15-09-2011, 07:41 PM
Denninger asks a good question in his commentary on this matter today:
Quote:A 9% move in seconds in FX is virtually guaranteed to detonate someone, simply because of the leverage in those instruments - it's monstrous (frequently 50 or even 100:1) and 9% moves of this sort are unprecedented in allegedly "stable" currency crosses. You see that sort of thing in nations like Vietnam when they devalue against a peg - not "mainstream" currencies like the Swissy.
But this begs another question: How is it that we never seem to hear about "unauthorized" trades that make banks money?
In other words, why is it that I'm left with this uncomfortable feeling that these institutions only call the cops (in this case) or the media and PR department (in most cases) to call something "unauthorized" when the bets their people make turn out poorly - yet they're more than happy to pat the guy on the back and hand him a fat bonus when it works out well?
"It means this War was never political at all, the politics was all theatre, all just to keep the people distracted...."
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war