I have blogged before about the role “unproductive” trades are playing in the current stock market boom.
The FT today reports Goldman Sachs only posted one day’s trading loss in the past quarter – the quarter before saw two such days.
On 35 of the 65 days of trading in the last quarter the company made over $100 profits a day. Goldmans’ profit in the last quarter totalled $6 billion.
The surge in stock market trading is credited to the vast amounts of public money being injected into the world economy by governments trying to get bank credit flowing again. But as I reported on Monday, Lord Myners, the City Minister states that 70 per cent of all trading involves the holding of trades for nano seconds.
I commend today’s FT article.
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As a small private investor its scary to know that trades are held for nanoseconds. Public money injected into the stock markets is not getting the bank credit flowing as yet. The banks are more interested in building their balance sheets.
I was just blogging on Goldman Sachs, and as frequently happens, half way through blog, computer switched off for reconfiguiring.
Link to FT article has been blocked , but nevertheless I will trust your judgement .
The interdepedence of public money and injection into world economies, by the fact that is agitating the global pots, is by implication, bound to get things moving, however as it spins who gets the centrifugal artefacts.?,
Margaret: it’s easy to get paranoid.The re-configuring thing is annoying – that;s all.
We here in Berlin have seen that House prices are once again on the rise, I can see a Country that gave World Darwin, Brunel, Stevenson you had better switch off your TV cuz it killing your Imagination & Commonsense too, there isnt any money in the pot to get the place through what can be clearly seen as another crash coming. Oh & this I know is contradictory, but turn them back on for Channel 4 News then you will see John say what a success turning them off has been to Britain.
$6 billion in three months? Is that all?
I’m quite sure that money would help in the building of infrastructure for clean and disease free drinking water in drought ridden Africa. That’s the continent us westerners destroyed, almost completely sucked dry of its natural resources and then left for the natives to starve and die of thirst. Water being that liquidy stuff we all take for granted…
adzmundo CND
Seriously John,you and Myners are barking up the wrong tree here,and with respect I think it’s simply because you don’t understand the mechanics.How long you hold a trade for or how often you trade is irrelevant,although Exchanges undoubtedly enjoy the transaction fees and day traders misguidely appreciate the liquidity ! Goldmans et al,just like Warren Buffet, don’t make a mint by “trading every nano-second”.They make money because they fundamentally understand what they are doing and are prepared to bet on it.Sadly the UK Govt likely does’nt really know what it is doing,which is why the odds that Myners keeps moaning and that Goldman’s keeps minting remain a certainty.There is simply soo much tosh written on this emotive subject,but any sensible person should as Warren Buffet said,”Let blockheads read what blockheads wrote ” and if you really want to make money,consider another one of his saying’s,”Look at market fluctuations as your friend rather than your enemy;profit from folly rather than participate in it” – good luck,and don’t get distracted by the noise – Goldman’s does’nt !
The government has failed the country at enormous cost.By saving the banks with public money they have sent a message saying , you do what you want ,for unlike other industries we will not let you fail.They should have let Northern Rock and HBOS go to the wall just compensating those citizens who would have lost out.
The banks fatuuous argument that if they dont pay huge bonuses staff will move elsewhere, to where? there are only so many jobs
While governments continue to print funny money the little boys in the city will be quite happy to play with it!. It is a game Jon but sadly it is our money they are gambling with. It is high time you held these people to account on your news or are you secretly on their side?.
You used to have Liam Halligan on your news who speaks a lot of sense but something tells me you did not like his message or someone in authority didn’t!.
A lot of money is being made at the moment but sadly the tax payer will see non of it the boys in pin stripes will be the only winners and the not so bright Where has all the money gone Brown will be done up like a kipper!.
Since when did a degree in history and a sheltered childhood qualify you to talk about economics least of all tell a man like Mervin King what to do. Ever heard the saying teaching your grandmother to suck eggs Jon! well that rule applies to Brown he should listen to his betters that is what they get paid for.
I agree 100%- forget the button money of the politicins exs con – and get onto the big Boys – we IMO are being robbed . If I rob a bank – I go to jail – If a Bank Robs me – they go to the Bahamas for a holiday .
Not paranoia Mr Dicks , just darn annoying,
the configuaration gremlin just struck again
Mr Dicks the psychic psychiatrist , diagnosing problems, from afar , projecting his own mentality .. take care not to offend please. If I wanted to talk rubbish I would visit another blogging site.Fun yes.. , but not offence.
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