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Is JPM Staring At Another $3 Billion Loss?
"[The trading loss] plays right into the hands of a whole bunch of pundits...."
There are a lot of moving parts in the Dismal tale of Dimon's demise. The starting point is that Bruno Iksil in the JPMorgan CIO Office, under the premise of hedging the bank's credit portfolio's tail risk had placed various tranche trades (levered credit positions with various risk profiles) in the only liquid tranche market that still exists - CDX Series 9 (an 'orrible portfolio of credits with an initial maturity at the end of 2012). These positions were low cost (steepeners or equity-mezz) but needed a certain amount of day to day care and maintenance (adjusting hedges and so on). As the market rallied, the positions required increasing amounts of protection be sold to maintain hedges (akin to buying into a rally more and more as it rises). His large size in the market left a mark however that hedge funds tried to fix - that was his index trading was making the index extremely rich (expensive) relative to intrinsics (fair-value).
This is the 10Y IG9 credit index (dark blue) and its fair-value (light blue) and the difference or skew (orange). What is clear is that the index remained massively rich to its fair-value through this period (red oval) and it was not until the last two months or so that the skew (red arrow) began to compress as perhaps Iksil got the nod and more and more people realized the arb...(or understood from where the technical pressure was coming in the index rallying)...
Hedge funds began to try to arb this position and got frustrated at the lack of convergence - and this is how we initially got to hear about Bruno Iksil - the London Whale - since those funds suggested someone was 'cornering' the index market in credit.
Critically - this is akin to looking at the 500 names in the S&P 500 - weighting them and seeing the S&P 500 index should trade at 1200 but it is trading at 1400 so you sell the index 'knowing' that the index is mispriced - (this never occurs in stocks since they are instantly and everywhere arbed between the index and its components - but can occur in credit because of illiquidity or in this case flow - what we call 'technicals').
This was very evident when one looks at the net notional being soaked up by the Whale and this 'hedge' position had clearly grown extremely large as it became a momentum trade not a hedge (at which time we suspect Iksil started to lose control). In early April, as news of this broke across the market, the credit and equity markets were beginning to quiver again at European contagion and US macro data and as a proxy for the volatility JPM must have been feeling we can see very significant (2-3 sigma) swings in the credit index they held. This would more than likely have triggered a risk manager to come along and look over the trader's shoulder - suggesting humbly that he exit/hedge/don't panic.
This is IG9 10Y spreads (upper pane) and their rate of change (lower pane) - (h/t @swaptions for idea) and as is clear the 3-sigma multiple day move likely scared a few risk managers (and Iksil) into fessing up...
Evidence from the HY market suggests that the trader used more liquid on-the-run indices to hedge as the spread of the HY18 credit index blew notably wider relative to intrinsics and net notionals dropped modestly. The market calmed down a little and it appeared from net notionals and the index skews that he tried again last week to unwind some more of the huge position that had clearly tripped various risk limits and VaR controls. This is where we find ourselves now - the net notionals remain huge (and implicitly on JPM's shooulders), his lack of selling has left the credit index maybe 20bps rich to where it might trade given its rough correlation with the S&P 500 and this would imply at least $3bn of losses already in addition at fair-value.
As is evident, IG9 credit index and the S&P 500 have moved in a very correlated manner - and IG9 net notionals (the amount outstanding in IG9 CDS) has risen alongside these moves as JPM built a bigger and bigger longer and longer credit position. The red vertical arrow shows the current dislocation if one assumes the cessation of Iksil's unwind efforts stalled IG9's selloff - which is the $3bn loss that remains to be seen and the black dotted line is an indication of the kind of notional unwind that would occur - which with a market moving as it is - would be highly disjointing.
Of course, the situation is far worse because 1) any efforts to unwind such a huge position will lead to the market yawning wide and swallowing him in illiquid bid-ask spreads; and 2) the rest of the world knows their position - so why would the hedge funds not push their position. Perhaps this explains why JPMorgan's CDS has remained relatively wide while its exuberant stock price shot up on stress-test ebullience - only to plummet back to CDS reality this evening. Critically, JPM will need to use whatever method they can to hedge this now over-hedged and over-long position - which likely means credit instruments such as JNK, HYG, HY18, and IG18 will all get their share of strange attraction as the trader mispriced not just the basis risk (the volatility between the hedge and its underlying) but the attraction of running with a trend when you have a bottomless pit of money to cover it - until now.
