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Guest Post: Black Is White, Hedges Are Bets, And Your Money Is Mine

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Black Is White, Hedges Are Bets, And Your Money Is Mine

From Of Two Minds contributor Zeus Yiamouyiannis

Once again we turn to frequent contributor Zeus Yiamouyiannis for a sharp analysis of why our "profits are private, losses are public" crony-capitalism is self-destructing and what is needed to move forward to a sustainable, adaptable, wealth-generating capitalism.

As we witness the riotous dissolution of corrupted capitalism, we need not wait for the history books to identify the mile markers of self-destruction. If we are to rebuild capitalism, even as it is tearing itself down, then we will need to become street-smart detectives in analyzing the current economic murder-suicide in progress.

Every fall has its tell-tale confirmations and corrupt capitalism is no exception. There arrive key points where a system’s own contradictions become so evident and self-damaging, where motive, means, and opportunity become so clear, that one can mount an informed, effective counter-offensive.

Two notable recent contradictions have surfaced in the ongoing debacle called big banking.

1) Hedges for big banks have evolved into gambling vehicles that increase risk rather than reduce risk.

2) Guaranteed savings deposits in those same big banks are being used as fodder in the high-risk investment casinos of global finance. There are no longer effective firewalls or truly secure funds.

Capitalism now means big banks profit from their so-called successes, and others pay for their failures: “Black is white.” JP Morgan has recently lost $3 billion dand counting on a ‘sure thing’: “Hedges are bets.” Investment banks are now merged with conventional banking and secured by taxpayer and depositor money: “Your money is mine.”

These capitalist tumors grow from assumptions that all gains shall be privatized, all stakes shall be “other people’s money,” and all liabilities will fall upon the patsies formerly known as represented citizens.

Everything for reckless, ill-gotten profit; nothing for prudent management

I felt like I was in the twilight zone when reading a New York Times anatomy of JP Morgan’s recent multi-billion dollar losses on some of its hedge positions.

First, these so-called hedge positions were never designed as buffers against loss. They were driven by greed, risk, and desire for profit. Genuine hedges are supposed to buffer against, rather than accentuate, loss, excess, and unwise decision-making.

“What this hedge morphed into violates our own principles,” said JP Morgan CEO Jamie Dimon, citing their recent multi-billion dollar loss. “Morphed into?” C’mon! You played the market from the start. This was no hedge. It was a gamble, and one that you lost. Capitalism that relies upon sound judgment is apparently a throwback to the time when consequences fell upon the company making bad decisions.

Ironically, the more traders stampede to a “sure profit” in certain hedges, the riskier they get. With the advent of high frequency trading and hyper-speed information access, these stampedes are more likely to occur. Risk is also amplified by converse positions. In today’s reality, those who bet against these “sure profit” moves can now employ methods to enhance their position by artificially manipulating buying and selling (naked shorts anyone?). Prospective gold mines can quickly turn into dry holes.

Nobody seems to learn when there are no meaningful consequences. Almost the same exact scenario befell Long Term Capital Management (LCTM). Both LCTM in 1998 and JP Morgan in 2012 bet on the “sure” convergence of newly issued and older treasury bond interest rates, hoping to amplify a small but relatively guaranteed profit into a huge profit by creating a large position through leveraged borrowing.

This very action and the actions of others piling on actually increased divergences by straining the Treasury market. Leveraged hedges built around amplified, “safe” profits create a fertile climate for significantly increased risk and billions of dollars of loss.

Genuine hedges increase operating profit over time by anticipating and reducing possible loss. These latest hedge mutations used by JP Morgan and others have sought to increase profit directly through betting. By using access to data and resources that others now share in the information age, LCTM and JP Morgan failed to anticipate the effects their very actions would have on the market. They needed a genuine hedge against their mutated hedge. (Maybe they should have consulted Goldman Sachs, the experts in betting against their own advice and their own customers for profit.)

When moves to create stability and safety are themselves more gambling, there is no coherence to the system, no buffer, no feedback loop. Excess is rewarded and prudence is punished. With such an operating premise, finance can only spiral into a senseless spectacle. The din is still off in the distance but getting louder as the hounds of reality refuse to be kept at bay.

Savings deposits in big banks have effectively become market casino fodder

Investment involves gambling plain and simple. Risk-return assets are not simply product purchases. If investment were just a consumable, the buyer would use the product for personal needs and see its value depreciate gradually through use. Investors have much different expectations. They are seeking a stake in an enterprise, not just a product, that will generate financial return and appreciate in value. However, this enterprise can also lose its value and leave the investor with nothing.

Even entrepreneurs who invest in their own business, as laudable as that may be, are gambling. They can lose their money for a variety of reasons, even if their business plans are well conceived, organized, and executed. There should be no guarantees with investment except those legal protections against fraud, theft, abuse, manipulation, and corruption that maintain a free enterprise system of risk and return on a transparent, accountable, and enforceable playing field. Bad luck, bad timing, and even bad management are all a fair part of free enterprise.

What happens, however, when big banks, unleashed by the abolishment of the Glass-Steagall Act, are allowed to link their unregulated investment gambling activity with regulated and guaranteed deposit taking? A sham of a free enterprise system emerges, where public funds and guaranteed private savings are nothing more than backstopping fodder for irresponsible gambling.

Here is the key question: Is money that I deposit to a bank, money that I give to a bank? The big bank’s answer is, “Yes. We will use your money or lose it any way we choose.” My answer is, “No. Deposit means deposit. I am not lending it. I am not investing it. I am not agreeing to get a below-inflation return so I can lose my money outright. (For a too-close-for-comfort parody on this see: The Important of Saving Money)

Savings is supposed to be secure dollar storage in a financial lending service. In consideration for lenders circulating my deposited funds at higher interest, I am given a modest user fee. I am parking my money with a bank or credit union to use in safe, vigilantly underwritten lending activities. The lending institutions I patronize garner a higher interest return than they are paying out to me. Interest rates they charge others vary to compensate for default risk. Of course this does not maximize profit! It maximizes stability. That’s its purpose, and that is the purpose of guaranteeing my deposit.

This is why savings is distinct from investment. Investment is a gamble. Its purpose is to maximize profit (including minimizing loss) by wisely supporting enterprises that are managed well and that return well. At least that is the way it is supposed to be. Not so today. Big banks are treating my deposit money like an investment in a greed-driven empire with no upside for me. If banks’ stocks go up, I'm not getting a dividend. If these banks go bankrupt through unwise or unlucky gambling, either I don't get my money back, or taxpayers ending up bearing the costs.

The global financial system has turned into a rigged Las Vegas minus the neon. Instead of the gambling addict going broke and being escorted out of the casino, my livelihood and my children’s is being put on the table to allow these addicts not only to win back their money but make a killing in the process. (Of course big banks are also the gambling houses themselves, as well as the addicts, charging fees for every transaction, giving themselves hundreds of billions of dollars in bonuses, and skimming profits.)

