From 1 bank to 2 now 4. Interesting to see a 100% perfect run, at this point they should invest everyones 401k, social security, pension and all retirement plans, no one would ever have to work ever again. They are literally printing money on an hourly basis, unfuckingbelievable.
I'd say that this is a result of mark-to-model accounting. If you're a bank making a market that's illiquid and has large spreads then it's very easy to register a profit on every trade that you make. The model that you're using to value the trades would be the same model that you'd use in determining the bid/ask spread. This means that every time a trade occurs between the bank and a counterparty it would immediately register as a profit for the bank. Trading's never been easier...
(1) obviously they are not trading - trading means risk = proftis and losses. this is blatant cheating. (2) what are the odds of the 4 banks prop trading over 61 days and never losing?
Reminds me of the quote: One death is a tragedy. A million deaths is just a statistic. What we have here is a statistic. My first and primitive thought is the problem is not with the banks, we have systemic monetary snafu buried in here somewhere that hasn't raised its head. If the Fed and others aren't outraged then perhpas this anomaly is by design.
These banks are making markets, and doing stuff like arbitraging and making money from the spreads, its not difficult to see why they have managed to be consistently profitable. It might be hard for the average piker to understand this though...
it would be nice to see the split ...brokerage fees/investments... and that fed audit that keeps getting buried...if they were representing the fed and US treasury...bernankes and geitners brokers...then the U S citizen should have cleaned up on their trillion plus investment....i am sure that was their intention all along..to help out their country in these perilous times
Well if you could martingale with the full faith and force of the US treasury and when a hick-up like May 6th occurs have trades busted you would have to be a very bad thief to get caught and not make money. These banks require zero performance bond or margin to trade. They have the full backing of the US Government and are members of the various exchanges and trading venues. Imagine being able to double your bet on red in Vegas 1000 times in a row... You only make profits and never have any skin in the game. Enough of the rant. In Life Money and influence prevail.
My point exactly, this is nothing new but something is different. What is the ineffeciency that 4 banks cashed in on all at the same time, the ineffeciency should be gone immediately.
There will always be inefficiencies in markets. I know this because I am exploiting one right now (its getting harder to exploit it though), and I am not even doing it with super computers. The banksters are masters at trading because they know how to transfer risk to the pikers, being the middleman in any trade involves very little risk.