" If a banker were ever to come to my house to persuade me to trade, I would understand that the cost of his time and his bonus would have to come out of my winnings (if any). If a banker sat down with me and assured me that the Brazilian real was guaranteed to rise against the Japanese yen, I would ask him why he wasnât simply buying reals, and shorting yen, with his own money. Why would he even be wasting time talking to me if it was such a good deal? " That's true!
You wonder how some of these people made their money when they are so easily suckered out of millions like this. GS is out for GS. These guys will do ANYTHING for their bonus.
So what? If he made 34mil I bet he wouldn't be complaining about it. If you're taking a risk just STFU and deal with the outcome.
+1. It would have been his idea and he would have been a genius. That being said, investment bank traders generally view private bank clients as the rubber ducks in the shooting gallery at the carnival.
These high net worth guys are interesting. They obviously have some sort of edge in whatever business they are in (to make their money in the first place). Then they think they need to get in with IB's like GS or hedge funds in order to "beat the market" or "juice their returns". This guy is worth a minimum of $34m via his tech company and he's trying to make money playing the Real? What a joke. He should read a handful of books on asset allocation and protecting money, and not be concerned with investing in derivatives that have a 90% failure rate. Build a portfolio of stocks, bonds, cash with some RE, gold and commodities sprinkled in for an inflation hedge and call it a night. Rebalance yearly (or whatever frequency) and dabble in start up tech companies if he likes to gamble. At least in that scenario he's the shark and not the meal.
Exactly. He's taking advantage of the "Vampire Squid" publicity. I am sure they forced themselves into his home and held a gun to his head. I am no fan of GS.