Ken Karachi

Ken Karachi

The Fed has raised rates, officially making real what was mere signaling of the end of its expansionary era... Or is it? You see, from a practical perspective, QE is still in full effect. The US housing market, particularly in large coastal cities is on fire. Commercial and residential rents are rising considerably faster than earnings and incomes. Why is that? Wel...

Not only did the Fed go from zero MBS holdings in 2009 to holding about a 5th of the entire nearly $9 trillion dollar MBS market, it still buy tens of billions of dollars of MBS monthly through reinvestment of cash flows back into MBS purchases. This dramatically and synthetically misrepresents the bid for these things. There is no way the Fed will be able to cease these monthly deci-billion dollar purchases without pushing rates up dramatically. If that's true (and it is) then they definitely will have a problem unwinding that $1.8T basket without breaking the real estate market. This is undeniable. In the meantime, we're partying like it's 2007,er.. I mean 2017. There goes that 10 year real estate cycle...

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Many bitcoin aficionados are waiting with baited breath as the SEC is to announce by this Friday whether they will approve the first registered bitcoin ETF. This is not the make or break event that many think it is, though. As a matter of fact, if the ETF is denied and the bitcoin drops, I'll consi

European Bitcoin Acceptance

An ETF will allow institutions to flood into Bitcoin through registered vehicles. Whether the SEC approves the Winkelvoss twins ETF is besides the point, institutions interest is already sparked and the money will come in anyway. Btstamp, one of the world's largest bitcoin exchanges, is partnering with one of the largest French banks, Crédit Agricole, to facilitate bitcoin acceptance at investment funds. According to Coindesk:

...launch a new service aimed to allow bitcoin to be accepted by investment funds.

For its side of the deal, CACEIS, the asset servicing branch of the bank, will provide services covering clearing, depositary and custody of bitcoin bought in through the exchange.

The goal of the partnership is to increase capital inflows to new investment funds by providing an alternative funding method in the form of the digital currency. Fund promoters, working with CACEIS as a transfer agent, can start accepting bitcoin for fund subscriptions as soon as Q2 2017, the firms indicated.

Bitstamp CEO, Nejc Kodrič, sees the partnership as a foothold for bitcoin to be used for mainstream, legitimate investment opportunities,

“Bitstamp’s first partnership with a market-leading, asset-servicing bank like CACEIS means bitcoin investments can now be made within fully licensed and regulated framework,” he said.

As bitcoin gains traction, it's easy to see why some investors are picking up interest. In jurisdictions with capital controls, using bitcoin circumnavigates regulatory headaches and streamlines cross-border payments.

Joe Saliba, CACEIS deputy chief executive officer, said:

“Fund promoters are constantly seeking new sources of investment capital and by interfacing them with a regulated bitcoin exchange we are supporting their business development objectives. “

Japanese Adoption

Japan has recently overtaken the US and China as the highest-volume country for bitcoin trading in the world. The reason is due to increased regulation in Japan, and the recognition of bitocin as legal tender, which allows banking instituions to deal with it directly as of April 2017. Japan is the world's 3rd largest economy and has one of the world's largest banking systems. 

Chinese regulation 

The PBOC advised Chinese bitcoin exchanges to prevent withdrawals until they updated their systems to comply with KYC/AML rules. This was easy to see coming since Chinese were using (or at least media reported they were using) bitcoin to circumvent China's capital controls.

Coindesk reports: Chinese Bitcoin Exchanges to Resume Bitcoin Withdrawals Pending Regulator Approval. China's 'Big Three' bitcoin exchanges have announced their intent to resume withdrawals in new statements issued today. This clears the way for Chinese banks to enter the industy.

While many pundits took the drop in volume from the PBOC crackdown as a negatie or even the end of Bitcoin, a more macro look hinted otherwise...

Subscribe to BoomBustBlog now. I will be releasing a Buy Side Bitcoin Investment and Valuation giude within a week. It will be the only of its kind, showing the unique properties and risks of ths new investment asset. In the meantime, take note of the strong risk-adjust returns of bitcoin investent..

