Wednesday, May 23, 2018

How Goldman Sachs made $200 million in one day as you lost a bunch of money

In this CNBC article today, they explain how mega investment bank Goldman Sachs made $200 million a single day while the stock market lost 4%.  A four percent loss doesn't sound like much.  But you have to ask, 4 % of what?  Four percent of the total value of all stocks in the country.  That's a big number.  Around 1 TRILLION dollars in stock value was lost that week.  So somewhere around $600 BILLION of the money in American retirement plans, 401K's and mutual funds simply disappeared.  Bye-bye.  Gone.  But the good news is that traders at Goldman Sachs made a big bet on volatility going higher, and that bet met them $200 million while the American people lost $1,000 billion in wealth that week. 

Does that make you feel better about your nest egg?  No, I didn't think it would. 

No comments:

Post a Comment

A look at some of the bigger discount sales of large commercial properties in recent years

Bond market expert and economic content creator, Steven Van Metre dives into the most recent large value drop on a huge office building.  Mo...