Thursday, June 16, 2016

Chiseling in Plain Sight

Market makers are specially licensed brokers of Fed bonds.  They promise to move bonds the Feds offer one way nor another, through their contact worldwide.  Chiseling is carving off a piece for yourself anytime you can.  "Constant" also falls within "any time you can."
In terms of yield, the entire top to bottom move for the entire day was around 5 basis points. Had the Fed really said or done something, action could easily been  triple that if not more.
Priced in volatility is expensive for this reason, even though in most cases nothing unexpected is said or done, other than market makers purposely running stops in both directions.
To constantly be chiseling, to be noted in casual observation by Mish, and of course never noted by porn-addicted captured SEC regulators, is just one of the countless reasons that whenever we look around, anyone making money us cheating, lying, and no one plans to do anything about it.  More of the same.

Get your own business going.

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