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    He definitely speaks the truth. Whether or not it is morally or ethically right, is a complete different ball game. The most depressing part of the situation is he is only a production of the society around him. He is pure capitalism; the pursuit of money above ethics, morality, responsibility
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    http://www.bbc.co.uk/pressoffice/pre...tatement.shtml

    Not a hoax.
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    (Original post by Verstehen)
    I don't understand the surprise at what the guy said, finance capitalism requires people like him to make a quick profit out of the misfortune of others and nation states haven't 'ruled the world' since Thatcher and Reagan were in office. He speaks the truth, what worries me is that people are now powerless to do anything about it, as our feeble democracies cannot clear up in the wake of financial behemoths, much less tell them what to do.
    Indeed. Its a sad state of affairs we find ourselves in and all we can do is watch impotently as the world burns.
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    this guy cant even talk properlly. He is very hesitant when he actually talks about the markets, clearly a bit of a dreamer.
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    get a job in goldman sachs ASAP!!!
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    (Original post by jakezg)
    this guy cant even talk properlly. He is very hesitant when he actually talks about the markets, clearly a bit of a dreamer.
    His forbes interview transcript seems even wierder and more hesitant.
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    “In the interview Mr Rastani described himself as an independent trader. Elsewhere he claims he's an "investment speaker". Instead of operating from a plush office in Canary Wharf Mr Rastani works and lives with his partner Anita Eader in a £200,000 semi in Bexleyheath, south London. The house, complete with a mortgage from Royal Bank of Scotland, belongs to her not him.

    He is a business owner, a 99pc shareholder in public speaking venture Santoro Projects. Its most recent accounts show cash in the bank of £985. After four years trading net assets are £10,048 - in the red.
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    (Original post by Bektas)
    bankers are slated because they are percieved to be lying, yet he's slated because he's telling the truth?
    Ultimately people dislike what they do, and will demonise them irrespective of what they say.
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    (Original post by Hackett)
    This is the response of a BB trader:

    I was asked today on email whether I agree with what Alessio Rastani talked about in his BBC interview yesterday. This was the email I sent back.

    He is a trader. It’s a traders job to predict the future and profit from it.

    If it isn’t that function, then what is it?

    What he is actually saying makes a tonne of sense and it’s how traders think Vs the regular man on the street.

    For example, man on the street has a pension of £25k (UK Average). When the stock market falls 50% he will lose 50% of his wealth (possibly more). A trader will hedge the position by shorting the market and first protect his wealth. Whether the market is going up or down, it’s not a traders job to argue with the market, it’s to make sure that he always makes money (consistently) from the current environment.

    On his comments about “hoping we go into a recession” – he is saying that because he is probably set-up to profit from the market going down. That’s ok. It’s not just him who can make money from it. Any person in the world can short the market to protect their wealth or profit from its fall. That’s why it exists. Shorting is a capitalist mechanism for people to protect wealth. It’s not a bad thing.

    The way the man on the street thinks is totally different to the way traders think and operate;-

    Firstly, most people don't save money, so to blame a man who does save his money and who is trying to protect his wealth is totally ridiculous. If you haven’t earnt, or you have and lived beyond your means then it’s not a traders fault, it’s yours. If you haven’t saved then what right does anyone have to pass judgement on the actions of a man that has?

    Secondly, on hedging. Hedging is simply negating risk. The man on the street thinks shorting (one way of hedging) is a bad thing because they read what the press like to print and it sells newspapers and makes people watch TV programmes (Sensationalism). Shorting is simply one way of hedging. Another example of hedging might be to buy the shares in the electricity company that supplies your own home with electricity. After all you might pay them £1,500 per year for electricity. If you buy £30,000 of the stock and it yields 5%, you will receive a dividend of £1,500 per year. That can pay your electricity bill every year, which means your hedged. If you don't have £30,000 then go and get it. It’s not a traders fault that the man on the street doesn’t have it.

    The man on the street likes to blame other people for 1) not realising what hedging is 2) not having the means to do it. The man on the street simply hasn’t figured out how the world works.

    Another example of hedging would have been to short the banks in 2008. When every “man on the street” globally saw Lehman Brothers go bust, the initial reaction was to point the finger at the bankers and begin to play the blame game. Instead of putting this energy into playing a blame game, a trader puts their energies into protecting their money and “hopefully” profiting from the event. Whether it s a negative “surprise” event or a positive “surprise” event.

    Another example of hedging. If you know this year that you are going to fly a lot more (more business travel and more holiday travel) you might expect to buy £2,000 of flights maybe up from £500 last year. Hedge yourself by buying an airline stock. If you are doing it, then it’s very likely that society will be doing it. If you buy £20,000 of an airline stock and it goes up 20% next year, then you will make £4,000. This will pay for your flights for the next 2 years. That’s another way of hedging.

    So yes. I agree with the Alessio Rastani in many respects. He is simply pointing out to the general public what is the blatantly obvious to guys like him and I. The fact that the general public can’t see this or understand it is not his fault. If 1,000,000 people watch that interview and hedge themselves accordingly he will have saved those people collectively, billions of dollars.

