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JPMorgan Trader Accused Of "Breaking" CDS Index Market With Massive Prop Position

Tyler Durden's picture


Earlier today we listened with bemused fascination as Blythe Masters explained to CNBC how JPMorgan's trading business is "about assisting clients in executing, managing, their risks and ensuring access to capital so they can make the kind of large long-term investments that are needed in the long run to expand the supply of commodities." You know - provide liquidity. Like the High Freaks. We were even ready to believe it, especially when Blythe conveniently added that JPM has a "matched book" meaning no net prop exposure, since the opposite would indicate breach of the Volcker Rule. ...And then we read this: "A JPMorgan Chase & Co. trader of derivatives linked to the financial health of corporations has amassed positions so large that he’s driving price moves in the multi-trillion dollar market, according to traders outside the firm." Say what? A JPMorgan trader has a prop (not flow, not client, not non-discretionary) position so big it is moving the entire market? And we are talking hundreds of billions of CDS notional. But... that would mean everything Blythe said is one big lie... It would also mean that JPMorgan is blatantly and without any regard for legislation, ignoring the Volcker rule, which arrived in the aftermath of Merrill Lynch doing precisely this with various CDO and credit indexes, and "moving the market" only to blow itself up and cost taxpayers billions when the bets all LTCMed. But wait, it gets better: "In some cases, [the trader] is believed to have “broken” the index -- Wall Street lingo for the market dysfunction that occurs when a price gap opens up between the index and its underlying constituents." So JPMorgan is now privately accused of "breaking" the CDS Index market, courtesy of its second to none economy of scale and fear no reprisal for any and all actions, and in the process causing untold losses to, you guessed it, its clients, but when it comes to allegations of massive manipulation in the precious metals market, why Blythe will tell you it is all about "assisting clients in executing, managing, their risks." Which client would that be - Lehman, or MFGlobal? Perhaps it is time for a follow up interview, Ms Masters to clarify some of these outstanding points?

From Bloomberg:

The trader is London-based Bruno Iksil, according to five counterparts at hedge funds and rival banks who requested anonymity because they’re not authorized to discuss the transactions. He specializes in credit-derivative indexes, an off-exchange market that during the past decade has overtaken corporate bonds to become the biggest forum for investors betting on the likelihood of company defaults.


Investors complain that Iksil’s trades may be distorting prices, affecting bondholders who use the instruments to hedge hundreds of billions of dollars of fixed-income holdings. Analysts and economists also use the indexes to help gauge interest rates that companies must pay for new credit.


Though Iksil reveals little to other traders about his own positions, they say they’ve taken the opposite side of transactions and that his orders are the biggest they’ve encountered. Two hedge-fund traders said they have seen unusually large price swings when they were told by dealers that Iksil was in the market.

So how long until Bruno Iksil, and his massive one way bet, becomes the next Glenn Hadden, or the next Howie Hubler, or the next Boaz Weinsten? And how long until US taxpayer have to bail him out, either with direct rescue money, or with commingled deposits used to plug trading losses? Because MFGlobal was just an appetizer as to how JPM operates with "segregated" money.

Repeating the punchline again, because it bears repeating.

In some cases, Iksil is believed to have “broken” the index -- Wall Street lingo for the market dysfunction that occurs when a price gap opens up between the index and its underlying constituents, the people said. The persistence of price dislocations has frustrated some hedge funds that were betting on the gap to close over time, the people said.

And that, for those confused, is how JPMorgan operates: they lie about everything, fully aware they have perpetual immunity because they are more powerful than the Fed (just recall Jamie Dimon's symbolic spitting in the face of Ben Bernanke), they are a tri-party repo dealer thus in the center of the entire shadow banking system, and have the biggest single-bank derivative exposure in the world, at $70 trillion as of December 31.

JPMorgan is modern finance.

And because of they they can and will get away with everything, lying on prime time TV most certainly included.

Yet while JPMorgan may manipulate the gold, silver, or any other market, for its or the Fed's agenda, there is a silver lining: it allows everyone to buy physical assets at artificially deflated paper spot prices. And for that, JPM should be thanked. Because until the grand reset takes place, JPMorgan will never be held accountable for any of its actions in the current status quo regime. Period.