This same condition extends not just to savings, but to the way assets and future public entitlement payments are being annexed through taxpayer bailouts and increased national debt. In fact, the present and future wealth of the entire planet is being put up for chips. “Don’t worry,” say the big banks in a slurred voice, “My rich uncles, the central banks, will make good. Deal me another hand! Hey, bring on mortgages and Social Security and put them on the betting block too.”

We are so far down the rabbit hole that even reinstituting Glass-Steagall will not be sufficient. Big banks are simply reshuffling practices in such a way that investment banking is not labeled as such. Enforced separation between investment brokering and traditional deposit taking means little if I can simply "rename" my investment brokering as something else or if I can classify my deposit taking so it is guaranteed by the FDIC even as I funnel and gamble that money. Heads I win, tails you lose again.

What can be done

The answer to this hijacking of private savings and public funds is public refusal to redeem gambling debts. This can be done in several ways:

Financially, citizens en masse need to coordinate taking their money out of corrupt big banks and put that money into financially strong community banks and credit unions that don’t gamble with other people’s money. If I decide to gamble with my own money with a bank-serviced investment portfolio, fine. If an investment bank decides to gamble, it can use its own capital and not mine. If I decide to let a hedge fund gamble my money for me, I should be prepared to lose it all.

Politically, we need to push for an enforced law with a very simple rule: “No public guarantees for private gambling” and do a much better job of ensuring that no guarantees of public funds go to any activity that is even associated with investment gambling.

We could charter and support state or regional banks from the national level to provide low-cost liquidity (an alternative “Fed window) to small banks and credit unions--organizations that actually make their money lending prudently to communities and enhancing the economic health of the nation and local populations. These organizations would then more effectively compete with the current corporate financial monopolies holding this country hostage.

Policy-wise, we could limit counter-party risk and the systemic damage caused by Big Finance’s investment gambling. (Karl Denninger has a good suggestion in these two posts: Why The JPM Trade Matters and Solution: ONE DOLLAR OF CAPITAL). Denninger’s "One Dollar of Capital" rule would “Prohibit as a matter of Federal Law… the lending of money unsecured that exceeds the firm’s capital.” However, if firms, like MF Global, can gamble with segregated customer accounts as if these accounts were their own money, this suggestion won't work for a particular bank or investment company. Hence the need for the previous strategies.

We have a long way to go, but the hounds of reality strain closer. Instead of running from them, let’s grab their leashes and turn the hounds on the banks.


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Thu, 06/14/2012 - 11:55 | 2525921 Gringo Viejo
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Thu, 06/14/2012 - 12:05 | 2525953 Newsboy
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Thu, 06/14/2012 - 12:43 | 2526078 ZerOhead
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“Yes, it’s supposed to earn revenue,” Dimon said, referring to hedging inside JPMorgan’s chief investment office unit, where the $2 billion loss originated. “This particular synthetic credit portfolio was intended to earn a lot of revenue if there was a crisis. I consider that a hedge.”

Looks like Jamie wanted a crisis and he must therefore be very disappointed.

As Max would say... "This man is a TERRORIST."

Thu, 06/14/2012 - 12:33 | 2526076 Gringo Viejo
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To further illustrate the contemptable inadequecy of the MSM......the MSN hompage makes no mention of unfolding events in Egypt in their top 7 headlines. Justin Bieber sits in the #2 slot.

Thu, 06/14/2012 - 14:02 | 2526420 slewie the pi-rat
slewie the pi-rat's picture

The Tripoli Post - Libya News and Business

this covers noAfrica as a general source [w/ agenda]

their agenda does not always interfere with their stories, but this is published outa tripoli...  think about that for a minute, now and then, ok?

they cover egypt;  they covered the political ravings to persecute coptics

they publish stuff from alJaz, boston, the internationalCriminalCourt, LA, london, africanUnion and sports!

almost every time i go there i learn something new and strange;  inclusive of recent events in egypt

Thu, 06/14/2012 - 11:57 | 2525925 writingsonthewall
writingsonthewall's picture

Rebuild capitalism?


You have learnt NOTHING.


This was all predicted - but for some reason you decided to believe Friedman or Mises.


Capitalism IS the problem - this 'end game' was inevitable in a system where monopoly power rules and everyone is working to get their hands on some.

Thu, 06/14/2012 - 12:01 | 2525944 GeneMarchbanks
GeneMarchbanks's picture

Only partially true. We can safely say the Oligopoly power rules and the monopoly they're working towards is by no means secure.

Thu, 06/14/2012 - 12:02 | 2525946 Abiotic Oil
Abiotic Oil's picture

We haven't had free market capitalism in a long time.

We have "corporatism", or "crony capitalism" if you prefer.

Thu, 06/14/2012 - 12:06 | 2525966 Overfed
Overfed's picture


Thu, 06/14/2012 - 12:07 | 2525972 writingsonthewall
writingsonthewall's picture

Oh do shut up - corporatism is merely a form of fascism - a predictable outcome of Capitalism.


I mean how dumb are you - did you expect Goldman Sachs to be 'outdone by a fitter rival'?


What a joke - you are trying to claim that going back is going forwards and that somehow this end game has been 'created'.

If you bothered to read you would know one K Marx predicted this outcome as inevitable and even explained why.


...but it's something else - right?


Total rubbish - you're just another sheep being led back tot he slaughterhouse.


Capitalism has broken, it hasn't formed into 'something else' - it's merely fulfilling it's destiny - to develop into fascism where the world is designed around the ideals of the powerful few.


You were sold a lemon and now you want more - ha ha ha ha - some suckers never learn.

Thu, 06/14/2012 - 12:18 | 2526001 Ghordius
Ghordius's picture

again this discussion with a lot of people that use old political terms in the "new way" it is used in the US political discussion?

the way the original(TM) italian fascists understood corporativism was leaned on the way the guilds used to work in the Middle Ages, best explained in those cities where every guild had one vote (if you were not member of a guild you were a peasant under a lord, anyway - not a citizen).

so as Benito Mussolini explained corporativism (from memory, but this is the gist): you call all the stakeholder of an industry at one table, the shareholders, the management and the worker's representatives,  and then you (as a minister of the state or just a thug of the dictator) put a pistol on the table and say: "who is going to say or do something that is against the interests of the Nation? speak up, I've got enough ammunition for everybody".

funnily, by terrorizing everybody involved, the system worked, somehow. they had good, constructive talks.

Thu, 06/14/2012 - 12:20 | 2526030 GeneMarchbanks
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Funnily enough, I believe it was Ford who was a huge fan of Mussolini. You had the choice of any color as long as it was black.

Yanks like to reminisce fondly of them good ol' days...

Thu, 06/14/2012 - 16:29 | 2526051 Ghordius
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nearly everybody was a huge fan of Mussolini, at that time. Churchill was a big fan, too, and this includes Herr Hitler.

it sounded like a wonderful idea. and many here on ZH say things that lead me to think they would be new fans...

