Bankers Make Billions From Fed Money Printing As Double-Dip Recession Fears Surge

bankers-make-billions-from-fed-money-printing-as-double-dip-recession-fears-surge

16-07-20 08:07:00,

The Federal Reserve’s stunning effort to keep credit flowing in the system during the virus pandemic and resulting lockdowns have been like striking gold for the biggest US banks, reported Bloomberg.

Capital markets were frozen at the start of the pandemic, but as soon as the Fed set up an unprecedented series of programs to support corporate debt markets and cut interest rates, bankers were able to handsomely profit from trading and arranging debt deals for companies seeking cash. This powered JPMorgan Chase & Co. and Citigroup Inc.’s profitability despite rising loan-loss provisions and even resulted in Goldman Sachs Group Inc. smashing earnings expectations. 

“Goldman’s earnings this quarter were too good — almost indecent, in fact,” said Octavio Marenzi, CEO of capital markets consultancy Opimas. “The Fed has been able to engineer a huge bounce-back in the markets by injecting trillions of dollars, benefiting investment banks primarily. This will lead to calls for the government to do more to help Main Street rather than Wall Street.”

A Fed-induced capital markets boon fueled with newly printed money and bailouts has raised concerns whether the central banks disproportionately helped Wall Street at the expense of small businesses going bust

While the average blue-collar American was forced into food bank lines and given lousy Trump stimulus checks, the fatest cats at Wall Street banks celebrated the Fed’s saving grace, as they collectively reported a $10 billion windfall, thanks to bond trading and debt deals. 

“The $10 billion figure is the gap between the $20.5 billion that the three banks generated from their fixed-income trading and debt underwriting units, and the $10.4 billion average quarter for those businesses over the last four years,” said Bloomberg. 

Citigroup’s investment bankers reported their best quarter in a decade, supported by debt underwriting. JPM traders locked in a massive $7.3 billion gain in fixed-income trading during the second quarter.

h/t Bloomberg 

Goldman said fixed-income trading saw “significantly higher revenues” over the quarter. Goldman CEO David Solomon told analysts Wednesday, “the activity levels that we saw at the end of March and April were really extraordinary.” 

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Bankers ‘playing financial Russian roulette’ until they ‘blow America’s head off’ – RT’s Keiser Report

bankers-‘playing-financial-russian-roulette’-until-they-‘blow-america’s-head-off’-–-rt’s-keiser-report

07-07-20 08:30:00,

Max Keiser and Stacy Herbert discuss the ‘conspiracy theory’ that capital markets are no longer free because the US Federal Reserve and other central banks control everything.

Stacy says that in 2008 the Fed also intervened with quantitative easing and free money for the banks. However, “all those bad debts were concentrated on the banks, it was the financial sector, in particular, that nearly went under and which the Fed rescued.” Since then the risk spread into the credit markets and bond markets, she says, so now most central banks around the world have to take extraordinary measures.

“Jay Powell, other central bankers, Warren Buffett, are effectively playing financial Russian roulette,” says Max. “They have the gun, and in there is one bullet of risk. They spin the chamber, they point it at America’s head and they pull the trigger, hoping that they won’t blow off America’s head and that they get to keep all the free money this day. And they do that every single day. Then eventually, like in 2008, they blow off America’s head, and it will happen again soon.”

For more stories on economy & finance visit RT’s business section

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How To Crush A Bankers’ Dictatorship: A Lesson From 1933

how-to-crush-a-bankers’-dictatorship:-a-lesson-from-1933

13-11-19 09:11:00,

Authored by Matthew Ehret via The Strategic Culture Foundation,

The western media has been hit with warnings of “financial Armageddon” and the need for a “global hegemonic synthetic currency” to replace the collapsing US dollar under a new system of green finance. These statements have been made by former and current Bank of England Governors Mark Carney and Mervyn King respectively and should not be ignored as the world sits atop the largest financial bubble in human history reminiscent of the 1929 bubble that was triggered on black Friday in the USA which unleashed a great depression across Europe and America.

While I’m not arguing that a systemic change is not vital to protect people from the effects of a general meltdown of the $1.2 trillion derivatives bubble sometimes called “the western banking system”, what such central bankers are proposing is a poison more deadly than the disease they promise to cure.

In principle, the world crisis, is no different from the artificially manufactured crises which the world faced in 1923 when unpayable Versailles debts were heaved onto a beaten Germany, which I elaborated upon in my previous report. It is also no different from the nature of the folly that unleashed unbounded speculation during the “roaring 1920s” which led to the bank-run and general meltdown. Similarly, the solutions being proposed to put out the fire by those same arsonists who lit the matches today are identical to what the world faced in 1933 as a “central bankers” solution for the world depression.

