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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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Fri, 05/02/2014 - 16:26 | 4721699 bania
bania's picture

I'm richer than you?

Fri, 05/02/2014 - 17:13 | 4721866 eatthebanksters
eatthebanksters's picture

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

Fri, 05/02/2014 - 16:27 | 4721703 SheepDog-One
SheepDog-One's picture

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

Fri, 05/02/2014 - 16:28 | 4721712 Charles Nelson ...
Charles Nelson Reilly's picture

get to work... Mr. Janet

Fri, 05/02/2014 - 16:31 | 4721724 maskone909
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?

Fri, 05/02/2014 - 16:43 | 4721761 Winston Churchill
Winston Churchill's picture

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

Fri, 05/02/2014 - 16:56 | 4721806 orez65
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! 

Fri, 05/02/2014 - 16:27 | 4721707 McMolotov
McMolotov's picture

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

Fri, 05/02/2014 - 16:27 | 4721708 Charles Nelson ...
Charles Nelson Reilly's picture

fuck it... who needs a house anyway?

Fri, 05/02/2014 - 16:44 | 4721764 SpanishGoop
SpanishGoop's picture

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

Your cardboard box will be next.

 

Fri, 05/02/2014 - 17:08 | 4721844 Eternal Complainer
Eternal Complainer's picture

Then just a colostomy bag and a rascal scooter.

Fri, 05/02/2014 - 16:30 | 4721716 101 years and c...
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.

Fri, 05/02/2014 - 16:36 | 4721738 buzzsaw99
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]

Fri, 05/02/2014 - 16:37 | 4721743 Critical Path
Critical Path's picture

Way to get out of dodge Ben!

Fri, 05/02/2014 - 16:43 | 4721762 waterhorse
waterhorse's picture

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

 

'Challenging environment' is bankster-speak for ?

Fri, 05/02/2014 - 17:09 | 4721852 cro_maat
cro_maat's picture

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

Fri, 05/02/2014 - 16:46 | 4721768 Yen Cross
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...

Fri, 05/02/2014 - 17:10 | 4721856 buzzsaw99
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.

Fri, 05/02/2014 - 17:19 | 4721893 Yen Cross
Yen Cross's picture

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

Fri, 05/02/2014 - 18:38 | 4722160 logicalman
logicalman's picture

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

Fri, 05/02/2014 - 16:47 | 4721770 Notsobadwlad
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.

Fri, 05/02/2014 - 16:56 | 4721804 Cryogenic
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?

Fri, 05/02/2014 - 17:05 | 4721835 SpanishGoop
SpanishGoop's picture

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

 

Fri, 05/02/2014 - 17:04 | 4721831 q99x2
q99x2's picture

Arrest Jamie Dimon.

Fri, 05/02/2014 - 17:25 | 4721914 chunga
chunga's picture

Cut off his horns too.

Fri, 05/02/2014 - 17:43 | 4721985 Yen Cross
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

Fri, 05/02/2014 - 19:04 | 4722251 Conax
Conax's picture

No concern for the working girls?

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

Fri, 05/02/2014 - 18:36 | 4722155 doggis
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!!!

 

 

Fri, 05/02/2014 - 19:12 | 4722284 ms8172
ms8172's picture

Should we expect more people plunging from your buildings?

Fri, 05/02/2014 - 19:22 | 4722315 Rough-Trader
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?

Fri, 05/02/2014 - 19:52 | 4722401 starman
starman's picture

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

 

 

 

/s

Fri, 05/02/2014 - 21:38 | 4722671 Rising Sun
Rising Sun's picture

I live in a shipping container.

 

FUCK HOUSING!!!

Fri, 05/02/2014 - 22:13 | 4722772 novictim
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!.

Sat, 05/03/2014 - 00:33 | 4723013 blue gkm
blue gkm's picture

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

Sat, 05/03/2014 - 11:41 | 4723603 AdvancingTime
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...

Do NOT follow this link or you will be banned from the site!