The Marks Always Lose 1
The house always wins in three card monte:
Bank of America Corp. and Morgan Stanley are encouraging clients to buy swaps that pay higher yields for speculating on the extent of losses in corporate defaults. Trading in credit- default swap indexes rose in the fourth quarter for the first time since 2008, according to Depository Trust & Clearing Corp. data. Federal Reserve data show leverage, or borrowed money, is rising in capital markets.
Aside: Read this. Read it all the way to the end.
January 27, 2010 at 4:56 pm
Well, there was no penalty the last time they played with these things. They made lots of money & the only people who took the hit didn’t matter. Taxpayers aren’t investors. Or employees.