It is already evident in the on-the-run liquid indices - HY18 for instance has exploded wider twice now - in line with the net notional reduction and hedging moves from JPM's IG9 position...
This chart somewhat relates to the IG9 skew chart above in that it represents how far above 'fair' the spread of the index trades relative to the underlying names - the spikes show that there was huge technical demand for the index protection relative to the underlying risk of the portfolio.
and perhaps there was already concern in the market with regard JPM's counterparty risk or exposure from hedgies' trades as CDS has been far less exuberant than stocks...
Of course noone knows for sure what exact positions Iksil had on - though it is clear what hedging he needed to do to manage his hedges. As Peter Tchir ( @TFMkts ) noted this evening - perhaps this mark-to-model irregularity is what the Fed discovered and gathered all the banks last week to ascertain just who has what exposure to whom? As we tweeted earlier, perhaps Iksil just got carried away - and please understand that while CDS do indeed provide leverage, so do many other financial instruments - it is not the instrument that caused this - it is the trader as "you don't hedge risk when you bet on momentum continuing you idiot!"
Addendum - VaR is almost entirely useless as a risk statistic in regard to the kind of highly non-linear positions that we are talking about here and so the doubling of JPM's VaR suggests the tail-risk (or conditional VaR) is considerably larger.
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This is so f'n great. I predict this is the Bear Stearns moment from Summer 2007.
Fuckin' A
Fuckin' chaos. The friend of the fucked and the damned. See you in Hell, Jamie fucking Dimon. Fuck you you fuckity fuck.
The lights are burning bright tonight at 33 Liberty Street. Dudley is trying to determine what the hell happened and who else has similar exposure to this debacle.
Geez that's generous.
Dudley hisself wouldn't know a CDO from a CLO from a CFO from an IdontNo if one of 'em pissed in his shoe while he was playing with himself.
At least Dimon has Blythe who is a wiz bang tried and seasoned pro at handling other people's hedges when the they turn into real money nightmares migrating mysteriously onto JP's own books. Hedges, other people's hedges, mind you and your own fucking business.
But never fear. The book is run out of London. No grasshoppers, not London as in the Disney failed reincarnation nothing like the glorious civil past of the '60's that some of us ex-pats still long for, but the City, where infinite rehypothication and no return of other people's monies ever takes place, Peter Pan.
And soothing all open wounds, Paul Krugman'll publicly speak in some obtuse evil breathed manner seemingly vilifying the banksters while pleading for more QE to ensure the survival of the monied classes and trickle down Obamanomics, while Ben opens the Discount Window late at night for a Red Light Whore's Special at Attractive Rates for His Favored TBTF Owners.
Or else they'll really fuck up that other client's hedge in the gold and silver markets and make that Other Asset category on the FED's balance sheet into Other Fucking Labilities, real quick.
Depends on whether we are talking log-normal or log-stable distributions ... tails are a lot fatter than most people think.
I wonder if Jamie really meant to say, "We are not going to panic or do anything stupid." Did he really want to be the first one to use the term "panic"?
The first thing they did wrong was to talk to anyone about anything.
First rule about Fight Club ....
JPM is only in trouble because they don't have another MF Global from which they can steal client funds to cover proprietary trading losses.
C'mon,
How bad could it be? WSJ says Jamie apologized....
http://online.wsj.com/article/SB10001424052702304070304577396511420792008.html?ru=yahoo&mod=yahoo_hs
WHOOPSIE!!!
It's not nice to pick on bankers. Jamie Dimon told me so! Besides, if they weren't doing God's work... who would? /sarc
Stop Picking on Bankers, JPMorgan Chief Sayshttp://dealbook.nytimes.com/2011/01/27/stop-picking-on-bankers-dimon-says/
“We try to do the best we can every day,” Mr. Dimon said during a panel discussion.
Mr. Dimon said at the World Economic Forum that he was sick of “this constant refrain — bankers, bankers, bankers.”
