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After Shedding its "Too-Big-To-Fail" Shackles, GE Will Double Your Money
Let’s cut right to the chase: I’ve been a fan of General Electric Co. (NYSE: GE) for years …
In fact, for decades.
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Shah is considered one of the world's foremost experts on the credit crisis.
He not only called for the implosion of the U.S. financial markets, he also predicted the historic rebound that began in March 2009. Shah's open letters to the White House, Congress, and U.S. Treasury secretaries outlined detailed policy options that have been lauded by academics and legislators alike.
His experience and knowledge uniquely distinguish Shah as a "trader's trader." Shah ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When the OEX (options on the Standard & Poor's 100) began trading on March 11, 1983, Shah was working in the pit as a market maker. And along with other traders, he popularized what later became known as the VIX (volatility index). He left Chicago to run the futures and options division of the British banking giant Lloyd's TSB.
Shah went on to originate and run a packaged fixed-income trading desk for Roosevelt & Cross Inc., an old-line New York boutique bond firm, and established that company's listed and OTC trading desks. Shah started another hedge fund in 1999, which he ran until 2003, when he retired to develop land holdings with partners.
Today Shah is the editor of Capital Wave Forecast and Short-Side Fortunes. He also writes our most talked-about publication, an e-letter called Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played, and how to win it.
Shah studied economics and psychology at the University of California, Los Angeles.
Chapter Three ended with the rise of J.P. Morgan and how he used chronic boom and bust cycles to his own great advantage. That brings us to the Panic of 1907.
The Panic of 1907 was a seminal event in the history of banking. It spawned the Federal Reserve System – but not immediately. There would be a long cloak-and-dagger affair before the Federal Reserve Act was signed into law – while Americans were distracted – two days before Christmas, on December 23, 1913.
How Congress was duped by many of its own, and how the public was blindsided into believing their government was creating a safer banking system is a testament to the power of private banks to run and, for their own profit, ruin America.
Here's how it all happened.