I would prefer a hostile take over of GS and thereafter splitting their business units and preparing them for separate IPO´s....
Your baseball player salary example makes no sense in this context. Neither does comparing Harrah's to Goldman Sachs. There is no question that GS has an "edge". Having an edge is fine; inevitable even. But when that edge becomes so great that YOU NEVER LOSE, one would have to conclude some form of corruption. Especially given the fact that there are laws and regulations in place supposedly to limit this type of statistical "edge".
the charts are labeled "Summary of Trading Performance" Am I missing something? Oanda is a market maker - that is to say that any trade I place with Oanda does not go out into the currency world. It sits on Oanda's system. They hedge net exposure on the currency market. I'm sure if we look at how much money Oanda makes, it would show similar stats. But if we look at how much money their "TRADING" did, we would not.
GS is the house, and the house always wins. Though Vegas casinos have gone out of business without being backstopped by the gov't, so there is that difference.
You seem to have far more time on your hands than I do, search for it, its not that hard. Lewis complained about this relationship BoA did not enjoy.
The problem is that the lottery is 100% gambling. You can easily scale in and out of a swing trade for profits the majority of the time. Getting $0.30 on T is not even close to the same as getting 6 numbers in a drawing with a drum of numbered balls.
Link to Lewis complaining about his competition doing better then he did. Oh wait, GS didn't make sub-prime loans, they just traded the derivatives. =) It's not that I have time on my hands, it's that I know where to quickly get this info because it's all been in the news recently.(past 5 years)
I have to admit that I have not yet looked at your link but, have you had a position stopped out 6 points below what was market by a second ago by a 15,000 contract market sell order, then an immediate buy after the stops were popped only to see the market resume it's direction upwards? Now who trades in ES blocks that size???? 1. Are you seriously comparing the legit money that could be made on market making activities 30 years ago, when the spreads were greater and before decimalization to TODAY? 2. Goldman has been at this, like this a long long time. Go read about their activities before, during and after the stock market crash of 29. There is not any evidence that they just started this crap, just that they are now subsidized to do it in a much bigger way today.
He was complaining about not enjoying the same access to Geithner that the CEO of other banks did. Surprisingly those other banks seemed to do just a little better than everyone else on the street. No doubt an innocent coincidence. By the way, have any interest in some prime Florida real estate KK? I can hook you up
I'm not disputing anything you stated - of course there is a disconnect between large players and the retail guys. My underlying point is that retail can still make tons of money and that trading styles need to take the manipulation into account. Don't want to get stopped out? Don't use stops with your broker. I don't use stops at all because of the spikes on the ECNs that will trigger them. If I want an automated stop I put it in my code and add conditions; one I use is for the stop to be triggered there needs to be x number of prints greater than a particular lot size. Not all market rules are printed in a handbook or SEC regulations; more than ever they cost tuition to learn.