Great post, btw. Well done. Funny how all the banking terms all have a history of why they were set up this way, and how it repeats itself.

Unwittingly, perhaps, a political pressure of this kind would be good for the safe assets USD & UST.

Thu, 06/14/2012 - 12:54 | 2526175 tmosley
tmosley's picture

Yes, to worthless fools like yourself, words always speak louder than actions.  

Thu, 06/14/2012 - 13:01 | 2526202 GeneMarchbanks
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By "worthless fool" you mean, off course, someone who doesn't agree with your libertarian 'philosophy'.

No, my friend, I don't fall for such simplistic lines of thought. I recognize that words are in direct association with actions.

Thu, 06/14/2012 - 13:07 | 2526225 tmosley
tmosley's picture

No, you claim that words are worth more than actions.  You ignore the fact that Ford paid his line workers three times the gong rate for factory workers, for exacmple.  You also ignore the fact that as a private businessman, he had every right to limit the colors he offered in his products, as that would drive down costs for his consumers.

But hey, fuck him, some worthless shit says that he had bad thoughts and said bad words, therefore capitalism is bad.

Thu, 06/14/2012 - 13:33 | 2526317 GeneMarchbanks
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You ignore the fact that Ford paid his line workers three times the gong rate for factory workers, for exacmple.

You ignore the fact that coming out of the Depression you had wages so depressed(excuse the pun) that the need was for skilled labour and he wanted to have a monopoly of that.

I never said anything like 'fuck him' nor 'capitalism is bad'. I'll leave it to you to wage war on words among countless other things you like slandering so much.

Thu, 06/14/2012 - 14:43 | 2526528 tmosley
tmosley's picture

Waffle away from that position faster, waffler.

EDIT:  Also funny that you fail to realize that he TRAINED those workers.  ANYONE could train workers the same way.  Your idiotic claim that skilled labor is some sort of natural resource that can be monopolized is utterly ridiculous.  You know, like pretty much everything else you say.

Thu, 06/14/2012 - 15:12 | 2526757 GeneMarchbanks
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Nonsense. Via Wiki:

Ford astonished the world in 1914 by offering a $5 per day wage ($120 today), which more than doubled the rate of most of his workers.[24] A Cleveland, Ohio newspaper editorialized that the announcement "shot like a blinding rocket through the dark clouds of the present industrial depression."[25]The move proved extremely profitable; instead of constant turnover of employees, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs. (emphasis mine)

Please stop.

Thu, 06/14/2012 - 16:11 | 2527069 tmosley
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Uh, yeah, did you read the part about reducing turnover?  

Christ, it's like trying to explain evolution to a Baptist preacher.

Thu, 06/14/2012 - 14:32 | 2526573 Abrick
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Three times the wages until he put most machine shops out of business. Then the wages were flattened for a couple decades.

Thu, 06/14/2012 - 14:40 | 2526611 tmosley
tmosley's picture

*Citation needed.

Thu, 06/14/2012 - 12:28 | 2526036 Ghordius
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Capitalism works or breaks down when the rule of law breaks down.

The rule of law breaks down when I am in doubt if an action I'm contemplating or doing is going to be punished or not. Eventually. Of course, at the moment everybody (that counts) is "doing it".

See the CEOs of the MegaBanks. Great Leaders or Guilloutine Fodder?

See Iceland, where the bankers face jail time...

Thu, 06/14/2012 - 12:48 | 2526145 Killtruck
Killtruck's picture

Or China, where they are summarily shot. or hanged. Not sure of the method. They end up dead in the end.

Thu, 06/14/2012 - 12:58 | 2526192 AnAnonymous
AnAnonymous's picture

Capitalism works or breaks down when the rule of law breaks down.


Again with that stuff? The rule of law is broken?

US citizens have always exerted the rule of law the same way. The US is a record breaker of treaties during its short history.

But what, did it mean that capitalism did not work because the rule of law was broken?

Especially since US citizens locate their capitalism break down in the 1970s, 1980s.

Thu, 06/14/2012 - 13:09 | 2526236 BooMushroom
BooMushroom's picture

The rule of law is broken.  The law is so large, so detailed in some parts, and so vague in others, and so poorly organized, that it is impossible for anyone to know the totality of the law.  If you took 12 lawyers, put them in separate rooms, and asked each one whether a specific action was legal or illegal, there are many times that they would not agree.

Thu, 06/14/2012 - 13:22 | 2526280 AnAnonymous
AnAnonymous's picture

They are some good lawyers and some bad lawyers. Good lawyers win cases. They are winners. Bad lawyers lose cases. They are losers.

US citizenism.

Thu, 06/14/2012 - 21:28 | 2527900 Bpseudomallei
Bpseudomallei's picture

Because the only type of law out there is what you see on Boston Legal.  The Rule of Law is broken and the education system teaches people nonsense making the situation worse.

Fri, 06/15/2012 - 12:54 | 2529727 Kobe Beef
Kobe Beef's picture

The Rule of Law is just a joke. Barack Obama, Constututional Lawyer. That's the punchline.

Thu, 06/14/2012 - 13:44 | 2526347 michigan independant
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Which cafe red crusader are you today? The world was shocked when the Tibet nun, Kelsang Namtso, was killed when Chinese border police opened fire on a group of pilgrims as they fled Tibet over the infamous Nangpa Pass. Nearly three years later and in the lead up to the 50th Anniversary of the Dalai Lama’s exile, SBS TV will air February 19 at 8.30pm, TIBET: Murder in the Snow – a new documentary which uses original climber footage, reenactments and interviews with witnesses and survivors to tell the story of young Tibetans who risk their lives each year to illegally cross the rugged Himalaya Mountains in an attempt to see their spiritual leader, the Dalai Lama, or attend school in India.

Got to love Red Citizenism on the Dole

Thu, 06/14/2012 - 14:39 | 2526606 Ghordius
Ghordius's picture

again, I will assume you are using a Chinese point of view. which will allow me to state that in China, the rule of law is not broken. bent, very often, but if I have any doubt about how I will treated if I get caught then it's because I am not a borderline but a terminal case of sociopathy.

and the punishment is even clearer, as the difference between a slap on the wrist and a bullet in the head

Thu, 06/14/2012 - 12:24 | 2526047 tmosley
tmosley's picture

Communism is awesome.  That is why I moved to Best Korea and now live in a mansion on the surface of the sun (the A/C is paid for by the state!), and skip daintily through meadows made of candy-canes and unicorn skittles all day!

Thu, 06/14/2012 - 13:03 | 2526211 AnAnonymous
AnAnonymous's picture

Capitalism has broken, it hasn't formed into 'something else' - it's merely fulfilling it's destiny - to develop into fascism where the world is designed around the ideals of the powerful few.


Strange way to put it. When something breaks, it forms into something else.

US citizens discussing.

