Wall Street Coming Back From the Dead
Wall Street is in the middle of a huge re-structuring. The guys that previousley could afford to drive Ferrari’s by being nothing but middle men between super star basemant hedge fund traders and UBS are as of last week wondering what the hell to do. Obama said Thursday that he had a plan to stop commercial banks and institutions that own banks from “owning, investing in or sponsoring” private equity and hedge funds, and also wants to cap trading activities done for in-house accounts.
So apparently the in-house trading team will have to adhere to a whole different set of standards when they need to dump all of their S&P futures positions at the end of the month. But suspiciously the over the counter market continues to thrive and is still being sold as an asset class. Not that I would ever watch CNBC, but while wondering why the LCD in the gym was showing the market crashing they had none other than Rick Santelli in Chicago with a caption at the bottom saying “Are exchange traded derivatives to blame for today’s crash” ? Yep the famous weapon of mass financial mass destruction is still going strong. Obama say’s nothing. Well we shall see you rises out of these ashes, but so far it looks like nothing but a quick to re-do to the past.
