Volatile combinations…

From the pink’un letters page, November 7 (I’ve added the hyperlinks)

…. A major problem lies in the fact that banks and other financial institutions have thrived on volatility in recent years. When markets are flat they (and their clients) cannot make directional bets and they make less money on dealing commissions as their transaction volumes fall. The Bank of England’s Andrew Haldane went so far as to use the term ‘volatility junkie’ in his recent Wincott Annual Memorial Lecture when referring to the banks and their shareholders. There is therefore a very real conflict of interest between ordinary savers and investors and the financial world.
Michael Modiano
London EC2, UK

Chrematistics, much?

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About dwighttowers

Below the surface...
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