The reality is that US citizenism has not changed one bit since materialization in US on 1776, July, 4th.

Nothing is broken in US citizenism, save maybe the covenant leading some US citizens to think they have a birth right to be on the right side of US citizenism.
Even though this covenant barely exists.

US citizens have always applied selectively the law in what they call the rule of law. The only thing different is what written earlier: now, some US citizens are pushed on the wrong side of it and for them, it is such a change they want to sell the idea that it means US citizenism has changed.

Thu, 06/14/2012 - 13:19 | 2526266 LFMayor
LFMayor's picture

applied selectively the law.

That there is what you call a winner, Ricky Bobby.  If your meek, timid and  servile ancestors had told the emporer to stick it up his ass instead of destroying all the ships, charts, logs and shipyards when that dumbfuck commanded them to you would be making the rules bend today. 

But instead, you're choking down your melanin-enhanced rice, bitchin about how the world and capitalism are so unfair while using technology that you would have never even fucking dreamed about were it not for capitalism and that big, mean old unfair world.

That's a bitter drink isn't it?  To have had it in your hands only to throw it all away.  Nothing like proving your unworthiness to lead by testifying against your own self.  Wanna know how to redeem yourself?  Get those parasites off your back.  Fight them, crush them and make your people free.  Do it for your family's future, rise on your own feet and become great.

So here is how I see it shaking out.  You'll contine to bitch, and leech, especially you, who cravenly works for your masters.  And when things get so bad here, where I am, there will be blood.  And ropes.  And the interest is going to come fucking due all at once.

I think we'll come through the other side even stronger, be as we will a bit lighter do to frequent and liberal application of Darwins correct theory.   We'll have to wait and see though, won't we?  Now run and tell your masters, they'll ponder it a while and realize that they sure as hell don't want it to break out that way.  What comes out the other side might not be nearly so accomodating to the parasites around the world.  Instead, it may seek them and crush them, to prevent it's own re-infection.

Thu, 06/14/2012 - 13:27 | 2526291 AnAnonymous
AnAnonymous's picture

Made me laugh. Typical US citizen mixture.


-alluding to China decision not to expand, leading to chinese not bending the rules today.

Does it mean that bending rules is something to be desired? Because that is what most US citizens blame the elite, the banksters, the illuminati to do. Have not US citizens onthis stie started to challenge on consistency?

Shaking off the parasites would allow to expand? Expand into what? The world is finite, you know.

Typical US citizen speech.

Thu, 06/14/2012 - 13:51 | 2526370 LFMayor
LFMayor's picture

China's "not wanting to expand" in Tibet worked out pretty good, didn't it?

But the Viets and the Indians and the Russians in mongolia whipped your "non-expanding" asses real good, didn't they?

Keep up the good work.  Someday, you'll make the mistake the Japanese did and piss us off real well.  Then all the powdered fetus magics and six demon bags in the world won't save your little asses.

history doesn't repeat, but it sure rhymes brother:

Dirty knees

Thu, 06/14/2012 - 14:45 | 2526640 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

The world is finite, you know.

In finite world some things even being are exist to infinitely nevertheless.

Genuine example presented is AnAnonymousistic fetish to disagreement over universally aspects everything from US citizens being in writing or saying. Infinite fetish of AnAnonymousism now in finite world here being sharply.

AnAnonymous does not viewing himself possessing harbour of malice toward humans resultantly fetish cloaking him this viewing from. Fetish of infinite US citizen disagreement cloaking himself against self indiction is most fruitful gift he is to himselfs bestowing.

The deliciousness of US citizenism fetish inoculates AnAnonymous from conjugating all forms of self indiction. This allowing him perpetually living in bedazzlement interior regions of tralala land with totality blamelessness. Self constucted exterior which regions onto he can project away from him source of his malice harbour of humanity.

He confused very mixed up in head sickness.

Thu, 06/14/2012 - 14:14 | 2526468 Abiotic Oil
Abiotic Oil's picture


 I see a great future ahead for you... as a farmer contirbuting to the collective good in North Korea.

I mean if Karl was correct that this is the end game of capitalism then there is no reason for you to stick around right?

And rest assured, the communists in North Korea have in no way let communism develop into a world that is designed around the ideals of the powerful few.  Just ask Dear Leader.



Thu, 06/14/2012 - 12:34 | 2526083 Plymster
Plymster's picture

"Corporatism" or "crony capitalism" is the natural end-game for free market capitalism.  This has been repeated in history many times, from the first time corporations were used in the Age of Enlightenment to the Gilded Age, always with the same outcome - massive, widespread revolution.

Hell, just play Monopoly with the family to see how free market capitalism works.

Thu, 06/14/2012 - 14:03 | 2526423 LMAOLORI
LMAOLORI's picture

Speaking of Crony Capitalist's JP Morgan boss flashes presidential bling at Senate hearing


JPMorgan Employees Join Goldman Sachs Among Top Obama Donors


President Obama's Favorite Banker

Thu, 06/14/2012 - 12:06 | 2525956 InconvenientCou...
InconvenientCounterParty's picture

Markets are part of Human wiring.

Collective government is too.

When investments in government corruption have the highest return on capitol in the market you've lost both.

Thu, 06/14/2012 - 12:21 | 2526031 shovelhead
shovelhead's picture

Ding! Winner.

Give this man a cigar.

Thu, 06/14/2012 - 12:06 | 2525964 FL_Conservative
FL_Conservative's picture

You're wrong!  Capitalism is NOT the problem.  The PROBLEM is an over-reaching government that legislates and regulates to the benefit of those closest to it and contribute to the maintenance of the status quo.  REAL capitalism hasn't been practiced in over 100 years.  Fix how government "represents us" by instituting strict term limits, returning more powers/responsibilities to state and local governments and reducing the size of the national beauracracy.  THEN you will see what capitalism can do.

Thu, 06/14/2012 - 12:09 | 2525981 writingsonthewall
writingsonthewall's picture

You're an idiot - Governments didn't start regulating to gain power moron.


They did it because the PEOPLE DEMANDED IT - after the 'capitalists' treated them so badly.


You're just playing 'chicken and egg' - but actually it doesn't matter. Government regulationin capitlaism is as inevitable as capitalisms development into fascism.

Thu, 06/14/2012 - 12:21 | 2526033 tmosley
tmosley's picture

Collectivist tripe.  

If by "people" you men corporations and union thugs.  The people rose from the status of poor farmers to rich middle class because of those capitalists.

Capitalism descends into fascism the same way a clean room descends into squalor.  Thing is, you can't avoid descending into squalor by avoiding cleaning, just like you can't avoid a descent into fascism by getting rid of capitalism.

Thu, 06/14/2012 - 13:07 | 2526227 AnAnonymous
AnAnonymous's picture

The people rose from the status of poor farmers to rich middle class because of those capitalists.


Actually, as shown more and more explicitly every day, they managed the promotion because of the welcomed help of sponsors the likes of Indians.