PS. Dimon, you filth. Bring you face right here to me and let me tell you what I really think of you!
Feels funny though that JPM would be one to shake this hard. We are all sure they will be bailed out, why so much noize? It's all thsi noize that has me looking into all different corners, askign what is it that they are hiding?
Something already happening is getting worse or soomething big is upcoming. Otherwise, 970 mil to absorb a single notch downgrade is chump change for a JPM.
Even the notional/real risks/losses issue is not IT, because IT has not been decisively cleard (ie. is notional real?).
Something much bigger stinks... Is China really crumbling?
Why is Putin missing the G8?
Is the Phillipines the center of the geo-political stress that has been building? Russ-ina vs. the rest/west?
ori
mt-whitney-to-tanggula-pass-obliquely
maybe they're looking at a failure to deliver, on silver contracts. the derivitives, guarding their shorts, are going to get very pricey, and they just keep shooting themselves in the dick. they have adversaries, that they have fucked in the past, and no one plays nice, when the stakes are this high.
Wait a goddamn minute! Did not the Fed today say that US banks are in much better shape?
Poker players every last one of them!!
Just a flesh wound.....bailout XVI imminent.
Yup Dela, we all remember what happened to Bear. But these are even weirder times. And this is JPM.
Very very strange. And if it is silver....
Take a read of this:
http://www.professorfekete.com/articles/AEFTheLastContangoInWashington.pdf
ori
Unfortunately, he is so hard to understand. Does this make sense to you?
"Recall that basis is the spread between the nearest futures price and the cash price. The grain elevator operator buys cash grain during the harvesting season to fill his elevators to the brim. He tries to buy cash grain at the widest possible basis (known as carrying charge). He is planning to sell it when the basis is getting narrower. His profit is just the shrinkage of the basis. What is the explanation of this peculiarity? When the grain elevator operator buys cash grain, he sells an equivalent amount in the futures market. He must hedge his inventory because the capacity of his elevator storage space is so huge that even a minor fall in the grain price will wipe out his entire capital, if his cash grain is left unhedged."
Escape, all he has done there is explain the very basis (!) and reason for what it means to hedge? He writes a little circularly (he is hungarian after all).
From my understanding, what he is hinting at is that if properly Hedged, using the word in the correct context, it's trading on basis that keeps the warehousers, (liek a CME) functional, which keeps the whole system chugging along.
Any experts?
ori
Great Resource! Thanks ORI.
Welcome Husk, I think Fekete is the sharpest Monetary theorist alive currently.
ori
Very difficult to wrap the brain around that one, but many of his other writings aren't so impenetrable.
http://www.professorfekete.com/articles.asp
Bro, if yu ever tried to make a livin outta the old-fashioned [barbarian!?!?]style produce n sell pre\post-reality style economic system, Feteke aínt hard to read, he's hard to refute...
man was exiled to the CodBanks Kingdom of NFLD, were's da boys was still flingin fish into flash freezers when the rest of Norte Merika had already descended in a "service economy" hell which Dante described so poignantly well five centuries before us...jus close enuff to the last bit of real economic action to get the gist of what real tings was all aboot!
In Merik astan, the last holdouts of the production as value formula, the old guard grain growers of the Great Midwest went down in November with the Corzine Corporal n CME Company. just like the last of the Louisiana shrimpers[in the Great Gulf golpe] before them.
This is it folks...what ZH was born for: that scion of the wealthy moneychangin messianic Sabbatean Smyrna\Salonikan, Jamie Papademetriou\not!\ Dimon is goin down like Capt Smiths' unsinkable cruiser, right before our eyes...no matter how many bought n paid for congressmen\senators\eurobots...an event that will prove, in retrospect, to have been but the tip of an international style iceberg!
Funny that a post-western Easterner\E'tranger like ORI was the first to sniff n scratch the really real deal that is goin down now, in live time. Congrats to yu, Vivek...yu will be legendary!
I can assure you that a person with his (dimon's) dgree of narcissistic personality disorder this won't phase him. There people believe they walk on water and are immune to the real world
LOL!
Literally!
Sure, by then, his shit was out of the ballgame, so why not?
beautiful knuk. just so damn beautiful.
Knockturn Alley, London.