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Thu, 04/05/2012 - 20:42 | 2320956 maxmad
maxmad's picture

Black swan, bitchez!

Thu, 04/05/2012 - 20:49 | 2320968 nope-1004
nope-1004's picture

Blythe Swan, Muppitchez!

Like any of us for a second thought she was telling the truth, and that JPM acts honorably in a rehypothecated jungle.

Remember, Blythe is one of the inventors of the CDS.  The firm is corrupt and she is a liar.



Thu, 04/05/2012 - 20:55 | 2320973 GetZeeGold
GetZeeGold's picture



Paging Blythe Masters......clean-up on aisle 5.


Thu, 04/05/2012 - 20:55 | 2320983 LetThemEatRand
LetThemEatRand's picture

At least now we know why they trotted out Blowthe Masters on Everythingisgreat TV today.

Thu, 04/05/2012 - 20:57 | 2320987 GetZeeGold
GetZeeGold's picture



No Muppets were killed during the taping of the Everythingisgreat TV show today.


.....a couple were really roughed up though.


Thu, 04/05/2012 - 20:58 | 2320989 Marginal Call
Marginal Call's picture

Muppets get fisted.  That's just how chit works.

Thu, 04/05/2012 - 21:19 | 2321018 GetZeeGold
GetZeeGold's picture



They should have known that going in. It was definitely in bold letters in the contract.


Squeeze your fingers together and took at's that.....sign here Muppet.


Fri, 04/06/2012 - 00:41 | 2321328 Oh regional Indian
Oh regional Indian's picture

Whoa! blythe lied? Blythely too?

I'm telling you, more convinced than ever that these key characters are chosen for their names. 

Diamond blythely told Dimon to Crash-the-Curry Trade so that Fink could turn over the Blackstone and...... you can make a whole story, and it all fits.

Lies and NUMBers. 

Got to admit i was slightly taken in for about 45 seconds yesterday. Perhaps it's the accent.



Fri, 04/06/2012 - 01:31 | 2321362 strannick
strannick's picture

Email the CFTC Commisioners, bitchez. Tell them about the discrepencies between Ms. Masters CNBC claims and Mr. Iskil's trades. Dont spare the whip on these scoundrels ; ; ;

Fri, 04/06/2012 - 01:43 | 2321380 AldousHuxley
AldousHuxley's picture


at the depths of the Panic of 1893, the Federal Treasury was nearly out of gold. President Grover Cleveland accepted Morgan's offer to join with the Rothschilds and supply the U.S. Treasury with 3.5 million ounces of gold.


In 1912, the Pujo Committee found that a cabal of financial leaders were abusing their public trust to consolidate control over many industries: the partners of J.P. Morgan & Co. along with the directors of First National and National City Bank controlled aggregate resources of $22.245 billion. Louis Brandeis, later a U.S. Supreme Court Justice, compared this sum to the value of all the property in the twenty-two states west of the Mississippi River


As required by the 1933 Glass–Steagall Act, the "House of Morgan" became three entities: J.P. Morgan & Co., which later became Morgan Guaranty Trust; Morgan Stanley, an investment house; and Morgan Grenfell in London, an overseas securities house.


Easy to do when Americans are proud idiots. Repeal of Glass Steagall allowed banksters to do a repeat of early 1900s. Government is broke, so borrows from private capital of banksters giving banksters power over nation's laws and resources.

Bankster partying >>> Depression >>> War

Fri, 04/06/2012 - 11:41 | 2322255 Nukular Freedum
Nukular Freedum's picture

I dont know if this little thought experiment would work in practice? Just posted it on my blog:

How to break silver with no money down: 

if rumours regarding the manipulation of the silver market by large government related interests (utilizing JP Morgan as a vehicle) are true and if (as is certainly the case) the paper silver market (slv etc.) is run on a fractional reserve basis then it would certainly be possible for a large enough entity, if so interested, to expose these facts (and crash the paper silver market) for essentially no risk. 
 How might this stupendous feat be achieved you ask. Well in essence the entity (maybe a govenment or bank I don't know, maybe a foreign power such as Iran) would purchase enormous amounts of the metal for physical delivery (enough to test the aforementioned sceptical hypotheses) whilst simultaneously purchasing an off-setting position in the paper market. The entity would have to insist on physical delivery of course and if the exchange (presumably Comex) could not deliver, well, one would think, that would amount to cornering the market in physical silver and would prevent contracts held by other parties being fulfilled as well. All hell would break loose, no? And if the pressure were to be maintained by the entity concerned it would surely break the paper market ultimately?
 How to profit from someone someday doing something like this? Simply mimick their position (long physical short paper) and wait indefinitely. Double win for no risk, no?

