Global stocks rise on US move to

[Omaha Steve]

Source: AP

By JOE McDONALD

BEIJING (AP) — Global stock markets rose Friday after U.S. regulators removed some limits on banks’ ability to make investments.

London and Frankfurt opened higher, while Tokyo, Seoul and Sydney also rose. Hong Kong declined. Chinese markets were closed for a holiday.

Markets regained momentum after the Federal Reserve and other regulators announced they will ease rules that limit banks’ ability to invest in hedge funds and some other areas. The change could help to boost bank profits after central banks cut interest rates to almost zero in response to the coronavirus pandemic.

Gains were relatively small because Washington delivered no more than was expected, Stephen Innes of AxiTrader Corp. said in a report. He said markets gave a similar “mild reaction” to the Bank of England’s earlier decision to ease bank policy.



A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 26, 2020. Asian stock markets followed Wall Street higher on Friday after U.S. regulators removed some limits on banks' ability to make investments. (AP Photo/Ahn Young-joon)


Read more: https://apnews.com/7ac105fd2718ad863458aa21b91fd054

[CurtEastPoint]

1. Well, there goes the relative safety of money in banks.

[Laelth]

2. Bad idea. n/t

-Laelth

[NoMoreRepugs]

3. Colossal blunder. We don't even need the wayback machine

to remember how close we came to world economic collapse a little more than a decade ago? Wow, we might be the stupidest country EVER.

[SouthernCal_Dem]

9. We elected a reality TV game show host for president.

We are indeed the stupidest country ever.

[ancianita]

4. Good lord.

Do they really need to make these moves right now?

[Maxheader]

5. Hedge funds..

Don't those words usually turn up in corps under investigation by the fed...?

For lies about viability, roi on investments..

[melm00se]

6. I recall what one of my economics

money that is not in motion is just a pile of paper and does no one any good.

Money must be in motion for it to be useful.

While there are certainly some hedge funds that are questionable, their purpose is a contrarian one. They "hedge" against the common investment wisdom.

Are they always right? No.

Are they always wrong? No.

Hedge funds "bet" against the house. If you have ever been to a casino, people who best against the flow are not really popular. Watch the dynamic around a craps table sometime. All the players cheer themselves on but the one person (out of 50 or 100) who dares to lay their money on the "Don't Pass" line is the instant shithead and pariah.

[discntnt_irny_srcsm]

10. IIRC, "Don't Pass" has lowest house edge of any single bet

About 40 years ago my mother-in-law to be insisted on taking us to the casino for a few games and brunch. We went to the craps table. I bet don't pass for the table minimum 5 or 6 times and mostly won being up about $35. When the dice were passed to me, she insisted that don't pass would be betting against myself. I relented and moved my bet to the pass line... and lost. I left the table with enough to pay the valet parking. That was my last bet in a casino.

[melm00se]

15. IIRC, the don't pass line

is just slightly better (measured in basis points).

blackjack, with basic strategy, is best in the house.

[discntnt_irny_srcsm]

16. Agreed n/t

[Miguelito Loveless]

7. No way this can backfire

given the spotless, ruthless ethical standards of banks over the last century.

Oh, wait...

[edhopper]

8. 2008 is calling

it wants it's gross economic mismanagement back.

[yaesu]

11. the fake economy. nt

[jaxexpat]

12. Hedging is day trading when you do it every day.

[groundloop]

13. So much for markets rising.... stock market is taking a dump right now.

Looks like reality has once again set in as far as how bad the pandemic is going to get thanks to any lack of leadership from our dear leader.

[Lock him up.]

14. In other words, privatize profits, socialize the costs.

Same old, same old.

CEOs get golden parachutes, buy back stocks with our money to pay themselves BIG bonuses and proceed to destroy their markets so the have nots get stuck having to payback a ton of interests on their national credit card...

The wild wild west... indeed. Where's the Sheriff?

[modrepub]

17. Have We (Democrats) Leaned Anything?

Next time we the taxpayers have to bail out the financial system can we at least kick out the CEOs, prosecute the guilty, and dilute share owners so this never happens again? I'm a firm believer in Taleb's "skin in the game" concept. If you take federal/state/local tax $ to save your company, the owners and board members agree to walk out the door with a cardboard box of their belongings and no golden parachute.

[NickB79]

18. Lol, down 700 at 4pm EST