Logged in just to say how much I enjoyed reading that...
me too, though I must admit I only understood about 25% of it.
I got about 21.7% of it...
That's about 24x more than I understood.
And, everyone expects the wonders of government to undrestand. The SEC, DOJ and the rest are like doctors who get a visit from the pharmaceutical salesman...'it is all good, now go back to sleep, and we will look out for America's best interests and won't do anything bad...we promise this time".
The governemnt here and in Europe have allowed all this to grow worse than before, and everyone kept their mouths shut inorder to make a few bucks.
"Wall Street gibberish." Zero Hedge specialty unfortunately. The nub of the issue is pretty simple: "is the risk you're taking on the pro growth side or the recession side?" this is a simple choice...on that must be made early since "it will be made often going forward." In other words "bulls and bears make money"...Zero Hedge is a bear and "there lingua gibbera" is oriented towards "impressing those of that ilk." As it is "they have been pretty much completely wrong both empirically and intently." I would recommend more clarity on THAT side of the ledger as well. Having said that "i'm the bull who is disgusted with the American banks" and have felt for some time "these folks will make the same mistake again" (as occurred in 37-38.) Haven't even been disappointed in the PLACE of Criminal Syndicate...let alone the timing. TOO MUCH MEDIA New York. It IS your undoing...and rightfully so. Indeed "the silence from GOVERNMENT is what is deafening" is it not?
Outstanding. Thank you.
CPA GAAP
http://www.youtube.com/watch?v=Wi3fBDLps00
Don't worry, most of it is a made up language anyway.
Designed to obscure the fact that they are just running the same old tired scams and cons they always have.
They just hope that YOU wont recognize their code words for what they really are.
there's a lot to what you say. the banksters do their worst shit with their pants on. were it not so, the people would be a lot wiser to them. seems impossible that so transparent a fraud as obama would be able to don the disguise of someone who cares about the rule of law and helping the little guy but get ready for fooling some of the people all of the time: http://www.salon.com/2012/05/10/wall_streets_immunity/singleton/
I don´t understand it I admit...never will nor want to.....but I would think that after 2008 and the end of the world that the bankers said we were close to...why the hell are they still doing it...what it tells me ..they lied..they still are lying...and they are crooks...bring back Glass- Steagle....and let the gamblers ...gamble without Government backing and more importantly Government money....but make it fair....no HFT´s
I believe the term is 'clusterfuck'.
I bet they all are spending the night at 33 Liberty:
Corzine, Blankfein, Greenspan, Obama, Summers,
Masters, Madoff, Gensler, Holden, Geitner, Dudley,
Holding hands in a circle, campfire, singing:
"We Shall Overcome" and "Cumbaja, My Lord".
Now that's something we can all agree on.
Strange bedfellows, etc. Fuck the bankers.
I didn't down arrow you.
http://www.youtube.com/watch?v=L2AoacQODik
gravity is puttin on the metals ..
Gravity is an interesting name for a vampire squid.
Repost:
Everbody I mean EVERYBODY should go out and buy some physical silver tomorrow, doesn't have to be a lot if we can get everyone on board we can do some damage. With JP Morgan floundering NOW is the time to put the squeeze on those naked shorts.
Second Friday in May? Time to take the silver away!
#SILVERFRIDAY
Start spreading the word tweets have been started, loop in hash tags like #endthefed #ronpaul #crashjpm #crashjpmorgan #silver #gold #commodities #tbtf #jpm
I will commit to a tube of silver maples 25oz.
I have two words for you. Monster Box.
I would if I had the funds!!!
It's definitely not going to be my first tube....
I'm surprised the shiney hasn't doubled to $60 on this news.
Another good reason to load up tomorrow morning...I tried to get the word out but I am a nobody in the metal space, spread the word!
At these silly discount prices it would be rude not to buy more. Took another 3kg off the London market. Wish I could buy more!
"I'm surprised the shiney hasn't doubled to $60 on this news."
Because it's all manipulated. They can't let silver run or the gig is truly up for the douche bags.
You're all welcome. *sigh*
Kind of like washing the car brings on a thunderstorm, I locked in the terms of sale on a good-sized handful of silver right before this news broke. Had to do it to free up some liquidity, figures it would be right before JPM takes one in the nose.
