LEGALIZED THEFT AND DISPICABLE!

Submitted by: Donald Hank

Bank Stealing Increases

Bank Revenues Surge on Trading Over What Fed Will Do

Diverging monetary policies are creating ideal conditions for banks to make money from trading currencies as Credit Suisse Group AG (CSGN) to Goldman Sachs (GS) Group Inc. say rising volatility is boosting earnings.

“If there’s higher volatility, there’s higher volume and higher opportunities for us to generate revenue,” Bernie Sinniah, the London-based global head of corporate foreign-exchange sales at Citigroup Inc. (C), the second-biggest currency trader, said in a phone interview.

How does a bank “generate revenue” from such activities?

Remember that trading is inherently a negative-sum game.  That is, due to the fees and costs not only does someone lose for everyone who gains the total amount left between the two participants in the trade is less than the sum of what the two started with as the exchanges and other intermediaries all siphon off a piece of the action for themselves.

At its core all this activity is non-productive; it is effectively stealing from the productive part of the economy.

Oh sure, it’s legal stealing, but make no mistake — every dollar of this “revenue” is a dollar that used to belong to someone else and now it doesn’t.  In addition the fees and costs are siphoned off and those are also removed from the original owner.

There is no “there” there.  And there is no net economic activity that accrues as a consequence of this activity either.  At best it’s a push (the banksters have some funds and spend them, but the other person does not and thus does not spend them.)

There’s no “benefit” here folks.

Quite to the contrary.

Donald Hank Comments:

Anyone who accuses a middle class person of envy for being angry at the banksters and their cronies in government who completely destroyed our capitalist system is himself guilty at least of insensitivity but most likely of hard hearted selfishness as well. And if that person has profited from corporate cronyism, then he is guilty of a crime.

There is absolutely no difference between defending the corporatism (cronyism) that has been stealthily substituted for capitalism -- and is destroying the middle class -- and saying 'let them eat cake.' If the middle class ever regains its rightful state in our country, woe unto the ones who profited from our pain!

We won't soon forget.

Don Hank