for a hedge fund, and demonstrates the kind of narcissistic attitude that has become all to common on Wall St. these days.
Clearly the game is what matters to him and nothing else. Now picture all those firms on Wall St. filled with these types of characters, happily gaming the system to the brink of its destruction and what do you have? The recent financial history of Wall St. is what you have. Kid Dynamite along with his Wall St. brethren (and squid friends) do not have the human maturity necessary to responsibly play the games they wish to play. They need to be collared, period.

Exclusive: Big Banks' Recent Profitability Due to AIG Scam?

Ahh yes those banks know exactly what they are doing, right? H/T Naked Capitalsim, from FT Alphaville-

"US commercial banks lost $9.2bn on derivatives trades in Q4 08"

Have a read.
ftalphaville.ft.com/bl.../

What Else Are the Banks Hiding?

Nonsense! Please tell me why banks have to hide those losses in the first place. Dishonesty and deceit are supposed to be how banks conduct business? Yeah just look at those quarterly reports- we are supposed believe that rubbish? I'm supposed to believe the major banks are forthright? Are you out of your mind? They are HIDING LOSSES. Just listen to what all the CEO's have said about their banks over the course of the last and compare it to what actually happened. Go back over the quarterly reports over the last year- the lies and dishonesty are there for everyone to see vis a vis what has actually transpired since then. You apparently think banks are supposed to be gambling casinos. Las Vegas East, better known as Wall St. needs to be regulated back into reality.


On Mar 26 10:44 PM MattZN wrote:

> The media tends to focus only on the negative aspects of the banks.
> They don't seem to be able to spend even 10 minutes reading a 10-K,
> so most people never hear about the positive aspects., etc.
>
>

Congress: Shortsighted About Financials

An important rule with Congress-
When it comes to money and government politics always comes first.
When it comes to money and the member of Congress money always comes first.

Added Debt Won't Rescue the Great American Ponzi Scheme

Amen brother amen! The pain cannot be escaped. You can pay it now or pay it later. Guess which one will hurt more. I feel we are headed for a train wreck but may Grace and wisdom intervene for a more benign scenario.
(I especially liked the graph of deposits in failed banks as a % of nominal GDP.)

The Economy on Dope: Investors Fear Inflation, Embrace Gold

Kudos, nice article! I am almost shocked to find someone who generally thinks like I do about this situation. Except I can't imagine this continuing unabated for 10 years- things move much too fast now and I fear the wheels are coming off.

We Cannot Afford to Wait to Recapitalize U.S. Banks

Few recognize the political clout that the Wall St. "psyche" has right now. It is actively extorting trillions of dollars from the taxpayers. It controls the Fed and the Treasury. Geithner is creature of this "psyche" and he is blinded by his own knowledge to the detriment of the greater good for all. The government cannot act on the banks because the pervasive underlying psyche dictates that Wall St. must be protected at all costs-better to bankrupt the entire country than bankrupt the financial system. Many would argue that they are one and the same and this is the big delusional moment we are at, to our detriment. As the financial Wall St. vampire drains its victim how much blood will be lost before the government can come to its senses? Right now the vampire has control, to be sure.

Two Fed Graybeards Speak Out

The end effect of all these super banks and acquisitions has at this point in time been shown to effectively benefit corporate executives and financiers ONLY. Fundamentally it is the rich getting richer and they have no intention of letting go easily. The Wall St. psyche has effectively infiltrated the previous and current administrations and that is why no effective action has been taken. Wall St. is extorting trillions of taxpayer dollars with government complicity. Few are willing to recognize the political power that Wall St. has accumulated over the last 8 years but we are seeing in spades right now. They have control of the Fed and the Treasury and I fear it will take a long time to purify the delusion that what is best for Wall St. is best for the country.

Let's Get Real About Bear Stearns

Bah! The executives at Bear Stearns are rewarded for their dishonesty and recklessness by getting to keep all their earnings and bonuses instead of having to hire defense attorneys as they should have. This article is typical one sided BS that conveniently omits facts in order to bolster it's argument. The real point of this article is that the law should not apply to Wall St. executives and that they are supposed to be free of responsibility for their actions.