Well, you win some, you lose some- at least my stash is still 85% intact. Going to be hard to make that trade tomorrow, but seeing as how I'm not a bankster, I suppose I'll have to deliver the shiny. At least it's going to a good private home with steady hands, and not back into the market.
ah... if for no other reason than to support max's impersonation of jamie as an overgrown tapeworm ..... go buy an ounce tommorrow.
that goes for all you chinese barbarian relic collectors, indian'too poor to buy gold' untouchables , dinar investing pious folk ,and God fearin' libertarians reading zh...tell a friend- go buy an ounce tommorrow.
im all about the monster boxes as well. SO glad i got some at $49/oz too, im all about sticking it to JPM at every opportunity
I've got some at 49. Just remember that if you've kept the pressure on, you've probably alos got some at 15 (or lower).
Stack. Go boating. Pray that we all lose our shirts because of how comically wrong we were. Know that we won't.
so jelly.
Don't mind if I do.
occupy SILVER
100%
I'm in for 1k tomorrow, all Ag. And a couple of oz of PT when/if it touches 1450.
But I want to take advantage of the arbitrarily low price. :(
I was gonna lay off the buying for awhile and build up some more cash, but I'm down for $400-500 worth of silver tomorrow when the local shop opens. Feel free to unleash the ol' 3AM raid tonight, JPM, maybe I can squeak in one more ounce.
30 more oz on the way. Too bad I lost the rest of my stack in a terrible boating accident.
get a bigger boat...
...was gonna make my first boat joke. but really, i don't get it .... i just give all of mine away to friends. great gifts.
I'll join you. BTFD!
http://bit.ly/Kri8ed
BTFD!
Unfortunately, I see JPM surviving relatively unscathed but you have to commend Max/Paul/others for trying. Meanwhile, opportunity to add more PM hedge during a dip.
I blew my load at 30.50. Will commit to an additional 10oz.
i am supposed to pick up 100oz. this coming thursday... does that count?!
2x 1 kilo umicore andorra coinbars... headin' my way >:)
27 ASE and 4 Roosevelts!
Looks like you have gotten a lot of readers on board. How much silver do you plan to unload on them?
Daughter: "Daddy, what's a financial crises"
Jamie Dimon: "it's when daddy gets drunk and gambles a little too much with other peoples money dear"
An oldie but a goodie
Daughter: And how's that different for a crash, Daddy?
JD: A Crash is when we load 12 1/2 tons of the Treasury's gold on the Gulfstream and fly to the ranch in Paraguay with the Bushs, honey.
Daughter: Can I get a horse, Daddy?
el fuego
now that rocks
Agreed.
We can certainly agree about who is a COMPLETE FUCK. Jamie Dimon comes to mind. And his banker ilk. FUCK THEM. Twice. Or Thrice, if that's a word.
A guy like me from the west coast doesn't understand how a guy like Jamie can just walk around. What's wrong with New Yorkers? If he lived in my city, city busses would jump curbs at the sight of him, semis would run red lights seeing him in the crosswalk, and waiters at fine restaurants would dump super aids infested dressing in his salads.
If I saw him on the streets, I would run him down. And a jury of my peers would find me not guilty because I suffered from the first ever case of post partum depression discovered in a middle aged childless male.
@Margin Call
Where's is this? Oakland? Because most of the Left Coast I've visited is very aloof and leave-and-let-live. L.A. and San Fransisco are extremely corporatist. Admitedly, I don't know anything of the Pacific NW except for MSFT, flannel and disillusioned grundge rock.
We gave you Nirvana, Jimi Hendrix, Boeing, and we hate everything. Bill Gates has to give away half his money just not get called out for the piece of shit he is. Scott Bezos had to drive a Toyota.
If you are over 40, you remember when plumbing was new. We are like another planet.
How many times are you people gonna rebuild that shithole on top of the last fuck-up?
An entire town built and paid for by whores!
;)
You should've left the airport hotel.
Watts '65, SF '79 (Milk), LA '92,...
When were you born?
Hmmmm... We in the Midwest were kinda wondering the same thing about a guy like governor moonbeam. He must not go out in public.
