More Bad News Out Of JPMorgan About The State Of Housing And The Boycott Of The Rigged Market

Tyler Durden's picture

Another day, another preannouncement by a major bank confirming that the housing bubble has not only popped but that traditional bank activity, namely the lending of mortgage loans to consumers  - who aren't borrowing not because they have no access to the loans but because real estate prices pushed up by institutional investors who don't need mortgage loans, are simply idiotic - is dead and buried.

  • JPMORGAN SAYS FOR CONSUMER & COMMUNITY BANKING HIGHER LEVELS OF MORTGAGE INTEREST RATES ARE EXPECTED TO CONTINUE TO HAVE A NEGATIVE IMPACT ON VOLUMES
  • JPMORGAN SAYS EXPECT PRETAX PRODUCTION LOSS OF $100-$150 MILLION IN 2Q14 AND PRETAX MARGINS TO BE NEGATIVE IN 2H14 FOR MORTGAGE BANKING
  • JPMORGAN SAYS EXPECT NET SERVICING REVENUE OF $600-$650 MILLION IN 2Q14 AND DECLINING BY APPROXIMATELY 10% PER QUARTER FOR H2 FOR MORTGAGE BANKING
  • JPMORGAN CHASE & CO EXPECT SECURITIES SERVICES REVENUE TO INCREASE IN 2Q14 BY APPROXIMATELY $100 MILLION COMPARED TO 1Q14
  • JPMORGAN SAYS MARKETS REVENUE TO DATE REFLECT A CONTINUED CHALLENGING ENVIRONMENT AND LOWER CLIENT ACTIVITY LEVELS

That said, we can't wait for the Fed to continues its disinformation campaign reporting that week after week loans issued by US banks are increasing.

But the punchline:

Based on Markets revenue results to date, which reflect a continued challenging environment and lower client activity levels, expect 2Q14 Markets revenue to be down approximately 20%+/- versus 2Q13.

With recoveries like these, who needs depressions? As for JPM's latest disappointment, just blame it on the 4 inches of rain in New York this week.

 

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bania's picture

I'm richer than you?

eatthebanksters's picture

Well, Jamie claims he's smarter than you...(I really wanna say 'bitchez')

SheepDog-One's picture

Sure....so now rates are set to rise and the tapering is to speed up? Baloney.

maskone909's picture

MR Yellen is on the horn with Belgium as we speak. 

every taper announcement knocks yields down further and further as belgium the straw buyer purchases more and more trash.

cant last too much longer?  right?

Winston Churchill's picture

Not too worry.
Zaire will double their purchase to $3 per month.

orez65's picture

"Zaire will double their purchase to $3 per month."

Closely followed by Cuba, which is increasing their purchases to $2 Billion Cuban Pesos per month.

Unfortunately Cuban Pesos are not internationally exchangeable for anything! 

McMolotov's picture

The economy isn't dead, it's pinin' for the fjords!

Charles Nelson Reilly's picture

fuck it... who needs a house anyway?

SpanishGoop's picture

I heard they are already moving in on the trailer market.

Your cardboard box will be next.

 

Eternal Complainer's picture

Then just a colostomy bag and a rascal scooter.

101 years and counting's picture

in other words: jpm now short stocks.  expect bad news out of ukraine this w/e.  "markets" about to go into tailspin.

buzzsaw99's picture

That's not right.

How can the price be going down?

Something's wrong.

Where's Wilson?

What are they doing here?

- They're selling, Mortimer.

- Why, that's ridiculous.

- Unless that crop report...

- God help us.

I told you we shouldn't have committed everything, you asshole. [/trading places]

Critical Path's picture

Way to get out of dodge Ben!

waterhorse's picture

"JPMORGAN SAYS MARKETS REVENUE TO DATE REFLECT A CONTINUED CHALLENGING ENVIRONMENT"

 

'Challenging environment' is bankster-speak for ?

cro_maat's picture

Banker speak for:  "We are running out of ponzi schemes that work."

