Howdy Jones,
The magician's stock in trade is " misdirection". As we watch the stock
market "attempt" to correct, stargaze and extrapolate what is taking place
in the market world.. keep your eyes on the "fed rate". A magician uses a
"shill" which is often a skimpy clad girl. Picture the Fed as the shill and
the magician as the banker.
A 1/2 point cut in the fed rate can be manipulated in the banking industry
more ways than one but let's look at a simple event.. one of the major banks
may have loan exposure of 20 times it's capital base. A bank with 200
billion in capital with outstanding loans of 20 times capital is earning
interest on 4 trillion. If they can get a cut of 1/2 % on what they borrow
they have "booked" an increase in profits by the amount of the offset of the
4 trillion loaned out plus pick up a 1/2% on their capital borrowed base..
That ain't bad for the girls I go with.
Richard
Jones wrote,
Kerviel is the so-called "rogue" trader (or scapegoat) who is taking the
heat for the recent French banking scandal ... which is becoming a story
with many far-reaching tentacles- there are whispers of Halliburton, a
secret CIA-Clique (reminiscent of the Star Chamber), the Bin-Laden
option"trades", secret infiltration of the European banking system by
ArAms, and it all may eventually get back to our beloved (and
aptly-named) "Vice" President.