Leave us not forget..
http://www.guardian.co.uk/business/2008/sep/20/wallstreet.banking
So are we to understand that hedge funds will take advantage of this to fleece JPM for whatever they are worth?
Yes but as long as they are not persuded to do otherwise......and that's the kicker.
Here's hoping the hedgies eff Jamie and the Dimons straight to hell.
Isn't there some kind of professional courtesy thing where sharks avoid eating other sharks? - sorry, no, that's lawyers isn't it - carry on guys - grind them into the ground and then just keep on going.
Like Jamie did with LTCM? or Bear Stearns?
The Bear folks have got to have some grim grins about now, as in "How's it feel, you mother fucker?"
Be careful who you shit on on the way up...
I bet the Hedges are working overtime to find out where these bets are placed......and I hope they rake them over the coals...
Jamie Dimon brings to mind some of the old saying we had when I was in the military many years back. Our language was pretty extreme! Thinking of Dimon just makes me want to say to him "Eat Shit and Die Mother Fucker!"
This scumbag fuck has no reason to exist. Look at those financial engineering positions that have left them up to their lips in shit!
Seriously, what is it all about. What has that sort of thing got to do with the real economy. People who work for a living, or build things or develop high tech or manufacture real things, they don't deal in this exotic CDS crap and all these out of control scheme to skim money out of the economy.
Dimon! Die mother fucker, die so we can all piss on your useless grave.
Fuckwit Dimon. Financial engineer in hell buddy!
I am not a religious person but I believe in good and evil.
There is day. There is night. There is nice. There is mean. There is helpful. There is fuck you you fucking leach, I am rich and go fuck yourself!
Dimon is fucking evil.
I feel you're still bottling stuff up Jack. Let it all out - we don't mind the occasional profanity - we are here to listen.
I wouldn't take the trail unless this MF was walking point.
Best post with high "fuck" index.
reminds me of the lyrics of Tupac song hit em up
Fuckin Cockroaches
Another take away for budding traders...
You can have a perfect quarter, a perfect year... and still blow from being stupid...
Oh NO!!! What would this do to all those naked paper shorts on silver and on gold shares? LOL
We already have seen people buying to cover their Nat Gas contracts to raise equity against other trades, thats for sure.
2008...
I wish the Hulk would squash Bernanke's head like a pea.
He encouraged risk taking/spec trades as the global economy falls apart, thus Wall Street buying up and cornering corp CDS's and every other derivative you can think of...warning shot was the liquidity pull on the TVIX a little while back.
This is just the beginning.
All hail TYLER, the all seeing eye on the zero hedge pyramid. You have saved us ur believers from being turned to sheeple and royally fucked by these banksters.
You deserve a Nobel Prize in a special category- Standing up for the little guys I.e. Those who cared to listen.
Go Jamie. This is great news. Now we may finally get some really serious financial regulation and even perhaps Glass Steagal back. This might even embolden Holder to start prosecuting all the nice boys that brought us the great 2008 meltdown. Who knows. We live in very interesting times.
Is it dead yet?
I'd poke it with a stick, but all I have is this gun...
Great stuff. Go Jamie. KIng of the crony capitalists. Jamie may get us Glass Steagle back after all and Holder may start doing some serious prosecuting for a change. This gives him great air cover. Thanks pal. Who would have thought you'd be helping us 99% to finally put you in and your illegal online betting buds in the pockey .
This is much bigger than Jamie ...he lost all of his Credibility last night......as well as JPM....the so called leader bank..no 1 bank..the best.....but also the US Banking system lost in the eyes of the world....as they see we still are playing at the casino...we did not learn or change anything after the 2008 crash...the end of the world they told us....so we will see monies and business leaving the USA...going closer to home...more security...looking for honesty...The USA just lost bigtime because of the Greed of the bankers ...just to eek out another .25% or something.....lost billions today in stock values...and probably trillions in the future in business deals....
Is this really a big deal? We are talking about JP Morgan here.
Where's MDB and Max Fisher to call us dumb and retards and tell us about the green shoots everywhere?
Hehehe . . . oh yeah, they gave their money to Dimon.
PRICELESS!