Suddenly, as US citizens appear to go through a shortage of those kind donators, promotion is no longer that a given.

Will be even best when the exterior US citizens are used to tap in to promote their own will be ostensibly declining.

Thu, 06/14/2012 - 14:29 | 2526552 tmosley
tmosley's picture

Indians died out a hundred years before the rise of the middle class, moron.  And they would have died no matte what the Europeans did, as the diseases they brought ran rampant and wiped out 99% of the population before whites even arrived.

But then, I don't know why I bother saying to someone who had their brain replaced with a little box that just outputs jibberish followed by "US citizenism".

Thu, 06/14/2012 - 12:26 | 2526054 Rip van Wrinkle
Rip van Wrinkle's picture

Since when have Governments ever done anything because people demanded it?


And please tell me the last Gvernment not to want more power?


You're showing yourself up.

Thu, 06/14/2012 - 12:41 | 2526090 Mercury
Mercury's picture

"Capitalism" is a Marxist epithet, so I don't see much point in trying to defend someone else's straw man.

But if you're looking to replace private property, free enterprise, rule of law, enforceable contracts and individual civil liberties against the state with...Marxism, you're in for a hard sell and up against a lousy track record.

Thu, 06/14/2012 - 12:56 | 2526184 GeneMarchbanks
GeneMarchbanks's picture

Regardless of Marx the future, at least for Europe and its youth, will have to resemble something along the lines of primitive communism not because of resource scarcity or any such 'economic' line of thought, but simply because the age of imperialism is over for the continent and we're stuck with the geographic areas we have.

Thu, 06/14/2012 - 13:09 | 2526228 Mercury
Mercury's picture

Depends on the perspective.  European imperialism may be over but European colonization is just ramping up.

Thu, 06/14/2012 - 13:29 | 2526307 Lednbrass
Lednbrass's picture

Governments didnt start regulating to gain power, but from popular demand?

You must be either under 21 or from some urban bastion of collectivist idiocy, your childlike naivete is astounding. I really cant comprehend what it must be like to be so completely and fundamentally unfit for existence that it creates such a deep need for centralized control over life.

The silver lining is that when this system goes completely belly up your sort will be smashed flat by the iron fist of Darwin, depending on the validity of various religious beliefs you may then be able to learn about the revolution from Lenin and Marx personally-so at least theres that.

Thu, 06/14/2012 - 15:25 | 2526850 FL_Conservative
FL_Conservative's picture

Looks like the "votes are in" and the "writings on the wall" as to who the "idiot" is.  Have a great weekend, comrade.

Thu, 06/14/2012 - 21:36 | 2527928 Bpseudomallei
Bpseudomallei's picture

You are aware how fitting it is to have a muppet as your avatar when you spout such silliness.  I swear you have to be playing devil's advocate because you cant believe any of the claptrap im reading in your comments.  Good lord are you even aware what the hell lobbying is?

Thu, 06/14/2012 - 12:13 | 2525996 pods
pods's picture

I knew by the time that I upvoted you that you would have several downvotes.

My study of capitalism shows that this is where we end up.  It IS the game of monopoly due to the rules involved.  

Everyone can agree that you need rules in any system.  And you need someone or something to enforce those rules.

Successful people within that system are smart enough to realize that they may buy off the rulemakers to protect their market share.

Why the hell would one of the most successful capitalists like Rockefeller say this:

Competition is a sin.

Sorry, this system was always destined to be ran by those who think outside the system, instead of competing within that system.

Why fight within the system for your rewards, when you can just buy the system itself?

That is what the old world money did.


Thu, 06/14/2012 - 12:38 | 2526099 tarsubil
tarsubil's picture

Rockefeller said that because that was his greatest enemy and the only place you get competition for the likes of Rockefeller is with capitalism. The fact that the people just stood aside and let the most successful capitalists use government force to protect their wealth isn't so much a problem with capitalism but with the people. Perhaps one day we'll learn.

Thu, 06/14/2012 - 12:55 | 2526178 pods
pods's picture

The people were always intimately involved with every single step in regulatory capture (as you stated).

All the moneyed interests had to do was to use Hegel to their advantage and sit back.

Like the panic of 1907, which was the impetus for the creation of the FED.

People are scared into demanding action against the moneyed interests (or Al-CIA-Duh).  Of course, the moneyed interests are the ones causing the panic as they already have plans layed out for the future.

Like the Patriot Act, FED. etc.

People will never learn as we are easily patternable.  If you can recognize a pattern, you can use it to your advantage.

What we have now is the most likely outcome of capitalism.  Not saying capitalism is good or bad. It is a great system, in theory.  But in practice, it fails because of the way people can be patterned and manipulated.


Thu, 06/14/2012 - 13:29 | 2526259 tarsubil
tarsubil's picture

"The people were always intimately involved with every single step in regulatory capture (as you stated)."

I don't think so. People are busy living their lives. No one reads the Federal Register casually. No common person sends in comments.

"Like the panic of 1907, which was the impetus for the creation of the FED."

I think you have that backwards.

"People will never learn as we are easily patternable.  If you can recognize a pattern, you can use it to your advantage."

We will learn. The lessons we are struggling with are very old ones that we don't want to learn as they make us feel uncomfortable. Our awareness of the world is growing and as it does things we "know" will break and we will have no choice but to learn (or drink Jameson all day).

Thu, 06/14/2012 - 13:54 | 2526381 pods
pods's picture

I would indeed say that the panic of 1907 led to the creation of the FED.  The panic led to the creation of the Aldrich commision, which begat the FED.

(I think you are saying was that the panic was created so as to create the FED, and from what I have read, I agree entirely.)

The people are not watching the day to day like hawks, but they do see what they are shown, which is why the system breaks down.  And that is what the moneyed interests are counting on.  Once the fear card is played, the people scamper towards someone offering a solution.  These solutions are the goals of the money powers all along.

So the people are in fact involved, albeit under false pretenses.  I see it every day, where people clamor for "the rich" to pay back their fair share. When in effect, the rules put in place to effect this are merely to keep the peons down, as "the rich" are making the rules, and would never put into place something that actually hurts them.



Thu, 06/14/2012 - 14:01 | 2526417 tarsubil
tarsubil's picture

So you figured it out, why not the others?

Thu, 06/14/2012 - 14:16 | 2526481 pods
pods's picture

The other people?  Who knows.  Many people do not want to be bothered.  I think a good portion simply do not want to shake their own foundations.

Who in their right mind would want to come to the realization that they have been living a lie their whole lives?

The Matrix comes to mind.

I am all for the free, open, and voluntary exhange of goods and labor.  But I will not worship at the altar of any label (capitalism, socialism, fascism, etc).  

As soon as you start to toss around and get behind labels, you must start to compromise your own principles.  And when you use a label, you are overlooking important aspects or shortcomings of a particular way of behaving or thinking.

I just cannot get why so many here will question the governments or central banks of the world, or corporate earnings, but they cannot even contemplate that "capitalism" has shortfalls.