Bitcoin Investment Risk vs Reward Calculator to Compare BTC to EUR, GBP, Gold & Stocks
Written by Reggie Middleton
After reading what is essentially Fake News about Bitcoin from Financial Times, London Business School and Credit Suisse, I have created an easy to understand metric that allows anyone to compare the risks and rewards of Bitcoin to basically any currency, commodity, stock or asset class. 

It's Time To Beat Up On Credit Suisse and Their Woefully Misinformed Bitcoin Advice
Written by Reggie Middleton
Credit Suisse has been posting cryptocurrency advisories over the last few weeks. They are quite one-sided, although couched in the appearance of objectivity. To explain why it's couched in the appearance of objectivity, and not actually objective, let me give you some background.

How to Use, Trade, Store and Invest in Bitcoin Digital Assets - Step by Step, Part 1
Written by Reggie Middleton
I will teach novices and experts alike how to fit Bitcoin into an investment portfolio safely and with the optimum risk-adjusted potential - along with step-by-step guides, instructions and tutorials. This first part of the series starts with the basics, obtaining and managing your bitcoin.

Censorship, Autonomy and Risk Management When Dealing With Digital Assets: How to Minimize Risk of Loss

Written by

This is a video on the topic of the qualities of Bitcoin blockchain's censorship-proof attributes and how they apply in the world we live in today. It is imperative that you look at this as an dispassionate investor and steward of your assets, and not as a partisan or political supporter of XYZ.

There have been rumors that the Chinese Central Bank (PBoC - People's Bank of China) would limit or eliminate margin trading in Bitcoin. It is now official, sort of...

Two of the largest Chinese bitcoin exchanges, >OKCoin and Huobi's " style="border-width: 0px 0px 1px; border-color: initial; margin: 0px; padding: 0px; font-size: 17px; color: #408bfe; outline: 0px; font-family: ProximaNova, 'Helvetica Neue', Helvetica, Arial, sans-serif;">Weibo have announced a halt to margin trading in bitcoin, citing guidance from the PBoC. This was guidance, and not an official rule, according to Coindesk's reporting. I have commented on the liklihood of the PBoC cracking down on BTC as a workaround for capital controls, reference The Macro Truth About The Big Bitcoin Pop. As of right now, I have been proven correct.

Expect this action to reduce the volume of bitcoin trading in China. For one, the lack of access to margin may quell volatility on one hand, but also compress liquidity. Without the ability to charge for lending products, Chinese bitcoin exchanges may have to go for plain vanilla trading commissions (which they don't currently have). As a result, expect a move towards parity between Chinese and US/EU bitcoin exchange volumes.

China used to be the king!

  leaking from China into  , nearly $20M per hour, showing power of public blockchain &  in capital controls

Of course, there are other ways to attain leverage in bitcoin transactions, circumventing 3rd parties, hence eliminating central bank influence. It's called Veritaseum (see What is Veritaseum? A Layman's Explanation) and heralds P2P capital markets (see  through Pathogenic Finance (download the report  -->4.58 MB ) ).

Here's the quick video...

 

 

In the educational piece titled "

Bitcoin is a volatile asset. This is likely the reason why amateur investors see it as risky - it is. The issue is that you don't choose investments based solely on risk, or at least you shouldn't. You should choose on risk-adjusted return - or - the amount of return you get given the amount of risk you take to achieve said return. Using that metric, Bitcoin is the unparalleled king amount major asset classes over the last 7 years. In "Is Bitcoin Too Risky?" I measured the risk-adjusted return of Bitcoin and compared it against the S&P 500 and the British Pound.

Several clients have asked me how Bitcoin compares to other asset classes, so here we go. Below is BTC returns measured since 2011 and expressed through the Sharpe ratio, a formula that measures risk adjusted return. As you can see, BTC (bitcoin) is the third best performer out of the bunch. Pretty good, eh?

