Battle of "number two" US cities: LA, Chicago, SF, DC, Houston or Boston? (live, better)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Banks, not so much. Chicago has the commodities market as its own as well as the derivatives market.
Derivatives are the backbone of the financial industry. They are the Alpha, the Omega. Light-Bringer, Destroyer of Worlds. The most complicated of all financial instruments.
It's also dominated by a wholly-owned Chicago firm. CBOT/CME.
They're also looking to buy the NYSE. To give you an idea of the volume and scale of things, Chicago's derivative industry could buy the entire New York financial scene with the spare change it could find in its couches.
I love that famous Chicago banter
The "wholly owned Chicago firm CBOT/CME" is traded on Wall Street: NASDAQ: CME
CME Group (NYSE:CME): Downgraded at JP Morgan and Sanford Bernstein
Two firms are out cautious/negative on CME Group (NYSE:CME):
- Sanford Bernstein downgrades CME to Market Perform saying they will re-evaluate 2009-12 future volume growth rate estimates based on revised outlook for the macroeconomic and financial markets and our reduced reliance on their regression-based future volume forecasts, which have broken down over the past 2 quarters. New price tgt is $200 for CME (and $80 for ICE which is also discussed in the note).
The biggest concern they have with regards to the CME is the weakening volumes the firm has seen in its interest rate futures complex. The credit markets have undergone a structural shift during the past 6-12 months in which securitization volumes have virtually dried up and corporate debt issuance (save for bank issuance guaranteed by the FDIC) has remained moribund since the failure of Lehman Brothers in September. Given these fundamental changes in the credit market, it will likely take some time before volumes in the CME's interest rate complex begin to recover to pre-LEH bankruptcy level.
Based on their updated macroeconomic forecast in which they do not expect to see an improving fixed income/credit environment until at least H2 '09, a domestic economic recovery until 2010, and sustained improvement in the domestic equity markets until 2010, they have adjusted their volume growth forecasts for all of the futures products. For the most part, their more negative macro-economic outlook has resulted in a reduction of our volume forecast for most futures products. This does not bode well for the profit potential of either CME or ICE.
Last edited by advocatusdiavoli; 05-23-2009 at 10:32 AM..
Originally Posted by 18Montclair And so are most of the major players in Chicago's Finance Sector.
Guess what, downtown1? CME Group Inc. - NASDAQ: CME
And that proves? Nothing. Absolutely nothing. Everyone knows America's major stock exchanges are in New York City. Chicago is the world leader in commodity and derivatives trading.
What I call an ignorant statement is when your argument tends to ignore all the researches & studies by economic experts & academic scholars.
You still haven't shown me any study that talks about LA's role in influencing the global economy. Posting the rankings of agglomerated GDPs does not mean anything. And answer me a question whether China will be considered superiority over America if its GDP surpasses the U.S in the future. ...hey, LA's economy is almost twice the size of London's ..do the people care?
Quote:
Originally Posted by advocatusdiavoli
You see, you can't even have a civilized argument, you just called my arguments ignorant. Civility is another reason why Chicago could never be number two or even three in the nation.
And who cares? Many of F100 companies of yesterday are dying dinsoaurus today. Revenue is revenue no matter if produced by F100 companies or street vendors. A smelly, dirty dollar is worth as much as fresh pressed one. It's a terrible sin when poeple mix economics with ideology or sentiments. What really counts are the actual numbers and those as you know, are in LA favor...
Plug the $200B gap between LA and Chicago and then we'll talk
Banks, not so much. Chicago has the commodities market as its own as well as the derivatives market.
Derivatives are the backbone of the financial industry. They are the Alpha, the Omega. Light-Bringer, Destroyer of Worlds. The most complicated of all financial instruments.
It's also dominated by a wholly-owned Chicago firm. CBOT/CME.
They're also looking to buy the NYSE. To give you an idea of the volume and scale of things, Chicago's derivative industry could buy the entire New York financial scene with the spare change it could find in its couches.
While I won't disagree that Chicago is the king of derivatives and commodities. The CME isn't about to buy the NYSE and Chicago is not on the same level as New York on the financial scene. Chicago often gets a bad wrap on this board, but there's no need to go insane and start saying things like "Chicago's derivative industry could buy the entire New York financial scene with the spare change it could find in its couches."
Yes, Chicago has the largest volume of trades on the planet, but the real sources of power are in New York City and London.
What I call an ignorant statement is when your argument tends to ignore all the researches & studies by economic experts & academic scholars.
You still haven't shown me any study that talks about LA's role in influencing the global economy. Posting the rankings of agglomerated GDPs does not mean anything. And answer me a question whether China will be considered superiority over America if its GDP surpasses the U.S in the future. ...hey, LA's economy is almost twice the size of London's ..do the people care?
Then don't do it. There is no reason for name calling on this board.
Again, I am no really concerned with studies and research. Economist are economist and economy is economy. I would like to see those "scholars" actually run any of the corporations they like to talk about.
I am more concerned with real, factual ouput and LA's output is at this point approx. $200B larger than Chicago's. Can you plug that gap with studies and research? Maybe this is what we should do in the US economy, plug our deficit with some great studies? Call Obama...
Why are you ignoring the data? I thought Midwesterners were supposed to be really down-to-earth?
Last edited by advocatusdiavoli; 05-23-2009 at 10:48 AM..
And that proves? Nothing. Absolutely nothing. Everyone knows America's major stock exchanges are in New York City. Chicago is the world leader in commodity and derivatives trading.
Agreed. The whole argument has shown how irrelevant LA is in the global market.
Quote:
Originally Posted by tmac9wr
And that proves? Nothing. Absolutely nothing. Everyone knows America's major stock exchanges are in New York City. Chicago is the world leader in commodity and derivatives trading.
Chicago often gets a bad wrap on this board, but there's no need to go insane and start saying things like "Chicago's derivative industry could buy the entire New York financial scene with the spare change it could find in its couches."
And that's exactly why Chicago gets a bad rap on this board...
Show that $200bil gap to the economic experts & world-renowned scholars who
rank LA as a beta city. Who knows they might give back LA the alpha status
Quote:
Originally Posted by advocatusdiavoli
Because I am no really concerned with studies. I am concerned with real, factual ouput. LA's output is $200B larger than Chicago's. Can you plug that gap with studies and research? Maybe this is what we should do in the US economy, plug our deficit with some great studies?
Why are you ignoring the data? I thought Midwesterners were suppose to be really down-to-earth?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
...hey, LA's economy is almost twice the size of London's ..do the people care? 
