In a spectacularly candid interview with the BBC on Tuesday, stock trader Alessio Rastani gave away a secret that may make people even more suspicious of the stock market: Investors don't care if the economy crashes. In fact, they may be hoping for it.
Rastani, who spoke to the BBC about a plan to prevent a financial crisis in the Eurozone that would likely impact the global economy, told the rather disheartened hosts that he expects the European market to crash hard... and soon. When asked his opinion on the Eurozone rescue plan, which is expected to involve a 50 percent write-down of Greece's massive government debt, Rastani bluntly said the government plan doesn't particularly concern him.
For most traders, it's not about... we don't really care that much how they're going to fix the economy, how they're going to fix the whole situation, he said. Our job is to make money from it.
Rastani explained that there is actually a lot of money to be made from an economic crash if an individual is prepared to do so.
Personally, I've been dreaming of this moment for three years...I go to bed every night and I dream of a recession, he said.
Rastani said the global economic crisis is like a cancer, one which is likely to grow if people simply expect that governments will be able to solve the problem.
The governments don't rule the world. Goldman Sachs rules the world. Goldman Sachs does not care about [the Eurozone] rescue package, he said.
Stock traders like Rastani are some of the biggest donors to the current Republican presidential frontrunners in the U.S., such as former Massachusetts Gov. Mitt Romney. Many of those same Republicans are adamant about repealing the Dodd-Frank financial reform law that was aimed at preventing a financial crisis like the one that impacted the U.S. economy in 2008.