But... There's a problem with graphic above. You see, the Sharpe ratio penalized volatility (expressed as standard deviation) as risk. Some of us actually like upside volatility, and most of us dislike downside volatility. This is an example of Bitcoin's upside volatility (gains) that were actually penalized by the Sharpe ratio...

If we use a more refined method, such as the Sortini ratio, that only penalizes for downside volatility, we get a very different result...

Time Period BTC Price Yearly Returns Risk Free Return Bitcoin Excess Return Negative Excess Return
1/1/2011  $                                0.32   1.97%    
1/1/2012  $                                6.81 2009.01% 1.91% 2007.10% 0
1/1/2013  $                              13.74 101.76% 2.86% 98.90% 0
1/1/2014  $                           830.50 5944.40% 1.88% 5942.52% 0
1/1/2015  $                           285.12 -65.67% 2.09% -67.76% -67.76%
1/1/2016  $                           435.40 52.71% 2.42% 50.29% 0
1/1/2017  $                        1,015.54 133.24% 2.42% 130.82% 0
           
      Average 1360.31%  
      BTC Standard Deviation 23.77952001  
      Bitcoin Sharpe Ratio 0.572051908  
      Min Acceptable Return 2.42%  
      Downside Risk 0.276624445  
      Average Excess Return 1360.31%  
      Sortino Ratio 49.18  

 

Since 2011 (I know the charts say 7 years, but it's 6), Bitcoin has been no less than 9.5x greater than it's closest competitor (the LSE, which rates highly due to relatively low volatility) and clearly outclasses every other asset class and asset in the study.

The London Business School, the Financial Times and Money Magazine, among many other "so-called" professional finance types really need to subscribe to Reggie Middleton's BoomBustBlog in order to understand what this Bitcoin thing is really about.  

Next up, I'm going to show funds and professional investors how to add Bitcoin to your portfolio to juice your returns AND reduce your overall risk. Then we will work on customizing your risk-adjusted reward with Veritaseum smart contracts. Heady stuff! Stay tuned.

Subscribe to BoomBustblog

Learn more about programmable bitcoin "smart contracts" at Veritaseum:

  • What is Veritaseum? A Layman's Explanation  
  • The Onramp to Peer-to-Peer Capital Markets

Learn more about Reggie Middleton here...

 

...and Pathogenic Finance.

 

 

Re: Trump and his Mexican wall, you can't unring the bell once it comes to global economics. The biggest beneficiaries in terms of building materials from building a Mexican wall will likely be Mexican materials companies.

 

 

 

 

Tuesday, 20 October 2020 12:06

What Trade War With Mexico May Mean

A border tax would hurt foreign companies that rely on cheap Amercian labor in Mexico would get hurt first, and then the increased costs will get passed on to the US consumer. This is all part and parcel of going after Mexico via a trade war/ This also doesn't take into consideration the fact that Mexico purchases a lot from the USA as well.

We sell computer peripherals, computer chips, electrical appliances and electronics to Mexico. Hypothetically, Mexico could put a border tax on these goods coming from the US and buy these products from China, Taiwan and Korea - who have become much more proficient at building these things at costs lower than that offered from the US. Eaxmples are:

  1. Samsung
  2. LG
  3. Huawei, and their Hisilicon chips used in their midrange and high end smart phones. 

These will come directly out of the revenue streams of US manufactuers.

Then there's the immigrant deportation issue. Pushing deportation to Mexico would bite those industries that rely low cost immigrant labor. Examples include:

  1. restaurant industry
  2. construction
  3. manufacturing
  4. Home renovation

Last week I queried "Is Bitcoin the Undisputed Best Performing Asset Class In the World?". The purpose of that piece and the piece before it was to debunk long standing misconceptions as to the actual investment performance of BTC (bitcoin) as portrayed by respected institutions such as the London Business School and the Financial Times, not to mention Money Magazine. 

Now, it's time to get into exactly what value propositions are there to support bitcoin's price.

