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Strategies & Market Trends : John Pitera's Market Laboratory
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To: Augustus Gloop who wrote (13182)6/7/2012 2:01:32 PM
From: Hawkmoon  Read Replies (3) of 33421
 
Here's a question for the thread.. Aside from collecting interest on debt holdings (private and governmental), how can a bank make money in order to restore it's balance sheets?

Proprietary trading in various markets, of course.. And since the most lucrative part of such trading involves extreme volatility, isn't it only natural that the Fed may actually wish to induce such volatility in the markets that permit the TBTF banks to rake in excessive premiums and profits?

So maybe, just maybe, the Fed's intent is to introduce some extreme volatility into the markets in order to their preferred TBTF banks (which control most of the market making activities already) the opportunity to rake in some extra cash..

Just my conspiracy thinking.. I'll put my "tin hat" back on now..

Hawk
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