So out come the commie, fascist, etc.  It shuts down the argument in their own mind by ad hominen.

If capitalism is merely the accumulation of and best investing of capital, why the hell would a smart capitalist NOT think of using his/her accumulated capital to buy off the rulemakers, or to Taylor (sp intentional) the school system to their benefit?



Thu, 06/14/2012 - 14:35 | 2526583 tarsubil
tarsubil's picture

"If capitalism is merely the accumulation of and best investing of capital, why the hell would a smart capitalist NOT think of using his/her accumulated capital to buy off the rulemakers, or to Taylor (sp intentional) the school system to their benefit?"

Because, ultimately, it is not the best use of capital. Generally, the indirect benefits of capitalism far outway the short term gains in an arbitrary system that conditionally allows theft. There are miraculous inventions never made that the ultra rich will never know due to the great capitalists' fear of competition. Their base desire to sit at the top made them poorer. "Thou shalt not steal." This law is not for His benefit, it is for ours.

Thu, 06/14/2012 - 15:32 | 2526888 pods
pods's picture

It is the best use of capital for those in control of it?

I have seen many (albeit sparsely referenced) inventions that have been quashed by those with entrenched power.  From negative resistors, Tesla's ability to power a car with either wireless energy transmission or from the energy all around us, motors with a COP>1, to simple carburetor designs that greatly increase fuel efficiency.  Why these are not available now who knows.  Maybe they are frauds.  But if I was at the top of the food chain and saw a technology that threatened my market share I would not be thinking of the benefit to society as a whole.  We have to admit that those who have accrued power like to keep it.

Competition and the profit motive are fantastic for advancement and benefit society as a whole.  I am all for that.  In fact, I am all for whatever anyone wants to do with their time, money, or power, as long as it does not infringe on another's rights to do the same.

Love your view on "Thou shall not steal."





Thu, 06/14/2012 - 12:53 | 2526169 tmosley
tmosley's picture

Damn I love it when you can take a "quote" out of context from someone long dead and use it to disprove an entire system.

For Communists and other idiot statists, words speak louder than actions.  They ignore what Rockefeller actually did, and focus on what he may or may not have said.  They also ignore the facts surrounding his rise to prominence.  If it hadn't been for him, we might well still be shipping oil in wooden barrels across trackless wastes, and suffering from the effects of poorly refined fuel oils.  Hell, the man INVENTED corporate R&D.  Can you imagine what the world would be like if IBM had never had a research division?

Thu, 06/14/2012 - 13:05 | 2526215 GeneMarchbanks
GeneMarchbanks's picture

Can you imagine what the world would be like if IBM had never had a research division?

Thu, 06/14/2012 - 13:10 | 2526237 tmosley
tmosley's picture

I'm pretty sure you just ended the argument with your loss, homie.

Thu, 06/14/2012 - 13:15 | 2526256 pods
pods's picture

I did not use that quote to disprove an entire system. The system did a fine job of disproving itself.

I used the quote as an illustration of what one of the pillars of capitalism had the audacity to say.  Nevermind his rampant quest for monopoly power, shady finances, thoughts of the small people, etc.

Of course, it not for big old world money we would be riding in horse drawn carts, etc.  

And if it hadn't been for his buddy Morgan, maybe we would not have the NEED for oil at all (Tesla)?

The sword cuts both ways.

And of course we cannot talk of the contribution of John D to the allopathic medical trust and public (government) education system.  Shall we talk of the General Education Board:

""In our dreams, we have limitless resources and the people yield themselves with perfect docility to our molding hands. The present education conventions fade from their minds, and unhampered by tradition, we work our own good will upon a grateful and responsive rural folk. We shall not try to make these people or any of their children into philosophers or men of learning, or men of science. We have not to raise up from among them authors, editors, poets or men of letters. We shall not search for embryo great artists, painters, musicians nor lawyers, doctors, preachers, politicians, statesmen, of whom we have an ample supply…The task we set before ourselves is very simple as well as a very beautiful one, to train these people as we find them to a perfectly ideal life just where they are. So we will organize our children and teach them to do in a perfect way the things their fathers and mothers are doing in an imperfect way, in the homes, in the shops and on the farm." - General Education Board, Occasional Papers, No. 1 (General Education Board, New York, 1913) p. 6."



Thu, 06/14/2012 - 14:31 | 2526567 tmosley
tmosley's picture

How DARE he reduce kerosene prices by 90% and usher in modern efficiencies which proceeded to revolutionize the world!!!

The GALL of some people!  Didn't he know that everyone was happy starving and dying at 35!?

Thu, 06/14/2012 - 12:18 | 2526011 tmosley
tmosley's picture

Damn that system that went extinct a hundred years ago for not being able to block fascism from beyond the grave!

So many people have listened to Friedman and Mises, but no-one listened to the true masters, Marx and Keynes!

Thu, 06/14/2012 - 12:22 | 2526037 Stoploss
Stoploss's picture

You fucking idiot, this has been neo facism since 1980.

That's ok, your too fucking stupid to realize it any way.

This IS what you want, so stop your fucking whining.

Thu, 06/14/2012 - 12:23 | 2526039 tarsubil
tarsubil's picture

"Man does not deserve freedom. Condemn him!"

I disagree. First admission. Then forgiveness. 

Thu, 06/14/2012 - 11:59 | 2525933 SmoothCoolSmoke
SmoothCoolSmoke's picture

I must say I am completely baffled by the run up in US stocks today.  Why would you go long in front of this weekend?  Perhaps a PM/Friday dump awaits, but if not I'll continue to scratch my head.

Thu, 06/14/2012 - 13:36 | 2526322 DavidJ
DavidJ's picture

Two options:


Syrzia Wins:

Ben Prints,  Markets Rally


Syrzia Loses:

Europe is save, Markets Rally!


What can go wrong?  /sarc

Thu, 06/14/2012 - 12:00 | 2525940 the 300000000th...
the 300000000th percent's picture

Its unicorn mating season dummy

Thu, 06/14/2012 - 12:01 | 2525941 q99x2
q99x2's picture

No more Federal laws. And no more lending of money with interest. Or I quit.

Thu, 06/14/2012 - 12:02 | 2525947 bigwavedave
bigwavedave's picture

Fat chance. 

Thu, 06/14/2012 - 12:05 | 2525954 km4
km4's picture

Jamie Dimon gets kid-glove treatment from senators

Thu, 06/14/2012 - 12:15 | 2526002 sunaJ
sunaJ's picture

The one thing these elected officials are good for is that they can make anybody come before them.  They get to speak to Jamie Dimon for us because he does not choose to speak to us.  When they finally get our empowered chance, they tell him how much respect they have for him and they only want to know if this is going to be a continued problem.  What a crock of cowards.

