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Investment Banking is Legal and Poker is Gambling?

by Roy Winston |  Published: Apr 30, '10

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While sitting and playing online the other day I was watching the Senate hearings on the banking crisis and listened to a few hours of bankers from Goldman testifying. I really couldn’t believe it. At best they are low life used car salespeople, and I apologize in advance to all used car salespeople. At worst they are lower than common criminals, stealing from unsuspecting investors. It will be interesting to see how it all shakes out.

If the US Congress and Courts calls poker gambling, what in the world is what these “investment bankers” do? The only difference between high stakes poker and what these guys were doing is that the stakes are much higher and they were using other people’s money.

When compared to black jack, craps and roulette, I believe you have a larger percentage of winners than in the derivatives market. The banker’s who promoted a company to many of their investors while shorting it themselves, were the winners, and many of us watched our investments go down the drain. The huge bonuses they received came from the profits of just plain ripping off their clients. Then we the taxpayers bailed them out because they were too big to fail. What utter nonsense. It was kind of like a winner take all poker tournament with a stacked deck.

I hear they may be hiring at Goldman Sachs, as it would appear they should have a lot of vacancies pretty soon, and it appears that the one thing Democrats and Republicans can agree on is that those responsible at the various institutions should be held accountable.

Roy Winston finished 16th in 2007 Card Player, Player of the Year race. He won the WPT Borgata Poker Open and finished the year with well over $2 million in tournament poker winnings. Roy plays online exclusively at Full Tilt. For more information on Roy Winston, you can visit his website: www.oraclepoker.net or send an email to: winstonpoker@yahoo.com with your questions or comments. The contents presented herein on this blog are purely the opinions of Roy Winston, and are not intended to reflect or promote the opinions of any other person, group, or entity. If you like what I write than thanks for reading, and if not well, thanks anyway.

 
Any views or opinions expressed in this blog are solely those of the author and do not necessarily represent those of the ownership or management of CardPlayer.com.
 

Comments

L2K4FC
12 years ago

bmpek : Are you really trying to compare a wall street banker who is only interested in making money for himself with a doctor whose motivation is to save a very sick person's life? Sorry, I just don't see the correlation there.

Roy, great post. It's too bad that we aren't able to get these criminals treated appropriately. Where is the "hope" and "change" we were promised?

 
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BigDoggy
12 years ago

Warren Buffet, among others, has defended Goldman Sachs. Most of the media reporting on the issue does not understand financial matters and as a result the actions of Goldman are not correctly portrayed to the general public.

Roy, are you aware that most of the bailout money has been repaid and the government has made money on many of the firms that were bailed out? Goldman Sachs has repaid their bailout money.
http://www.washingtontimes.com/news/2010/apr/27/treasury-has-profited-from-big-bank-bailouts/

 
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L2K4FC
12 years ago

BigDoggy, you said, "Roy, are you aware that most of the bailout money has been repaid and the government has made money on many of the firms that were bailed out?" Its great that after they screwed things up so badly that they were able to repay the taxpayers who saved their butts. The bottom line is that had the financial sector been acting responsibly in the last decade there would have been no need for a bailout. Instead the rule of thumb is "Greed is good, greed works". What is the net affect? The treasury makes some money so it gets sent where? Back to the investors who lost their retirements, their pensions, their homes???? Nope!!! The end result is that there are only two groups who benefit from this: Wall Street Execs, and budgets of certain government agencies that will be consuming the profit from the bailout. The rich get richer and the big government gets bigger. How convenient, except for the average American who gets absolutely nothing out of it. Of course Buffett is going to defend GS, how could he not?? Your position is oversimplification at very best my friend.

 
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anttri
12 years ago

Hi Roy, I would like to start out by saying I read all your blogs and have a great deal of respect for you as a poker player and some of your views. But on this view you are way off. If you had just a small idea of what the Senators were asking you would know they didnt have a clue on what they were asking. They did not know what a market maker is, and obviously don't know what a hedge is. Senator Levin kept asking Mr Viniar how much they were short, and didnt want to hear how much of a long position they had. Now a market maker is a person or firm that has to take both sides of trades and is constantly hedging their bets, and we are talking sophisticated investors that know what Goldman is supposed to do. By the way if there was such a big problem, how come the firms involved didnt complain. I am not about to defend a firm that is gulity, but in this case they will need alot more than what they have to get Goldman. So Roy, the financial sector was givin money, correct (some of the firms didnt ask for the money and it was forced on a few of them, including Goldman). But if the country didnt bail out these banks, there would have been a total collapse in the system and you would have not been happy. Roy you are an intelligent individual and I can go on all day talking about this. I will stop you at the Borgata the next time I see you there and we can discuss all of these topics in depth, lol. This all about politics, and these senators will make anything that is brought in front of them sound bad. They are a bunch of morons!! They dont have a clue!! They are scared for their jobs. Senator Charles Schumer showed up at my kids little league opening day parade in the middle of long island to speak for 3 minutes. Obviously he is afraid of what is going to happen in november. Good luck Roy, you are due to win a big one, DO IT!!!!

 
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