Mr. Rastani is absolutely correct when he says traders care what happens to the economy. Traders don’t care what happens. They are out to make a buck. I’m surprised the BBC cast seemed so surprised by what he is saying.
He was also correct that many traders dream of recessions. Me personally I dread them because everyone suffers. But he was absolutely 100% correct when he said the average guy on the street can make money during recessions as well.
I remember several years ago telling everyone and their brother to sell short all the banks and bond insurers and financial companies.
I had several clients that worked at Lehman Bros (LEH). I even told many of them why I was shorting the company they worked at and how I believed it would go under. We always just agreed to disagree on the future of LEH and the market.
They kept going on and on how it would never happen and the sad thing is many of them had most of their net worth tied up in LEH stock. Many of them kept buying on the way down “averaging down”. I ended up short selling LEH into bankruptcy.
Denial is a very strong thing. People don’t realize just how close to a total economic collapse we had just a few short years ago. And the scary thing is many of the same problems out there were never solved….