I've noticed a common thread with many pundits who have erroneously claimed that bitcoin does not have any intrinsic value. That thread is either a distinct lack of knowledge in valuation and/or a misunderstanding of what bitcoin is. Thus, first order of the day is to determine exactly what it is that we are discussing. 

What is Bitcoin?

Bitocin (with a capital "B") is protocol-based network. In that regard, it is similar to the Internet - another protocol based network. Bitcoin uses "consensus algorithms" that facilitate network participants in agreeing on the state of affairs in the network. In that regard, it is like a large digital democracy, cum global network computer. This global network computer needs applications to run on it (like the Internet). The first (popular) applications on the Internet were FTP and email. The first application on the Bitcoin network is also (thus far) the most well known. That application is a digital currency called bitcoin (with a lower-case "b"). It is "b"itcoin that many attempt to value and evaluate, but they don't realize it. Because of that misconception, they fail to see the whole value. You see, the full value of bitcoin cannot be separated from that of Bitcoin - at least for knowledgeable investors. See the video below at the 3:10 mark for an explanation.

What is the significance of differentiating between "b"itcoin and "B"itcoin?

You see, the network that "b"itcoin travels on, "B"itcoin, adds significant and material value. It allows bitcoin to be used on a fully automomous basis.

In addition to full autonomy, you can program bitcoins - so much so that you can cause a simple bitcoin transaction to behave as an equity/public stock sale or an interest rate swap or any swap-style transaction using any of over 30k active tickers found on Bloomberg, tracking the underlying basis point by basis point - all without counterparty or credit risk.

Here's a screenshot of our smart contract-enabled bitcoin wallet that is sitting on the same tablet that I'm using to type this article...

In case your wondering... Yes, Bitcoin can replace the prime brokerage function of an investment bank - without the balance sheet exposure. Here's a video of a simple Apple equity exposure trade.

Wow! I didn't know it could do all that? So, why isn't everybody using it?

Well, the FIRE (finance, insurance and real estate) industries are really trying to use it, but they are confused and compromised. They are confused because the word bitcoin has become anathema among the financial elite. Why? Well, because they believe what they read in the pop media and the pop media has attached bitcoin to drug dealing, child porn and all other sorts of underworld murky things (the same things that the USD and the EUR are used for more than any other currency). So, instead of doing their own independent investigation, they jumped to inaccurate conclusions.

But... The underlying technology behind "B"itcoin is so revolutionary, the FIRE sector decided to attempt to co-opt it for their own private label uses. These efforts go by many names, but the most popular are:

  • Private Blockchains
  • DLTs - Distributed Ledger Technology
  • Federated Blockchains
  • and the most realistic name of them all, distributed databases.

Now, this can be an entire article onto itself, so let's just suffice it to say that these efforts are doomed to mediocre success at best. Why, you ask? Because:

  1. The purveyors of these technologies are generally consortiums of large players in the same industry who are direct and often fearsome competitors, and;
  2. They simply can't benefit from the wide (and increasingly wider) adoption rate of Bitcoin.

Point one is plain on its face. Goldman Sachs does not share trade secrets with Morgan Stanley or JP Morgan. Point two is just as clear once obvious comparisons are made. If you remember when I said the Bitcoin network had some similarities to that other popular network - the Internet. If you were to purchase - of value - two versions of the Internet, one with 30,000 users (roughly the amount of clients of a major US money center bank), and one with 11 million users (the rapidly increasing number of clients for the Bitcoin public blockchain. Which would you consider more valuable? It's like choosing to buy JP Morgan's intranet, versus the entire World Wide Web!

Here are some videos to help drive this point home...

 You see, it's the network effect - that byproduct of Metcalf's law - that cements such significant intrinsic value within Bitcoin (in addition to all of the other stuff above).

How much of a value add is the network effect for Bitcoin? I decided to calculate it and plot it out for you...

With that understanding, one should surmise that we believe Bitcoin is a medium term "buy".

