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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (2185)3/25/2019 1:06:45 PM
From: Elroy Jetson1 Recommendation

Recommended By
Cogito Ergo Sum

  Read Replies (1) | Respond to of 13780
 
The four major trading banks have all been highlighting their huge decline in trading volumes.
.

Pammy Martins completely missed this until she read the recent OCC report. How is this even possible? Perhaps she lives on the Moon?

Decline of big bank bond-trading - axios.com - January 18, 1019

J.P. Morgan's fixed income trading desk had the worst quarter since 2008.
Citi's bond-trading revenue hit a 7-year low.
Goldman Sachs' bond trading business slumped 18%.
Morgan Stanley fared the worst: its fixed income business plunged 30% from a year earlier.

JP Morgan says first-quarter trading revenue to drop significantly - cnbc.com

Deutsche Bank Vows to Reverse Revenue Slump - bloomberg.com

Deutsche Bank’s Prized Hedge Fund Unit in Downward Spiral - bloomberg.com - The slump was a major contributor to Deutsche Bank’s loss of about $750 million in its equity trading division last year

Citi is expecting trading to fall in the 'high single-digits' in the first quarter - businessinsider.com

Goldman Sachs further shrinks commodities trading - kitco.com



To: ggersh who wrote (2185)3/25/2019 2:54:27 PM
From: elmatador  Read Replies (2) | Respond to of 13780
 
It all can be traced back to where it started in 2009

Unwinding is the name of the thread

Bernanke panicked and the rest of the world followed suit.

Stimulus and Quantitative Easing that were supposed to be temporary and reverted back to the old normal

It didn't happen. The world economy got used to CBs. It was like a drug. The world economy got addicted to it.

The US at least tried to go to rehab. The Japanese, European and the Chinese didn't even try to kick the habit.

The misallocation of capital has been big.

If the unwinding did away with the Chinese Decade creations:
  1. commodities exporting countries gone crazy
  2. overspending and
  3. fed rampant corruption.

The unwinding, in the other hand, created other misalocations of capital

  1. Big Tech hyper growth that demolished established businesses because they had the easy money to do so
  2. Musk sending his car into space
  3. Tests of spacecraft for space tourism and
  4. Trip to Mars
  5. People loading up with debt
  6. And alst but not the least the uber misallocator China with its Belt and Road and building artificial islands to claim the sea around them