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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (13183)	6/7/2012 2:33:27 PM
From: Augustus Gloop	Read Replies (2) \| Respond to of 33421

Never thought of that. The problem is someone has to lose under that scenario so how becomes the sacrificial lamb?

To: Hawkmoon who wrote (13183)	6/7/2012 11:46:55 PM
From: Elroy	Read Replies (1) \| Respond to of 33421

Aside from collecting interest on debt holdings (private and governmental), how can a bank make money in order to restore it's balance sheets? Commissions on trades executed by the bank for its clients Service charges levied on its customers Fees charged for investment banking services Sell a few branches! That's what comes to mind... Proprietary trading in various markets, of course.. I don't think this is a likely option for a bank with a weak balance sheet. If the balance sheet is weak, the bank is likely to reduce proprietary trading, not increase it. And since the most lucrative part of such trading involves extreme volatility Also not true. Volatility doesn't make prop trading more profitable. You're assuming for some reason that the bank would more often than not be on the right side of the volatile position. There's no reason to believe that to be true.

To: Hawkmoon who wrote (13183)	6/12/2012 5:05:09 AM
From: John Pitera	1 Recommendation Read Replies (2) \| Respond to of 33421

hi Hawh, the fundamental way that banks make money is by having a steep yield curve where you can borrow money low at 1% and lend at 5 years at 4% and lend for at 10 years at 7%. Big banks have funding desks that aquire money in the short term and pass it along for the banks to make longer terms loans or buy longer term bills and bonds. And thus the bank makes a positive yield differential. these times are trying those markets and is a large part of why the credit markets are dysfunctional. The volatility is out there without the FED although..... I am not attending the Bilderburger meetings......and I was quite impressed that the Rockefeller home office .... set up in 1882 .. the first in the US... that is still around and has grown massively. ( read Ron Chernow's book Titan) and you will find that the Standard Oil Company set up foundations, trusts , and mystifying financial structures prior 1907 anti-trust suite brought by Teddy Roosevelt to bust the trusts........judge Kennesaw Mountain Landis was the judge....... The Federal Income tax did not materialize until Dec 23th 1913...... and was approved by 5% of congress. take your government back if you dare..... or are stupid enough to try. HR. 439 I believe is the house resolution to be voted on in July to have an independent audit of the FED..... but face it we are the sheep......... ok building on to the next major point...... but my KEY point is that they have sold interests to the Rothschild Home offices and Billions or Trillions and that the Rockefeller home office had sold a share to the Rothschild's empire. Anyone brave enough to publish more info on that transaction get mega bonus points for the finalist round. John