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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (131)	3/21/1998 7:32:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

Why the new economy discourages banks to do commodity tradings? Japanese and Korean banks have kicked the bucket or bite the bullet trying to make quick and big gains trading commodities. They did not understand where the gains are coming from. Another bank? Another country which has a lot of money to pay them? Asian flu? Just caused by naive and stupid gamblers. J.P. Morgan was always a bank of risky nature. Back in the old days, everybody invested in their stock, did not gain much. Neither did I. The on going risk of losing money in the commodities field make the bank a very apparent unsafe investment. Now they are for sale. Went into the silver business against another rubber baron and came out second best. Selling or buying silver but never owned a single oz. The trade might tell you silver moved in or out of warehouses; but the only thing they have to show is a virtual warehouse in the form of contracts. Contracts sometimes with no money held by a third party to guarantee payments. Chicago board of trade in the past tried to settle a big payment instead of paying on potato contracts where the farmers in Idaho made a big killing of maybe $10 million. One farmer lived to tell it in a book. He is the majority owner of Micron Technology now. FEDs have to guide them to put the money in treasury bills and bonds; FDIC has to forbid them from risking depositors' money. This country has no use for gamblers handling depositors' money. Laws should be written to safe guard our banks.