Thu, 06/14/2012 - 12:53 | 2526170 dizzyfingers
dizzyfingers's picture

sunaJ: Elected officials want to become powerful via getting rich. They come from voting districts all over the US; everyone who stands for federal election wants the same -- get rich, be powerful. Why would they bite the hands that feed them? It's only stupid sheep who think they would or should. The world doesn't work that way. Never has, never will. I hate myself for believing this but I do believe it.

Thu, 06/14/2012 - 13:10 | 2526240 shovelhead
shovelhead's picture

No surprises here. When hedging isn't hedging and is like DNA on a dress is not sex.

Definitions are fungible commodities in some well paid circles.


Thu, 06/14/2012 - 12:05 | 2525957 CommunityStandard
CommunityStandard's picture

Spot on article, but for those intimidated by the wall of text, here's a summary: Banks should not be allowed to place proprietary trades.  Banks pay interest on deposits, and use these deposits to issue safe loans, profiting from the difference.  The quickest way to bring about these changes is to allow banks with bad bets to fail.

Thu, 06/14/2012 - 12:11 | 2525988 km4
km4's picture


  • Capitalism now means big banks profit from their so-called successes, and others pay for their failures.
  • Everything for reckless, ill-gotten profit; nothing for prudent management
  • Savings deposits in big banks have effectively become market casino fodder
Thu, 06/14/2012 - 12:09 | 2525980 l1b3rty
l1b3rty's picture

Not so sure if we what we toil under is capitalism. Up for debate, for sure.

Thu, 06/14/2012 - 12:21 | 2526032 ljag
ljag's picture

There is no debate. Kondatrieff and Marx figured it out years ago.......and they're Russians for chrissake!!!


P.S. Nothing wrong with Russians per se it is just that WE living in America (the fortress for capitalism) don't see what is going on under our own noses.

Thu, 06/14/2012 - 12:13 | 2525994 Duke of Con Dao
Duke of Con Dao's picture

I can sum up this entire article using this 15 second vid mash

at 7 seconds in you know everything you need to know about 21st century capitalism  [hint: the Squid]

(hat tip: Captain America)

Thu, 06/14/2012 - 12:17 | 2526010 Skateboarder
Skateboarder's picture

Betting on futures contracts is retardation central and everyone who takes part in it is a dildo, especially if it's anything related to food.

On the flipside, this is a cool monopoly world we live in. Even the money's fake and everything. Wait a tick... monopoly has rules. Wtf is this place then?

Thu, 06/14/2012 - 12:46 | 2526139 shovelhead
shovelhead's picture

On fair markets and foul and who supports what.


Thu, 06/14/2012 - 12:28 | 2526018 Mercury
Mercury's picture

Genuine hedges increase operating profit over time by anticipating and reducing possible loss…When moves to create stability and safety are themselves more gambling, there is no coherence to the system, no buffer, no feedback loop.


Only if those hedges actually work out as anticipated. And since no hedge (except flattening the original position) is perfect there is gambling/speculation/risk of adverse outcome involved with every one.

Remove TBTF and firms like JPM will focus the appropriate amount of attention on the risks surrounding the whole hedge/prop trade thing.

And if they don’t it will be their problem.


Thu, 06/14/2012 - 12:32 | 2526077 Oldwood
Oldwood's picture

Can you have a competitive or prosperous economy when it's foundation is gambling rather than production? The "investment" community is nothing more than a gamblers cabal, no different than casinos vying to strip the workers of their weeks wages. Owners of common stocks are primarily placing bets, as in reality they own nothing physical. So many have convinced themselves that gaming the system is the only practical means of accumulating wealth thereby insuring its future. Unfortunately, as the gamblers produce nothing, they are effectively only redistributing the remaining wealth and that game ultimately favors the biggest players who can constantly adapt the rules to their benefit. This implies to me that wealth disparity will only get worse. People have been able to overcome the corruption that concentrated wealth creates through the creation of new wealth through production. When production is no longer possible we will ultimately all lose. If you want to see this end, you must step away from the casino. I know it sucks to think you might actually have to work for a living, but it is the only salvation.

Thu, 06/14/2012 - 12:33 | 2526079 dbTX
dbTX's picture

Anyone who does not recognize the market is completely riggged is a fool. Fools rush in where wise men fear to tread.

Thu, 06/14/2012 - 12:42 | 2526096 EZYJET PILOT
EZYJET PILOT's picture

What's all this crap about capitalism/fascism? The banks own the governments, some shady families run the banks, capitalism has never existed, fascism has been in place since 1913. Everything else is just intellectual claptrap. People on this forum are so desperate to sound intelligent, putting a few obtuse ideas, words and themes together might sound bright/enlightened but in the cold light of day reality is simple, in plain sight and bloody nasty.

Thu, 06/14/2012 - 12:39 | 2526102 Bam_Man
Bam_Man's picture

All you asset are belong to us.

Thu, 06/14/2012 - 12:53 | 2526168 Never One Roach
Never One Roach's picture

Foreclosures up for first time in 27 months 
Thu, 06/14/2012 - 12:54 | 2526176 AnAnonymous
AnAnonymous's picture

The article works ideas in a strange way. Or maybe, merely, in a US citizen way.

Risk assessment:

If one takes the gains and turns down the losses, what level of risk is this? High risk? Low risk?

The article works the idea in both way. It is high risk and also low risk.

If a scale returns both, what is the use of the scale?

US citizens have built a world of quasi certainty. I notice they have troubles with that and often enjoy depicting certainty as uncertainty.

US citizenism at work.

Thu, 06/14/2012 - 13:04 | 2526212 MFL8240
MFL8240's picture

This current situation is not capitalism so why even discuss it?

Thu, 06/14/2012 - 13:32 | 2526314 Vince Clortho
Vince Clortho's picture

Yes, it is truly amazing that some people are still talking about "capitalism".

There has not been anything approaching captitalism in a long long time.

Plenty of Socialism and Facism but not much else.

A bunch of parasitic sociopaths leeching the lifeblood out of a society has nothing to do with capitalism.  Get rid of the diseased parasites.

Thu, 06/14/2012 - 13:17 | 2526267 mudduck
mudduck's picture

All this talk about the "London whales" "massive" market moving $100 billion position, how about some info on JPMs $50+ TRILLION swaps. Surely they are all hedges with rock solid counterparties. Who are the counterparties? With supposedly over $500 trillion worth of swaps out there, have there not been 1 or 2 percent moves that affect anyone? Greece, Portugaul, Ireland, Spain, Italy, Euro banks? All this crap being reported is just theater if there are trillions in backroom bets out there, unless everyone is just breaking even, but then what would be the point?

Thu, 06/14/2012 - 13:23 | 2526284 Winston Smith 2009
Winston Smith 2009's picture

"We have a long way to go, but the hounds of reality strain closer. Instead of running from them, let’s grab their leashes and turn the hounds on the banks."

Gosh, wouldn't it be so nice if we could actually do that with the microscopic numbers of individuals who actually understand what's goin on.  And, BTW, the "hounds" are owned by the banks.

