Trader Tells BBC-Governments Dont Rule The World, GS does!

[zboy1]

Wow, unbelievable. Check out this clip from a stock trader talking to the BBC, explaining the real economic situation. He says he literally 'dreams at night thinking of recessions because of all the money he can make.' He also says that he doesn't care what the governments are doing to fix the financial crisis, because in the end, they won't be able to do anything about it. He also states that governments don't rule the world, but "Goldman Sachs do." Goldman is not too concerned with the economic crisis because of all the money they are making from it. He also says to prepare for the coming economic collapse and that 'millions of savings from people will disappear,' according to the trader. I can't believe this was actually aired on mainstream news--especially on a government propaganda channel like the BBC, because the truth is rarely broadcast on the mainstream.

[Rock]

Wow, unbelievable. Check out this clip from a stock trader talking to the BBC, explaining the real economic situation. He says he literally 'dreams at night thinking of recessions because of all the money he can make.' He also says that he doesn't care what the governments are doing to fix the financial crisis, because in the end, they won't be able to do anything about it. He also states that governments don't rule the world, but "Goldman Sachs do." Goldman is not too concerned with the economic crisis because of all the money they are making from it. He also says to prepare for the coming economic collapse and that 'millions of savings from people will disappear,' according to the trader. I can't believe this was actually aired on mainstream news--especially on a government propaganda channel like the BBC, because the truth is rarely broadcast on the mainstream.

There's nothing extraordinary in what he said other than perhaps that Goldman Sachs rules the world. I know people who talked and wrote about Eurozone collapse and currency crises 6-12 months ago. Most traders make the bulk of their profits during very volatile markets (ie high VIX levels), strong bull markets, and crises style market collapses. Calm markets are the most challenging for them unless they happen to be pure option sellers. So a market collapse is a wonderful opportunity for most traders.

Actually, the strategies he spoke of - protecting your assets by holding US$ and buying treasury bonds, are very conservative. I suspect that if he really believes what he is predicting, he would take much bolder and potentially very profitable positions such as:

- Buy large positions of USD/EUR on high leverage

- Short AUD (Aussie dollar)

- Short S&P500, perhaps through ultra short funds which magnify those short positions

- Short copper

- Prepare to opportunistically pick-up high risk/high yielding assets once they collapse in value to 2009 crises trough levels - 1. Carry trade currencies such as South African Rand, Turkish Lira, and Aussie dollar, 2. High yield bond funds

- Prepare to opportunistically pick-up assets with strong fundamentals once they fall in value to 2009 crisis trough levels - Asian currencies (notably the Singapore Dollar and to lessor extent, emerging market Asian currencies -Thailand, Indonesia, India, etc.) or even select bonds and/or stocks denominated in those currencies.

- Continue to hold Renminbi for whole period as its a play on USD with potential further upside from high inflation and current monetary fundamentals of China. Moreover, quasi CD type products with durations of less than a year which yield 5-5.5% are being offered by some local Chinese banks to their customers so you can also enjoy a superior yield on such investments.

Any retail investor with some spare funds can take all of the above positions so no need to work for 'Government Sachs'. If US Fed were to implement a third round of quantitative easing, that would probably mess up these positions for a period of several months. But it seems fairly unlikely that they will take such measure given strong GOP resistance.