Making Money on OWS

[Mr. Big Dog 10,747]

A Letter from Goldman Sachs

Concerning Occupy Wall Street

NEW YORK – The following is a letter released today by Lloyd Blankfein, the chairman of banking giant Goldman Sachs:

Dear Investor:

Up until now, Goldman Sachs has been silent on the subject of the protest movement known as Occupy Wall Street. That does not mean, however, that it has not been very much on our minds. As thousands have gathered in Lower Manhattan, passionately expressing their deep discontent with the status quo, we have taken note of these protests. And we have asked ourselves this question:

How can we make money off them?

The answer is the newly launched Goldman Sachs Global Rage Fund, whose investment objective is to monetize the Occupy Wall Street protests as they spread around the world. At Goldman, we recognize that the capitalist system as we know it is circling the drain – but there’s plenty of money to be made on the way down.

The Rage Fund will seek out opportunities to invest in products that are poised to benefit from the spreading protests, from police batons and barricades to stun guns and forehead bandages. Furthermore, as clashes between police and protesters turn ever more violent, we are making significant bets on companies that manufacture replacements for broken windows and overturned cars, as well as the raw materials necessary for the construction and incineration of effigies.

It would be tempting, at a time like this, to say “Let them eat cake.” But at Goldman, we are actively seeking to corner the market in cake futures. We project that through our aggressive market manipulation, the price of a piece of cake will quadruple by the end of 2011.

Please contact your Goldman representative for a full prospectus. As the world descends into a Darwinian free-for-all, the Goldman Sachs Rage Fund is a great way to tell the protesters, “Occupy this.” We haven’t felt so good about something we’ve sold since our souls.

Sincerely,

Lloyd Blankfein

Chairman, Goldman Sachs

[scandal 951]

[mawilson 2,133]

I'm surprised there are no unemployment index futures or ETFs (other than Intrade, which probably has a contract for that.)

Seriously, if we can trade volatility, why not the unemployment rate?

[Mr. Big Dog 10,747]

I'm surprised there are no unemployment index futures or ETFs (other than Intrade, which probably has a contract for that.)

Seriously, if we can trade volatility, why not the unemployment rate?

I knew you'd appreciate the general idea presented here.

[scandal 951]

I'm surprised there are no unemployment index futures or ETFs (other than Intrade, which probably has a contract for that.)

Seriously, if we can trade volatility, why not the unemployment rate?

Who says there isn't? CME introduced Non Farm Payroll futures in 2008.

Of course, there is zero open interest and zero volume so clearly the marketplace doesn't share your view that this is such a great product.

http://www.cmegroup.com/trading/economic-events/economic-events/nonfarm-payroll_contract_specifications.html

Nonfarm Payroll Futures

Contract Size $25 x change in Total Nonfarm Payrolls (NFPs) as published by BLS

Quote Quoted in thousands, e.g., May 2007 contract would have settled at +157, representing change in Nonfarm Payrolls (in 000s) from April to May 2007. Each minimum price fluctuation of 1 point (1,000 jobs) = $25.00

Contract Months Contracts available for all NFP releases, listed on the Monday after the previous month’s release

Trading Hours Offered exclusively on CME Globex electronic trading platform on Sundays through Thursdays from 5:00 p.m. to 4:00 p.m. Central Time next day

Last Trading Day Trading in an expiring contract concludes at 7:25 a.m. CT on the first Friday of the contract month or such other day on which NFP figures are scheduled to be released by the BLS.

Final Settlement Procedure Settled in cash based on change in seasonally adjusted total NFPs reported by U.S. Dept. of Labor, Bureau of Labor Statistics Table B-1. Employees on nonfarm payrolls by industry sector and selected industry detail, seasonally adjusted change in total nonfarm payrolls for month prior to named contract month.

Strike Prices N/A

Price Limit Price limit of ±200 points (200,000 jobs = $5,000) applied to the final settlement price from previous business day's price settlement.

Minimum Block Size 20 contracts

Exchange Rule These contracts are listed with, and subject to, the rules and regulations of CME.

[mawilson 2,133]

Who says there isn't? CME introduced Non Farm Payroll futures in 2008.

Cool!