Here are some pricing and market depth metrics from today. We will happily assist subscribers in purchasing both bitcoin and bitcoin derivatives, as well as advising on trading, storage/security and strategy.

The next installment will illustrate how to bitcoin into your investment portfolio.

We are now offering consulting services for those institutions are HNW investors who wish to have a deeper dive into this topic, how to monetize it, and handheld guidance along the way.

Continuing the conversation of whether it's time to short America, we investigate the administration's plans for protectionism and a tax holiday for corporate capital repatriation. The first question that needs to be asked is, "Who benefits from this, and why do they want it done?"

 For the outline that we are working from, reference Is Time to Short America? Macro Risks + Unpredictable Administration / Geopolitical Uncertainty = ?. Two of the Trump administration's biggest selling points are protectionism and tax holidays. 

Protectionism

Trump has already authorized the building of an $18B dollar wall. This is a monumental undertaking which he already speculated would enrich certain manufacturing companies, reference Some of the Biggest Beneficiaries From Building a Mexican Border Wall May Be Mexican Materials Companies. As a matter of fact, some companies' share prices have already started moving in anticipation (chomping at the bit, so to say) or getting a chunk of that deal, look!

Do you know why number 6 on that list is moving so much? Take a guess! It's because the swimming among the many standing conflicts of interest in the Trump administration... (click any graphic to expand so you can see those little words)

Is his pick for Secretary of Transportation, Elaine Chao. Ms. Chao just so happens to be director on the board of Vulcan Materials. Helluva coincidence, eh?

I'll give you three guesses, and a bonus round if you still can't catch up, as to who will get a good portion of the $18B wall building businesses when it comes up to bid (or sole source, as it may be).

Trump also floated the idea of a tax holiday to repatriate foreign capital into the US to fill our coffers and provide capital for hew jobs and hiring. It sounds very good, except for two things:

  1. It doesn't work like that,and 
  2. it exacerbates the problem by making the rich people richer and the poor people poorer.

Now, rich people may like that concept - at least at first, and if they didn't think it through. Of course, once you start thinking, you realize the world (nor this country) can live solely off of financial assets. Somebody, somewhere has to work to build or make something of tangible value. Herein lies the rub. You have to enable workers to maintain a better then living wage, or the amount of time the capitalist class can take advantage of them is limited. Let's step through some historical facts and analysis, shall we?

So, if tax holidays don't work, and they have been proven not to work in the past, why in the world would Trump, et. al. recommend a tax holiday? The answer is quite simple - follow the money! These are the companies that have the highest holdings offshore, and the best tax/bailout deals with the government. I don't have time to get into the finance dudes, but the tech side drives the message home.

Now, does this answer the question as to why Trump will declare a tax holiday if it actually loses money for the American people and costs jobs? Of course it does, just look at the Secretary of Commerce nominee. He's the multi-billionaire, Wilbur Ross. Wilbur is a very, very connected man. Among those connections, he ran the Rothschild's financial arm as Chairman, CIO and Executive Managing Director.

The Rothschild's are one of the oldest money families in the western world,dating back to the 1760s. They control a lot! Now they control the US Presidency through Secretary of Commerce (the Democratic Party cannot block it).

What else does he control? Well, he's also Chairman and Chief Strategy Office of Invesco, Ltd. To put this into perspective, Invesco has over $2,000,000,000 of holdings of the yellow highlighted companies in just ONE (1) fund. There are at least 3 to 4 other funds that hold these stocks too. There's no conflict there, is it?

Now, to be fair, Mr. Ross has said he would divest of assets that pose a conflict, as I'm sure Ms. Chao has promised as well. Then again... That's what Donald said, wasn't it? Even if he does fully (operative word) divest his linkages and ability to bestow favoritism is not only extant, but strong and deep. Expect Goldman and Rothschilds to take issue in their divvying of the booty. I can go into Trump's wooing of the auto industry, and Mr. Ross's extensive auto industry businesses and connections, but I think you get the point. 

