Financial powerhouse Morgan Stanley reported a huge 60% first quarter profit, primarily from its trading desk. The company is focusing its business on its Wealth Management division and as been able to show tremendous progress as new liquidity in the global markets has sparked massive trading by its most wealthiest clients. Morgan Stanley is one of a number of the major Wall Street financial houses which are showing massive first quarter earnings as a result of their trading activities. Morgan Stanley Reports Huge Profits
Economists are not surprised that the Wall Street financial giants are doing so well. Many had anticipated that it would simply be a matter of time before the liquidity injected into the market as a result of the bond buying programming, first initiated by the United States Federal Reserve and then the recently initiated by the European Central Bank would create a windfall for Wall Street as major wealthy investors positioned themselves as well as their companies to use the liquidity to their advantage.
Sam Tabar (vimeo.com) has found that the result of the quantitative easing policy initiated by the both the United States and Europe is a large amount of cheap money which major companies can use to leverage even larger capital transactions. Without having to put their own money at risk, financial giants such as Morgan Stanley are able to engage in larger and more riskier trades, which will generate an even larger payoff for the companies and investors.