JPMorgan... Or Long-Term Capital Management?
This, too, is why Jamie Dimon is richer than you:
Compare and contrst to the performance of LTCM just before it had to be bailed out, ushering in the modern era of of Too Big To Fail.
(22 votes)
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Greenspan should have let market forces operate in 1998, BernanQE will have no choice this time.
No choice?
What makes you think that a man, whose ONLY trick appears to be easing liquidity in one way or another, will attempt to solve this in any other way this time around?
Bernanke will print till the cows come home, and then some.
@EscapeKey
The Law of Diminishing Returns is harsh and unforgiving. The marginal utility of BernanQE's printing is dropping each day. It's a Sissyphian task that will end badly....
LTCM goes under and over 50 hedge funds spring up to take their place. Lemmings squared.
"The year-to-date losses reported by the
CIO climbed from $719 million in March, to $2.1 billion in April, to $4 billion in May, to $4.4
billion in June, and then to $6.2 billion in December.566 Since JPMorgan Chase transferred
many SCP index positions to its Investment Bank on July 2, 2012, the total amount of losses
associated with the Synthetic Credit Portfolio will likely never be known."
From page 87 of the Senate Subcommittee Report
http://www.hsgac.senate.gov/download/report-jpmorgan-chase-whale-trades-...
JPM already got bailed out for this. Those "offsetting trades" Jamie expained as why they didn't take big losses on the quarter were JPM selling overpriced garbage to the Fed. QE3 and QE4 were in part a response to the havoc that Jamie Dimon wreaked on the system in this trade. ANd the havoc is not getting better. It is festering.
On a LONG enough TIMELINE... CAPITAL MANAGEMENT drops to zero...
... and JPM will KEEP GETTING BAILED OUT.... until the first trash can comes through your (and my) front window. At that point, the 10 seconds to call 911 would be better spent loading double-ought.
just 'POINT & CLICK'...
I am enjoying watching Jamie do the "roper doper"...
I'm betting JPM finishes up on the day at a new multi year high... just because
When does Blankfein's Jewish bank get to buy up JP Morgan for pennies on the dollar?
Not gonna happen. JPM is the opposite face of the FED in the Janus sandwich. JPM is the commercial trash collecter/recycler for the FED. If Goldman Fags were to buy out JPM they could no longer be a rogue dealer. Try to remember, Goldman is akin to Madoff without the concern of being carted off to prison.
Sometimes trading incurrs losses. That's the nature of the game. Companies like JP Morgan generate most of their profits from providing world class services to investment professionals and governments. Their trading desks are reserved for the brightest Ivy League graduates, and losses are more than compensated for by the stellar trading performance of other desks.
Thanks MBD. You owe me a keyboard. My coffee sprayed all over the place.
If he changed his name to BillionDollarBonus he might be believable.
"world class investment services" include the website being unavailable for hours at a time due to hacking incidents
http://www.zerohedge.com/news/2013-03-12/chasecom-hacked
Luckily the idiot is only being snarky, otherwise we'd have to go after him with torches and pitchforks.
Makes you wish for the good ole days of Vlad the Impaler.
Or 100trillionZimbabweDollarBonus_
Their 'MILLION DOLLAR BONUSES' are earned by their relentless capacity to shill...
MDB - you are either a master of sarcasm or a day trading ad writer.
Wry humor to gut-busting giggles.
Oh MDB, you never fail to provide the smiles.
Man, I have missed you!
Zero Hedge! ALL YOU NEED TO LOOK AT
No one focuses on what prices are being paid by the gov't for the assets from the banks. The real joke behind the scenes!
Don't forget the JP Morgan Chase aka the Chase part = The Rockefellers agents for you know who in Amerika plus owners of big oil.
What's sad is when you think of all the areas on the planet that need real capital investment, these guys throw tens of billions of dollars at this synthetic, made-up, bullshit, hypothetical, derivative paper, instruments.
Diminishing returns? How do you judge that?
If those numbers started shrinking, one could always modify the model.
Sort of like the investment banks calculate risk.
and Capital
Banks make money screweing taxpayers. Banks are like Carnival Cruise lines. You sign your life away & waive any rights, get on a rusting hulk of a ship, get lousy food that the pigs on the ship love, get plastic bags to shit in.
Maybe Carnival is on to a new fad. Think how much water can be saved by taking a shit in plastic bags. Climate control with a twist.
are you sayign we should throw Barnanke's dead nakid body into the town square? Or this that his wife's job?
He will have plenty of time to write with his syphilitic brain capacity.
Or, maybe not.
An Exponential Bitch. Whether at 3% or 30%, just a matter of time. Sooner or later the Junkie hits the wall.
Really, it's probably already happened, the facade is all that is left.
"There is no means of avoiding a final collapse of a boom..." L von M.
The fact is, none of this was a 'mistake' that people are now trying to figure out how to repair....it was a planned takedown from the beginning and now they're in the 'monetize the debt' phase, and that's always the last phase.
The money supply (M0) will continue to increase. What may change is the reason given for the need to continue. Death by hyperinflation is the only way a fiat currency ever dies.
Correction: hyperinflation is the only way a fiat currency ever lives
Too big to fail started earlier than 1998..The congress critters should have let market forces work back in 1979 when they bailed out Chrysler. Market forces are great until they become an inconvenience to TPTB.
Not to mention the dead Kennedy's.
Jello Biafra for President! He hates Nancy Pelosi too...
With this kind of financial news DK is the only appropriate music (California Uber Alles, Holiday in Cambodia, etc). Maybe we can get Jello to update lyrics, like "Viva las HFTs".
Too big to fail started earlier than 1998..The congress critters should have let market forces work back in 1979 when they bailed out Chrysler. Market forces are great until they become an inconvenience to TPTB.
TBTF started much earlier than 1979...
http://en.wikipedia.org/wiki/Reconstruction_Finance_Corporation
The RFC was bogged down in bureaucracy and failed to disburse much of its funds. It failed to reverse the growth of mass unemployment before 1933. Butkiewicz (1995) shows that the RFC initially succeeded in reducing bank failures, but the publication of the names of the recipients of loans beginning in August 1932 (at the demand of Congress) significantly reduced the effectiveness of its loans to banks because it appeared that political considerations had motivated certain loans.
+1
& All one needs to know about LCTM is that its principle shareholders were NOBEL PRIZE WINNING ECONOMISTS, Myron Scholes and Robert Merton.
If I were a statistician, I would posit a correlation between Nobel Prize Winners and Moronic con artists.
Monetary policy has nothing to do with how poorly a bank performed - it concerns the overall economy; if it turns out that JP Morgan isn't managing themselves as we'll as thought, and if that affects the overall economy, then Bernanke will need to do more to help the recovery.
The best way for bernake to help the US economy would be to kill himself.
LOL Hari Kari with a letter opener?
Taking bids to be Bernanke's second.
True poetry would be Ben diving headfirst into a fully-powered-up printing press.
Do more to help the recovery? What has he done to help at all? All he has done is print money which makes the spectre of deflation breathe that much harder down our necks. Inflating bubbles was the problem in the first place. Equilibrium will be had whether by consent or conquest, er, I mean, free market forces.
True poetry would be Ben diving headfirst into a fully-powered-up printing press.
The resulting FRNs would truly be BernankeBux.