I can't believe you would believe a word that came out of her mouth
An interesting article about the sex trade in the NY financial district.
Some people have no idea what's going on.
living fucking the guys who fucked the American economy." That statement is absolutely right. The not so funny thing is that we are beginning to see the next debacle - what happened with subprime is happening again, this time it is tied to the "shale oil revolution" and all the paper tied to it. Best part of it all is that Wall Street got its way in the Omnibus bill, the American taxpayer is once again on the hook for the derivatives gambles the banksters play.
The amount of unsecured, or under secured debt that the banks are holding is a fraction of the amount they got stuck with when the housing bubble burst.
Oil was only slightly over bought at $100 bbl, and while it's likely that it is going to end up oversold at wherever it bottoms out, only the overleveraged companies are going to default. Will there be defaults? yes, almost certainly, but will the defaults threaten our oil industry, much less the banks that have loaned out money to develop shale plays among other oil development? Most certainly not.
That may be the case now but that is why Jaime Diamond was calling congressmen last week so he could begin to do business the way he did it prior to Dodd Frank. Maxine Waters brought this to the Nation's attention last week.
I can't believe you would believe a word that came out of her mouth
normally you get to say "I have fucked thousands of women over forty years, I know" and here you get to say "I drill oil for a living fucker!" lol!
Technically, nothing threatens the banks. Our government and the FED have made it crystal clear that they will backstop the banks regardless of what they do. They make money, then they get tremendous bonuses. They fuck-up, the American public takes it in the ass in various ways, some of which most of the public does not even understand. Great business model!
You are right, the amounts of money are much smaller but when these chain reactions start, money dries up, margin calls come, counterparties fail, etc. etc., there is no telling how far things go. This is also not just any industry, this is THE crucial industry in our economy, particularly over the past decade, I don't need to tell you that.
Remember LTCM in 1998? The bankers were shitting their pants because they were afraid of what the failure of that single hedge fund would mean in terms of cascading failures. This is not just about banks per se and I sincerely hope that I am wrong, because my lips are firmly planted on the corporate teat. The next year will provide the answer...
The article is pretty spot on. I would like to add that these are overworked, stressed out people who have their dignities taken away at work everyday. Most of the folks described in the article seem to be junior (i.e. below Managing Director) rank who are still trying to survive the competition. Hours at major banks are brutal (80 to 90 hours are norm), and many junior people get washed out / burnt out without seeing or touching real money.
PNL (profit and losses) is above all the main benchmark for success (or failure). Everyone is a profit-making machine - the boss smiles at a good alpha generator like a proud owner smiling at a prized race horse. Given everyone is just a number, many think and act like mercenaries and try to put a price on everything (including themselves and other people).
I hope this gives more context to the articl
It would be interesting to go through the different groups of Sales and Trading vs I banking. I think coke is more predominant in S&T.
Especially the guys that are any good at it. I was with a couple of finance guys down in Colombia a couple of years ago and they seemed almost pissed that they couldn't spend their money fast enough due to the low prices.