Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Should We Feel Sorry for Bankers?

Should we feel sorry for bankers?  

23 members have voted

  1. 1. Should we feel sorry for bankers?

    • Yes, I feel sorry for them.
      1
    • No, I do not feel sorry for them.
      16
    • Who cares?
      6


Recommended Posts

I agree as well. I voted who cares?

 

Yep, life is harsh and every day, somewhere in the world, someone is losing out due to something that probably wasn't their fault but end of the day, I agree, who cares?

Share this post


Link to post
Share on other sites

Lets get the frame right here.

 

When bankers decide that they are swashbuckling risk takers --- they deserve whatever evil comes their way. Have you heard of a lot of bank CEOs who are giving their bonuses back?

Share this post


Link to post
Share on other sites
Lets get the frame right here.

 

When bankers decide that they are swashbuckling risk takers --- they deserve whatever evil comes their way. Have you heard of a lot of bank CEOs who are giving their bonuses back?

 

No, but they are the ones who should be suffering.

 

'Swashbuckling risk takers' didn't cause the credit crunch or economic crisis, greedy bank CEO's did but its never the real guilty who get punished.

Share this post


Link to post
Share on other sites
Should We Feel Sorry for Bankers?

 

Absolutely not and especially the CEOs who in the UK seem to have not only got away with not losing their positions but are still getting their bonuses. This is the only industry where abject and total failure with astronomic losses results in the same people running the show. It is total lunacy in my view.

 

 

Paul

Share this post


Link to post
Share on other sites

It's unfortunate for the rank-and-file at those banks, but really I know a few of them and most of them are so arrogant it's hard to feel TOO sorry. I try though. Besides, why should they be more special than any other corporate drone that gets laid off?

 

As an aside, did anyone else laugh when they heard about Fuld getting laid out in the Lehman Bros company gym? That guy is such an arrogant ****, he deserves to be stripped of his wealth and put in a housing project.

Share this post


Link to post
Share on other sites

I just want to clear any confusion I may have aroused. I do feel sorry for the likes of Gammajammer (to a degree) but NOT those who orchestrated and allowed the ludicrous mortgage lending.

Share this post


Link to post
Share on other sites

There are bankers and there are bankers.

 

The majority of bankers making $US 100 thousand or less probably had no idea what risks their banks were taking on, while most of the CEOs, CFOs probably did and were willing participants. Margins take on risks as well as potential profits and the CEOs were eager to have their big payday and many did and some were smart to get out as Hank Paulson, the present US Treasury secretary did in 2006 with a take of more than $US 500 million from Goldman Sachs (tax free, because US laws allow tax free divest selling of stocks when you enter US government by appointment).

 

In 2004, the SEC allowed the major US investment banks to take on debt much higher than previous levels after the 5 major IBs lobbied for the rule change:

They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments.

 

This is probably the single most damaging change in regulation that prompted the ultimate collapse or reorganization of all the US investment banks. Initially, their earnings exploded upwards, but no parabolic market is sustainable. Only 3 short years later the market collapsed and basically they all got margin calls, together with many of their partners in the hedge funds.

 

The present situation would have been a lot more manageable if they only took on debts at less than 10 to 1 instead of the 33 to 1 or even some at 60 to 1. So it is not the mortgage lending that directly led to their collapse, but the leverage that they took in the collateralized lendings.

Edited by thrunner

Share this post


Link to post
Share on other sites

Well, if you're the top brass, it's a like a crap shoot knowing you'll walk with a bonus if even things don't pan out (golden parachute), so why not go for broke? Think about it. If they risk, everyone loses, but still walk with a insurance policy to keep you unemployed for a few years if not a lifetime. If you win, everyone's is happy and he get even a bigger cut. So it's win-win situation. That's the kind of backward, f-ed-up incentive and message the financial or corporate breeding we endorse? Doesn't make sense for the longest time, now the consequences are playing out, guess what? People fix things only a tragedy has happen, not before. We deserve what we got. You ignore the problem long enough, it'll come back as a massive snowball.

 

The other thing that's convinced me over time is no matter how smart you are, greed still own you. All these ivy leaguers who run the show in Wall St. are only human. We worship them because of the brain power. They create all these new markets using complex math formulas, wow indeed. But when it comes to greed, nothing to envy, guys. Hell with the formula, take the bigger risk and go for the gold. In the end, they can't control greed either, just like the average joe.

Share this post


Link to post
Share on other sites

No.

But we should understand - Commercial banks had no choice. “In a time of state-sponsored easy credit all projects get financed by incautious banks with cheap, centrally supplied money. There is no market for cautiously lent money, priced correctly for the risk involved. Why would anyone pay more for funds from a cautious bank when cheaper funds are available from easier sources?” Paul Tustain. Compound that with ‘bureaucratic’ / ‘legal’ pressures to make loans to anyone who wanted to own a house… Heck, under those circumstances, I can’t even blame top level execs for demanding ‘no – lose’ compensation packages.

Share this post


Link to post
Share on other sites

I voted yes, then realized most of you were talking about CEOs.

 

As for the guys who lost their job and were really just doing what they were told, that sucks. It's devastating to get laid off, and I can't imagine how the guys at LEH must feel after their company went bankrupt. It's not like they were running around like Tarzan taking retarded risks and knowing about it. Of course they know theres risk involved, that's the nature of this business. But I sincerely doubt any of them knew the outcome. It's probably pretty rough on those with families.

 

It's very easy to sit back and point out the blame, even at CEOs. I think it's stupid, because none of us really know the whole story. Even those of us who have done a lot of research, you will still never know the entire story, therefore it's pointeless to sit back and judge - especially in hindsight. And as traders, I'm kind of surprised so many of us are taking that route.

 

I hope we all realize how hated even we are on main street.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.