(or in their case . . . worthless)
MDB is Jamie Dimon, and Max is the Bernak. Didn't you get the memo?
and Robert Brusca, PhD is a Fed Reserve Twitter Bot
This reminds me of the Chinese gambler scenes in Luck.
This article is a technical masterpiece, and I applaud you. However, I am not a hedge fund trader. Lately I have been immersed in the science of deceit. At present the Fed has its back to the wall, as all the Feds do, and it is facing huge political blowback for bailing out its friends in '08 and really everyday thereafter. And so the Fed will refuse to defray its closest confidants losses for this very public and lamentable and confessed mistake, only to offset these losses with QE3 as the economy weakens for all sorts of unanticipated reasons in a few short weeks. This obvious error was no error at all - it provides political cover for a far more harmful (to ordinary people anyway) policy to appear on the horizon shortly. For such smart people, please don't ignore the obvious.
This "mistake" was no mistake at all. It is the first step in a sequential set-up. You're being set-up (again).
It's going to be like the helicopter scene from Margin Call.
What is the connection between BofA and MS.Chase? Other than the Fed.. I think student loans and Eur debt. Print off Eur and buy back college loans to win 2012 election, no other hope but to buy off the young voters. No jobs so eat the student loans to win.
Looks like it might be a bad week for Iksil.
@James_Cole
LOL. His punishment will be all-night clubbing with "The London Whale Trader" Alex Hope.
What the hell do they care?
It's like gambling in Las Vegas with someone elses money.
time for jamie dimon to get in front of congress and lie...to appese the crowd
"I'm sorry Congressman, I do not recall that sequence of events."
more like time for the organ grinder to get in front his stable of monkeys
You've grown an extra hyphen Slewie.
Whaddafuck is with all these guys?
How many we up to now, 4 or 5?
derivatives suck...
Gold Star
that was a great rant, k-nuk!
+1
Good eye...
Alaric - that is not a lie:
"I'm sorry Congressman, I do not recall that sequence of events."
That is plagiarism.
Where are the god-damned Silver Bears?
I need those Bears to tell me what the hell IG9 and HY and stuff means!
But I get the main part of the story which is that Jamie Dimon has got something to worry about - yes?
; )
HY --> High Yield
IG9 --> Credit index
He reeks.
Thank you Xela. CDS I think I understand already (some kind of insurance on someone else's debt, but the insurance never pays up because the insurance company never admit that a default has occurred - right?). Is '9' as in IG9 a reference to a time period - like September? Or 9 months from now?
Or ice 9?
9"
Short or long?
Or Plan 9?
Honestly, I'm feeling a bit Silver-Bear-dissillusionment. Those cartoon characters claimed to have inside info, but didn't have the clarvoyance to see this coming. Cartoon bears used to be the most reliable news source. Now what?
I guess they have to hibernate over the winter.
If they haven't done an update, carry on as last instructed.
My guess: the cartoon bears had a contact close to Bart Chilton.
What the bears didn't get and refused to believe is that Chilton is controlled opposition. He is there simply to deflect public anger away from the CFTC. He is not there to do anything useful about markets. The bears got played badly.
On a related note: at long last Ted Butler has recognized that Gensler - the smiling ex-Goldman sociopath, key member of the PPT, ally of Corzine - may not quite deserve the effusive praise that Butler gushingly bestowed in the past.
It's like Charlie Brown finally decided not to kick the football. Better late than never, Ted (you chump).
to sumo.
chilton is classic repressive tolerance right out of marcuse one dimensional man, and lets not get me started on the foul ferret fensler.
Wow I wish I could understand all this shit! This must be how these bastards get away with this shit. Not enough people that matter can understand any of this.
I don't understand it either, and if it is not biology, physics or chemistry and this difficult to make light of, it is obvious many of the players don't understand it either.
For this alone, it shouldn't be.
Me too. The more crooked the corkscrew gets, the deeper you can twist it into the cork.
Thank you Mendolover, Cherry Picker & Hubbs (sounds like the name of a law firm!) - I am glad I am not the only one here who is struggling!
I have been here two short years and I am still learning the lingo. The first six months were a brutal learning curve with me having to continually look up the definitions of abbreviations every day.