THE BIG HEDGE FUND SQEEZE OUT
Now that the Fed has gauranteed profits to the Wall Street banks.
They are starting to report blow out quarters.
JPM, Morgan Stanley.
All blindingly inevitable.
While QE crushes net interest margins and profits from the "investment" side of banks.
At the same time it is boosting trading profits from the "speculation" side of banks.
Thats what QE does, it punishes investment and rewards speculation.
So front running the Fed becomes the only game in town.
(instead of picking up dimes in front of the defecit steamroller they are now picking up silver dollars).
But the banks will want to keep all the cheap Repo money for their own speculations.
And squeeze out the hedge funds.
Que complaints from the hedge funds to the Fed.
Que Fed raising trial balloon in financial press to fund hedge funds directly.