So, now you know why we can have a tax holiday and and build a wall, when neither is in the country's best interest. For those investors who have running less than $16B or so in AUM, there is actually a need for sustained economic activity uptick, and not the temporary trading spike to be had from these one time machinations. That, I'm afraid, will not happen if these policy proposals actually go through.

Tax holiday for corporate capital repatriation borne on faulty premise, one that history clearly illustrates:

  1. The last tax holiday that we've had was in 2004, allowing U.S. multinational companies, allowing them to repatriate foreign profits at a 5.25% tax rate. Consequently, corporations repatriated $362 billion into the American economy. That is $456 billion in 2017. These funds were used primarily for paying dividends to investors, repurchasing shares, and M&A activity - basically, the acquisition of financial assets. In 2011, Senate Democrats, arguing against another repatriation tax holiday, issued a report asserting that the previous effort had actually cost the United States Treasury $3.3 billion, and that companies receiving the tax breaks had thereafter cut over 20,000 jobs.[2] A second repatriation tax holiday was defeated in the United States Senate in 2009.

We are wavering between moderately and strongly bearish in the medium term. We do acknowledge some trading spikes, hence we are researching long/short trades to minimize some of the risk. 

My next article will discuss the possibility of stagflation with plenty of data for paying subscribers. 

See also, Is the Trump Rally Over?

 

 

 

 

 
 

Apple has been a money printing press for the last decade. At the behest of the late Steve Jobs, they have had one key, core ability that no other company has been able to match. No, it definitely wasn't innovation or engineering. It was... the RDF. The Reality Distortion Field! For some reason, when normal people look at Apple hardware or financials, they don't see reality, they see Reality Distooooorrrrtion! But before we get to that, let’s see what all of the smart people in the financial world had to say...

Apple’s 1st quarter 2017 earnings were horrendous, and I mean horrendous. This was called an “earnings report”, no? Not a revenue report, or an earnings per share report, but and “earnings” report. The franchise is slowing, and its slowing rapidly - despite the gratuitously lucky demise of its largest competitors flagship device, the Samsung Galaxy Note 7. This is bad!

This wasn't the first time the Apple RDF field took effect around earnings time. This was 3 years ago,..

They Couldn’t Outperform, Even With the Competition Gone!

Apple’s major nemesis, and the only other vendor that competes closes with it in volume was forced to recall its flagship device very early in the quarter. That means that Apple had free reign in the space save some of the much smaller Android brands and the near non-existent Windows Phone and Blackberry.

As you can see below, that recall hurt Samsung materially.

 

 

The Note 7’s absence is also visible in the global rankings of handsets shipped and market share. Here, you can see Apple took the lead, albeit ever so slightly.

And therein lies the rub. Why is Apple’s lead “ever so slightly” when they were running a races against a one-legged man. Samsung didn’t even have a flagship model for the season and they still almost matched Apple. That means if the Note 7 didn’t get recalled, they would have spanked Apple in both handsets shipped and global market share.

That is a NOT a good sign!

Now, let’s take a look at Apple’s specific performance for the quarter. Before we go on, remember the gushing statements you found when Googling “Apple’s earnings”? Record quarter! Most revenue ever! Record earnings! Well, I don’t know what earnings report those guys read, but the one I read was horrible!

Net sales are up YoY, that’s good. They finally broke that losing streak (although they maybe didn’t since they didn’t have their traditional competitor), but…

  • Cost of sales are up!

  • Gross margins are down!

  • Operating income is down!

  • Pre-tax income is down!

Actually, the only things that are up (besides revenue boosted from a lack of competition) is share buybacks and dividends.

And that’s how Apple was able to fabricate the story of record earnings (per share).

Subscribers can access an extended version of this document that goes into these issues in a little more detail, here . You can subscribe to our services here.

The following are legacy BoomBustBlog research reports on the topic.

