It is a classic example of a ponzi scheme. Goldman sells to Morgan for $1, Morgan sells to Merrill (BAC) for $2, Merrill sells to Citi for $3, Citi sells back to Goldman for $4. They all show a profit - until, of course, Goldman can't find a greater fool to pay $5 and the whole thing collapses. And it will collapse. The only question is when.
"I have a feeling one day the door is gonna close, everyone is going to be running for the exits, there is going to be a major move in the market and everyone is going to wonder "what happened?"
There is problem structurally in the equity markets that nobody wants to talk about. There is intervention, there is manipulation going on. No one has exact proof of what is going on but it's out there, and the real liquidity has been gone for a while. People don't understand, the liquidity is not coming back."
A must watch:
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