Quote:
Originally Posted by teomaxxx
GS just posted outstanding ER today. They made money most money as follows :
* betting on oil
* underwriting fees for under-capitalized banks
* reduced taxes
while GS is not BK candidate , I bet every other IB is trying to do the same, betting on commodities, since in current market its one of the last places where money can be made.
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According to Cooper the responsible ones that used to trade in the futures market have been driven out...for the most part...because since deregulation it has become a wild man's market with more and more players...basically a casino/gambling type market (it always was to some extent) and yes they are making money head over heel. Put up 5% cash...with no required reserve and go for the ride. Of course their will be a time when the house of cards falls but when...$200 per barrel $300 per barrel...who knows. In the meantime they will be making a great return on their 5% cash investment and since their is no required reserve to meet a margin call...when the house of cards falls...I really do not see how they can be hurt very much. They of course are damaging the economy and hurting the little man's wallet. I don't know why in the hell commodities trading was ever deregulated.