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Scam??? Not really. It's "good" business. Anybody can get a card - the
credit check is poor or non-existent. Therefore, the good risks carry the
bad risks. And it's a captive market which obviously will bear the price -
when was the last time you met someone with no plastic in their pocket?
There is one way to avoid the rate - pay the balance in full each month.
Regards,
Mike
----- Original Message -----
From: "John Nelson" <trader@xxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, October 08, 2001 6:27 PM
Subject: RE: [RT] VERY HEAVY BLK activity ON MSFT
>
> Just like the credit industry (credit cards, home loans, etc). Consider
> the penalty and membership fees for some of the credit cards out there,
> not to mention the interest rates. The cost of money is 2.5% and yet
> card issuers are charging anywhere from 13-19%.
>
> What a scam!
>
> -- John
>
>
> > -----Original Message-----
> > From: Infernal Elk [mailto:infernalelk@xxxxxxxxxxxxxxxx]
> > Sent: Saturday, October 06, 2001 11:47 PM
> > To: realtraders@xxxxxxxxxxxxxxx
> > Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> >
> >
> >
> > >> NW: No, they are loaning the stock so they can earn the stock
> > loan fees such
> > >> as interest on the credit balance. This source of income
> > often exceeds the
> > >> commission end of the biz. Given the recent deep discounts on stock
> > >> commissions, I am sure the stock loan fees and interest they
> > rip off from
> > >> the public is more important than ever as a source of income.
> >
> > <unlurk>
> >
> > having worked in back offices on & off in the past, i have to say that
> > stock loan (equities) & repos ("fixed" income) can be a *substantial*
> > source of financing at relatively little risk to a large firm,
> > depending on the sophisication of the software systems that enable the
> > stock loan or repo desks (stock loans are essentially equity "repos")
> > to manage the huge volumes of stock in & out of the firm's box hourly.
> >
> > some of the stock loan desks i have seen rival some proprietary
> > trading desks in number of personnel. and the stock loan folks are
> > just as busy, sometimes busier!!!
> >
> > it's not as sexy as the proprietary side, but in bad years, the stock
> > loan & repo desks subsidize the proprietary traders' bonus pools -- no
> > joke! i've seen it happen often enough at bonus time. stock loan is
> > steady money.
> >
> > - *lk
> >
> > <relurk>
> >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
> To unsubscribe from this group, send an email to:
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>
>
>
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>
>
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