So I just read in my morning paper that 4 of the 5 largest banks in the United States have racked up perfect quarters in their trading businesses this past quarter. Citigroup was the only one not to break out it’s trading by day, but the other three had zero days of trading losses, and reports say Citigroup also had zero days of trading losses.
How did this happen, was it the genius of those high paid executives that these large corporations can’t do without? No.
You can chalk this up to the banks taking advantage of the government assistance they so badly need. With the fed lending the banks money at close to zero percent, and the banks able to carry even 10 year government bonds paying 3.70%, that is a pure profit play.
So that’s great, our large banks are making record profits, must mean they are lending to more small businesses to stimulate the economy, right? I don’t know about that.
Well, if not more lending, they must be making a major push to help all the underwater homeowners with loan modifications, right? I wouldn’t bet on it.
The banks are simply making as much money as they can for themselves. Awful nice of us to give them free money so they can make more money. I guess they have to stuff their mattresses with something right? I wouldn’t want the high powered bank executives to have to fly around in second hand jets, that’s not very safe.
Seems like things haven’t changed, like always, the rich keep getting richer, while the rest of us scrounge for the occasional bone they throw our way. It’s been an awful long time since they’ve tossed me a bone, though, how about you?