Yen Cross's picture

  WTF? "Based on Markets revenue results to date, which reflect a continued challenging environment and lower client activity levels, expect 2Q14 Markets revenue to be down approximately 20%+/- versus 2Q13."

     The next time I apply for a line of credit or loan I'll be sure and tell my banker that my profits could be 20% +/- for the loan duration, and I'd like the "pick your payment" option...

buzzsaw99's picture

just tell him that your firm lost money last quarter and you need a loan to pay out ridiculous upsized bonuses. he'll understand.

Yen Cross's picture

   lol Buzz. I was trying to figure out the payroll angle and you did it perfectly ;-)

logicalman's picture

alternatively, you could say you were taking out a loan to pay the interest on a previous loan.

Notsobadwlad's picture

They are probably just using their other lines of business to obscure the mark to equity market losses that for the past 6 years had been mark to market equity market gains and counted as the bulk of their profits.

Cryogenic's picture

So if a bank mentions "PRETAX PRODUCTION LOSS", does this mean the are classified in the manufacturing sector instead of the financial sector?

If it is manufacturing sector does this mean the produce poverty?

SpanishGoop's picture

A bankster always thinks he "produces" something the whole world is waiting for.

 

q99x2's picture

Arrest Jamie Dimon.

chunga's picture

Cut off his horns too.

Yen Cross's picture

  The only way to kill Dimon or Blankfien is to lure them into a jacuzzi full of hookers and coke.

  Then drop a really cheap *toaster, (preferably Chinese made) into the water.

 * plugged in

Conax's picture

No concern for the working girls?

That's just mean, man.  They dit unt do nuffin.

doggis's picture

SEEMS TO ME THIS IS AN ORGANIZED AND WELL DESIGNED PLAN BY THE "FOIE GRAS' BANKSTERS - TO KILL SMALL COMMUNITY BANKS - THEREBY INCREASING THEIR OLIGOPOLY MARKET SHARE.

COMMUNITY BANKS LIVE AND DIE BY THE SPREAD OF RESPONSIBLE MORTGAGE LENDING AND INTEREST RATES.

THE FED IS KILLING THE SPREAD FOR THE SMALL BANKS. THE FED IS KILLING LENDING WITH FREE MONEY TO HEDGE FUNDS TO DRIVE UP HOUSING PRICES WITH ALL CASH PURCHASES.

 

THE IDEA HERE - TRULY GUT THE COMMUNITY BANKS ONCE AND FOR ALL!!!

 

 

ms8172's picture

Should we expect more people plunging from your buildings?

Rough-Trader's picture

Why did they dump this news on Friday afternoon when war is about to breat out,

and it's May.  They want to sell?  What's the catch here?

starman's picture

No no no no GM is to save the merrikan dreams with housing built out of truck containers! Seriously!

 

 

 

/s

Rising Sun's picture

I live in a shipping container.

 

FUCK HOUSING!!!

novictim's picture

How do you afford such a luxury?
I have to live under a bridge.
Damn it, its goat for dinner almost every night!.

blue gkm's picture

everbody move to gary indiana houses 4500 to 5000. seriously look it up i dare you???

AdvancingTime's picture

I have owned an apartment complex for many years and we are currently experiencing the largest number of vacancies we have ever had. Many houses in the area are empty or under leased. In 2005 and 2006 prior to the housing collapse many people were looking at second homes, for investments or as a vacation getaway.

Today not only have many people shed the extra home many have doubled up with family or friends reducing the need for housing. We are pushing on a string and calling it demand when someone who can barely pay the rent is encouraged by the government to buy a house they can neither afford or maintain. We have a shortage of "qualified" buyers and renters. More on how low interest rates are hurting housing in the article below,

http://brucewilds.blogspot.com/2013/12/super-low-interest-rates-disservi...