How the 1929 Crash was Manufactured

While everyone knows that the 1929 market crash unleashed four years of hell in America which quickly spread across Europe under the great depression, not many people have realized that this was not inevitable, but rather a controlled blowout.

The bubbles of the 1920s were unleashed with the early death of President William Harding in 1923 and grew under the careful guidance of JP Morgan’s President Coolidge and financier Andrew Mellon (Treasury Secretary) who de-regulated the banks, imposed austerity onto the country, and cooked up a scheme for Broker loans allowing speculators to borrow 90% on their stock.

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Central Bankers Go Green… Why?

central-bankers-go-green…-why?

03-10-19 07:43:00,

Authored by Matthew Ehret via The Strategic Culture Foundation,

I was told many depressing things as a child.

Watching World Vision infomercials educating the west to the want and misery suffered by millions of children in the third world, I wasn’t alone in asking adults “why”? When I enjoyed all the comforts of food security, electricity and running water, why were these other children living in poverty? I know that I was not the only bewildered child to receive the shallow response that I did from family and teachers when I was told that this “simply is the way it is”. At best, we privileged few in the 1st world could hope that $1/day would alleviate their pain, but really there was no great solution.

Later in life, as my closest friends found themselves enmeshed in university political science and economic programs, the innocent curiosity that recognized injustice for what it was not only died under the weight of materialist theories of human nature which their parents paid good money to feed them, but upon leaving school, those same friends actually became witting accomplices in that very system which their youthful hearts recognized as wrong so many years earlier. Since humanity was intrinsically selfish and our economic system so immutable, the best we could hope for was success in life and enjoy being on the receiving end of destiny.

Again, I know that I’m not alone in this experience, as tens of millions of citizens took to the streets all around the world on September 27 to march for the earth, repulsed by corrupt consumerism and celebrating the advent of a Green New Deal.

This activation of “people power” driven by such institutions as the Extinction Rebellion, Fridays for the Future and the young Greta Thunberg could never have occurred had not a deep sense of injustice and malaise not already been festering in our collective hearts. That sense of injustice and malaise connects us to our deepest humanity and is a purity which unites each of us in a field of compassion with the whole of which we are but parts, and should be celebrated and protected at all costs.

In spite of that purity something much darker showed its ugly face on September 27 which used that inherent goodness to its dark advantage.

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Bankers, Tech Execs Know The Collapse Of Society Is Coming And Are Feverishly Prepping For It

Bankers, Tech Execs Know The Collapse Of Society Is Coming And Are Feverishly Prepping For It

07-09-18 07:38:00,

Authored by Michael Snyder via The Economic Collapse blog,

While most of the general population has been lulled into a false sense of security, bankers and tech executives are spending millions upon millions of dollars to prepare for the collapse of society.  Do they know something that the rest of us do not?

Apparently talk of doomsday scenarios has become very popular at Silicon Valley dinner parties, and as you will see below, having a plan to escape to New Zealand appears to be a very popular “Plan B” among the tech elite.  Of course this is not just a west coast phenomenon.  Many bankers on the east coast have similar concerns and have also been developing contingency plans.  Ladies and gentlemen, they know what is coming and they are feverishly getting prepared for it.  In fact, J.P. Morgan Chase’s head quant just publicly declared that the next financial crisis is going to result in “social unrest not seen in the U.S. in half a century”.  The following comes from CNBC

Sudden, severe stock sell-offs sparked by lightning-fast machines. Unprecedented actions by central banks to shore up asset prices. Social unrest not seen in the U.S. in half a century.

That’s how J.P. Morgan Chase‘s head quant, Marko Kolanovic, envisions the next financial crisis. The forces that have transformed markets in the last decade, namely the rise of computerized trading and passive investing, are setting up conditions for potentially violent moves once the current bull market ends, according to a report from Kolanovic sent to the bank’s clients on Tuesday. His note is part of a 168-page mega-report, written for the 10th anniversary of the 2008 financial crisis, with perspectives from 48 of the bank’s analysts and economists.

If you visit my website on a regular basis, you already know that I have been warning that rising levels of anger and frustration are rapidly eroding the thin veneer of civilization that we all take for granted on a daily basis.

Back in 1968, the Vietnam war was in full swing, a presidential election was approaching and two of the most prominent leaders in America had just been assassinated. 

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