  1. pdf Mobile Computing Vendor Long List Note WIP
  2. spreadsheet IPhone Margin worksheet blog download
  3. spreadsheet IPhone Margin worksheet blog download
  4. pdf Apple Margin Strategem WIP
  5. pdf Apple Earnings Guidance Analysis
  6. pdf Apple business model note
  7. pdf Apple 4Q2013 preliminary update
  8. pdf Apple 4Q2012 update professional & insitutional
  9. pdf Apple 1Q2013 update Pro & Institutional

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Bloomberg reports: Dodd-Frank’s Tentacles Go Deep. They Won’t Be Cut Fast or Easily. It took seven years to put these regulations in place. Is it rational to think they can be removed in less than 4? If not, then the financial's rally may be a tad bit premature and overdone.

There will be quite a bit for time before financial institutions see relief from the repeal of Dodd Frank under Trump, Here's a quick rundown of the reasons why:

  • Whether by Democrat's machinations or Trump's performance, this administration does not have the appointees running the agencies that oversee financial rules.
  • New legislation have to be passed in order to ease the current legislation. That means all will have to get along and play nicely, and quickly. Two weeks into the presidency, the Democrats are playing scorched earth and the GOP questioning and questioning again, support for Trump in light of what many perceive to be missteps or even incompetence.
  • Trump has purposely placed livefire lightning rods in the form of two former Goldman Sachs partners as the lead in the effort to repeal bank regulation in the same economic cycle that said bank assisted in tearing down the global economy. The further galvanizes a partisan congress, and even gives some GOP members reason for pause.

Obama era protections eyed for the Ax

At risk of removal are:

  • Proprietary trading restrictions;
  • Systemic financial institution designation
  • Financial institution dismemberment upon insolvency Big Banks To Tell U.S. Regulators How To Dismember Their Corpses.
  • The Consumer Financial Protection Bureau.

Most importantly (at least to many potential subscribers to our advisory servers) Trump is Rolling Back Obama Legislation That requires financial institutions to put their clients interests above their own. This has a special place in my heart, for we have a long track record of countering the effects of Wall Street banks putting their bonus pool above the interests of their clients. This is not only germain to retail investors and mom and pops accounts. Institutions and UHNW get fleeced for more than anyone else. 

Remember Wall Street Real Estate Funds Lose Between 61% to 98% for Their Investors as They Rake in Fees!

How about our friends at Goldman Sachs and Henry Paulson (Bush's Treasury secretary!) settle fraud lawsuit over Abacus investments Goldman Sachs, Paulson settle fraud lawsuit over Abacus The victim was a mortgage insurer, hardly an amateur investors. How about Goldman Sachs Agrees to $5 Billion Mortgage Settlement . Or how about Deutsche Bank Agrees to Pay $7.2 Billion for Misleading Investors. I can go on, but I think you get the point. BoomBustBlog independent research and forensic advisory services are going to be in very high demand.

This liberalizing of Obama era rules is in direct contravention to the populist platform that Trump ran on (with a special part featuring Goldman Chief Executive Officer Lloyd Blankfein in an segment about corporate chieftains pocketing the wealth of American workers)..

That was the spiel. Here's the reality...

If you haven't already, see  Apple's 2017 1st Quarter Results as Viewed Outside the Reality Distortion Field for how Wall Street banks are already gearing up to get them bonuses.... Now, more than ever, the services of BoomBustBlog are needed by both individuals and institutions! 

The Ex-Goldman team outlined above answer directly to Trump, and two of them, National Economic Council Director Gary Cohn and Treasury Secretary nominee Steven Mnuchin, will be the one's slated to dismantle the Dodd-Frank rules. Ohh!!! I can see how worker-centric that will turn out to be. This will likely hurt the small and medium institutions the most (dollar wise) for that's where the juiciest meat is. As quoted from the Bloomberg article:

On Friday, Trump vented that the law had made it difficult for his business friends to get loans, and boasted to a group of executives gathered at the White House that he was getting feedback on how to fix it from an ideal adviser: JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon.

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