Thu, 06/14/2012 - 13:40 | 2526339 kevinearick
kevinearick's picture

Idiocracy: Living on the Dole, Again

You cannot have a police State without a police force. Personal responsibility is the gate, aggregated into a system, which results in a derivative distribution of feedback. You cannot force others to make productive choices, but you can easily adjust their currency. The a-holes embedded the last set of equations in their dc machine architecture, again. All alpha collection roads, corporate peer layers, lead to Rome, until they don’t.

So, the certified janitor can’t afford the taxes on a pack of smokes, can’t buy a coke, and can’t have popcorn at the movie theater. F-ing lizards all think they are T Rex, because all they do is program empire TV, and their subjects are stupid enough to watch, mesmerized by the perception of other people’s misery.

Anxiety is an emotional deer in the headlights; it cannot flee and it cannot fight, because the autonomous system cannot process the unknown signal. Education rewards compliance with false choices, any on of which may be arbitrarily deemed to be true, at any time.

Suzie tells Joe what to do, because Joe chooses stupidity. Joe tells Bob. Bob tells Mary, Sally, and Francine. Joe is afraid of Fred, his son, so he tells Fred nothing of the agreement. Fred eliminates Bob to take over the kingdom, and encourages M, S, and F to think they can tell Suzie what to do, by majority vote. Suzie tolerates the sh-show so her children don’t have to, right up until agency is stupid enough to interfere with her family. That’s feudalism, every time.

The only difference between empire iterations is arbitrary layers, income credit feedback tracks, of misdirection. Take your DNA helix, snip it at the same point in the ac cycle, and install a dc multiplexing controller. That’s your empire. Implicitly adjust delay anxiety error propagation in parallel as you travel, to ignite your development at will.

Unless you are a robot, you don’t pay me explicitly to work on elevators. You pay me implicitly to make sure your children have an exit gate if they seek it. And you ignore me having a double first thing in the morning, because you know I have to go to war with the empire every damn day to defend it.

Go ahead and fire me. Prove me wrong.

The path to the future always goes through independent minded children, quantum negative feedback backlash, not through the dependent adults subject to incremental positive empire feedback, and the latter always assumes the former will follow the same path, in the same circle. Why would anyone expect a viable private sector when it is taxed to subsidize a competing public sector, unless they are robots programmed to do so?

The druggy firefighters preventing males from working the forest, on the federal RE monopoly dole for the purpose, gift the fawning feminist socialites to feed the homeless they fear, and they all hope Kenneth Rogers doesn’t get out of jail. Crack me up.

No one wants to work on the Titanic and it becomes a police State, surprise, surprise.

BoC warns…

Thu, 06/14/2012 - 20:55 | 2527801 stuman
stuman's picture

I'm not 100% sure what I just read...but if you put it to music it would be a RUSH song (Vital Signs B-Side heh) 

Best Regards :) 

Thu, 06/14/2012 - 13:58 | 2526402 LMAOLORI
LMAOLORI's picture

Sweet how that works isn't it the Banker's have found a way to Socialize the Losses while still keeping the profit's they made and their enormous salaries to boot!


Taxpayers lose another $35.6 million on Tarp sales


Bailout in Spain Leaves Taxpayers Liable for the Cost


Why are Irish taxpayers bailing out unsecured bank creditors?

Thu, 06/14/2012 - 14:25 | 2526522 Grand Supercycle
Grand Supercycle's picture

Rally warning continues...

Despite stockbears with their pre-election jitters, SPX choppy bullish daily & USDX bearish daily charts strengthen.

Significant equity / EURUSD upside & USDX retracement ahead.

Thu, 06/14/2012 - 14:31 | 2526561 Bugsquasher
Thu, 06/14/2012 - 16:56 | 2527215 RoadKill
RoadKill's picture

One thing you got right


Im massively short so today hurt. But my ONE long was UPL to the tune of 30k shares. Ive told you fools on here gas fundamentals were turning but you listen to Testosterone Pit instead. And I told ypu UPL was best in class. CHK is a ponzi. But try as I might to help Yall make $ I just get junked by OWS Hippies.

Sold half my UPL (including 5k shares I bought yesterday at 17.90) at close to fund purcahses of 10k TZA and 10k VXX. Hopefully Ill reverse both sides of that trade tomorrow or Monday at a HUGE profit

Good luck EVERYONE tomorrow and Monday. Its gonna be FUN. The only surprise will be flat mkts with a range of +/- 5 points. Except you OWS hippies that want 99% of my profits. FUCK YOU.

Thu, 06/14/2012 - 17:01 | 2527233 RoadKill
RoadKill's picture

One thing you got right ALL YOUR MONEY IS MINE. Im massively short so today hurt. But my ONE long was UPL to the tune of 30k shares. Ive told you fools on here gas fundamentals were turning but you listen to Testosterone Pit instead. And I told ypu UPL was best in class. CHK is a ponzi. But try as I might to help Yall make $ I just get junked by OWS Hippies. Sold half my UPL (including 5k shares I bought yesterday at 17.90) at close to fund purcahses of 10k TZA and 10k VXX. Hopefully Ill reverse both sides of that trade tomorrow or Monday at a HUGE profit Good luck EVERYONE tomorrow and Monday. Its gonna be FUN. The only surprise will be flat mkts with a range of +/- 5 points. Except you OWS hippies that want 99% of my profits. FUCK YOU.

Thu, 06/14/2012 - 18:17 | 2527422 Cult of Criminality
Cult of Criminality's picture

Is your finger twitching Roadkill?

Thu, 06/14/2012 - 20:46 | 2527770 stuman
stuman's picture

I've always thought that Capitalism, backed and enforced by honest, practical and ethical "Rule/s of law" is and would be the best system. (though I agree with all here that the rules have of late been crossed out, re-written, ignored, bent and tossed out the window...)

Seems that several here believe that is not the case. I'm not a student of Marx so I'm not sure what his end-game extrapolation on Capitalism is (or was?)

So I'll ask in all seriousness...what system of trade and commerse and financials would be or IS better?


Thu, 06/14/2012 - 21:53 | 2527977 deerhunter
deerhunter's picture

The day is coming when a man or woman better have skills that are worth something in barter.  This day will not come in with a wimper and when it comes the time to learn such skills while being compensated with fiat will be long past.  Choose your trusted friends carefully and know your neighbors well and treat them the same as you would be treated.  The all in day of reckoning is coming. 

Fri, 06/15/2012 - 01:50 | 2528443 malek
malek's picture

I'm still wondering how Denninger’s "One Dollar of Capital [reserves per one dollar of lending]" rule is going to make any difference in today's world.
Those firm's "capital" would consist of fiat currency, i.e. is effectively backed by nothing. Great improvement! (And Denninger clearly opposes a gold-backed currency as "unworkable".)

So to me that is a fake solution. If I'm missing the point, somebody please enlighten me.

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