    On another note. Of course I don't like the idea of “hoping” that we go into a recession. However if I am short the market for very good reasons I would also be hoping for that. I would have taken a short bet, to either protect my wealth or to profit from the fall. Same way if i simply held a £25,000 pension. I would hope the market went up. It’s an uncomfortable feeling to hope for disaster, but after doing a tonne of analysis, if a trader believes this will happen and takes a position to be short, its obvious that he isn’t going to hope that the market goes against him. If only 3% of the world’s population increases their wealth in an economic downturn who’s the fool? The 3% or the 97% that ignored what they saw coming and didn’t do anything about it?

    On the idea that “Goldman Sachs rules the world” - I don't believe its Goldman Sachs that rules the world. They are but one player in the capitalist system and due to money they have influence. There are many operators that rule the world. Politicians, central bankers, the media etc etc - We are supposed to live in a democracy in which the people rule the world. Unfortunately, if you mix democracy with capitalism, the most powerful vote is the money note. Lots of money = Lots of power = FACT. If the world wants to change that then they can do. The mechanisms exist. Socialism and Communism however have been proved not to work. So if you want to operate successfully in this system, start by making lots of money, then by hedging and profiting. If you want to operate unsuccessfully in this system, spend your life pointing the finger and blaming those that have realised how the system works. However, just be aware that option number 2 will not put food on the table, will not give your children the best education available, will not provide your family with a good home and the resources required to live a good life. If you want option 2, maybe it’s better for you to outsource your families resource allocation function to the government by voting in a communist government who will plan your resource allocation for you and decide what you will eat tonight, or even perhaps make a move to North Korea ??? If you live and operate in this system, just realise how it works and get on with it. if you don't want to live in this system, I’m sure there are a few billion people globally that would be willing to swap places with you.
    On the surface, this type of response seems all well and good, but the simple fact of the matter is that this current economic system sacrifices morality and social responsibility in favour of a cold, hard lust for money. The resulting consequences are therefore ultimately dangerous, as has been proven through the catastrophic events of the last four years.

    It might seem fine for a banker with a lucrative job in the City earned off the back of a private education that the majority have no chance of accessing to say 'tough $hit, I know how the world works, its not my fault others don't'. However, the lack of empathy for social responsibility, that should naturally arise alongside the belief of an aggrandized understanding of the inner workings of contemporary economics, is quite startling.

    Basically, capitalism in its current form ain't gonna be making the world a better place any time soon. There needs to be change.
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    (Original post by The Menace)
    On the surface, this type of response seems all well and good, but the simple fact of the matter is that this current economic system sacrifices morality and social responsibility in favour of a cold, hard lust for money. The resulting consequences are therefore ultimately dangerous, as has been proven through the catastrophic events of the last four years.

    It might seem fine for a banker with a lucrative job in the City earned off the back of a private education that the majority have no chance of accessing to say 'tough $hit, I know how the world works, its not my fault others don't'. However, the lack of empathy for social responsibility, that should naturally arise alongside the belief of an aggrandized understanding of the inner workings of contemporary economics, is quite startling.

    Basically, capitalism in its current form ain't gonna be making the world a better place any time soon. There needs to be change.
    Yup. Plus the fact that Anton Kreil seems like a tool.
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    This guy has about as much financial credibility as Simon Dixon!
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    (Original post by Zweihander)
    This guy has about as much financial credibility as Simon Dixon!
    Credibility here is not the real problem. The real problem is whether he's right or wrong. People I spoke to in Apax largely agree with him and these folks know the field inside out.
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    I don't have a problem with what he said. I also don't think it was a hoax in the purest sense of the word. How many people know many traders made big money immediately after 9/11? Its what they do, because in their industry nice guys don't finished last. They don't finish full stop!

    All this guy has done was highlight the crass ignorance of the BBC, Forbes, CNN and the general public as a whole. I'm already researching finance on a theory basis, so I'll be interested to see how legit his comments on making money by backing treasury bonds in a recession are.......
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    (Original post by President_Ben)
    “In the interview Mr Rastani described himself as an independent trader. Elsewhere he claims he's an "investment speaker". Instead of operating from a plush office in Canary Wharf Mr Rastani works and lives with his partner Anita Eader in a £200,000 semi in Bexleyheath, south London. The house, complete with a mortgage from Royal Bank of Scotland, belongs to her not him.

    He is a business owner, a 99pc shareholder in public speaking venture Santoro Projects. Its most recent accounts show cash in the bank of £985. After four years trading net assets are £10,048 - in the red.
    Hahahaha! But remember hes been "dreaming and praying for a recession for the past three years". Perhaps your revelation is why. He only makes money in a recession. Listening to a podcast of his though, he doesn't sound anymore clued up on investment banking than myself currently (i.e not very)...........
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    Can someone tell me what it means to short sell? I read somewhere that Soros made a Billion pounds in ONE day when the markets fell in 1992? How does that work?
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    Is he friends with Simon Dixon?:gigg:
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    (Original post by Mr. Overstood)
    Can someone tell me what it means to short sell?
    Short selling is basically borrowing stocks by paying a lending fee and then selling them to another buyer with the belief that they will fall in value. Once they fall in value the short seller buys them back from the poor guy who's been duped and then the stock goes back to the original source (where they were lent from).

    This way the original stock's owners make money from the lending fee paid by the short seller, and the short seller makes money by his speculation that the stock will fall in value after he's sold it.

    Short selling is essentially all about being a middle man; a dishonest one.
 
 
 
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