Fri, 04/06/2012 - 11:44 | 2322270 Nukular Freedum
Nukular Freedum's picture

My Apologies: the header should read;

How to break Paper Silver with no Risk

Fri, 04/06/2012 - 08:24 | 2321631 BeetleBailey
BeetleBailey's picture

You assume these sock puppets actually read their emails. And if they do, heed them. All it is - emailing them - and exposing your intelligence, is alert Homeland Security to link you with their ever-expanding data base of "dangerous people to be watched closer".

Stay safe my friend.

Sat, 04/07/2012 - 06:24 | 2324225 dufferin
dufferin's picture

Fear is what they want.

Fri, 04/06/2012 - 10:13 | 2321971 Thisson
Thisson's picture

There is no discrepancy.  Masters was speaking about commodities.  Iksil is in credit markets.  CFTC has no jurisdiction in credit markets...

Fri, 04/06/2012 - 01:30 | 2321366 AldousHuxley
AldousHuxley's picture

JP Morgan doesn't exist for investors, it exists to protect the super elites' (Rockefellers, Rothchilds, Morgans, etc.) wealth by having their hands in every industry so that nobody will top them.


When you become a billionare, you put your work in government and wealth in banks to diversify. When you own the land and its law you don't care which particular industry does well as risks are spread around.


Ironic thing is that people do banking with the biggest banks (wealthiest owners) because of fear and rich get richer because smaller poor banks (rich but not superrich) are not given the chance.


You never get quality from biggest anything (government, non-profit, restaurants, businesses) because quality doesn't scale. Thus winner takes all games (government, banks, religion)  that never reset always end up serving McDonald's quality service and products. Only thing you get is decreased risk, and bulge bracket banksters took advantage of this trust by gambling with it.


Give a chance to the smaller banks who can only compete on superior product/service....

Fri, 04/06/2012 - 11:32 | 2322227 Deo vindice
Deo vindice's picture

Give a chance to Credit Unions. I moved from bank to CU years ago and have never regretted it. (Although even with them I am a 'minimalist' customer)

Thu, 04/05/2012 - 21:14 | 2321026 macholatte
macholatte's picture




Is Blythe any relationship to Rick Masters?


Start at 0:50



Thu, 04/05/2012 - 21:17 | 2321033 GetZeeGold
GetZeeGold's picture



It's all about that.


Start at 0:00


Thu, 04/05/2012 - 21:55 | 2321047 peekcrackers
peekcrackers's picture

Tyler .. cheers to your relentless hard work for the quest to expose the truth .

Thu, 04/05/2012 - 22:33 | 2321191 CrazyCooter
CrazyCooter's picture

Heh, maybe Blythe will call in dead ...

Sorry, I love this song. It must be the 1/4 British ancestry ... explains my horribly dark/dry sense of humor ... or maybe I am just autistic ... you decide ...

Fuck, folks, the markets are calling in dead ... for FSCKING years now ... and investors are like the employer that can't do the math.

FYI, the produced recording is MUCH better, this is all I could find. I think he tries to hard at times, but the song is good. This is the only performance on youtube, which is live, and not that good, but ...



Thu, 04/05/2012 - 22:50 | 2321211 jeff montanye
jeff montanye's picture


Thu, 04/05/2012 - 21:31 | 2321070 SGS
SGS's picture

Made a call today.  Word is Blythe does not like penis anymore.  No joke.  Just sayin'.  Got Poon?

Thu, 04/05/2012 - 22:08 | 2321156 El Oregonian
El Oregonian's picture

Intellectuals solve problems; geniuses prevent them.- Albert Einstein

Thu, 04/05/2012 - 22:26 | 2321180 palmereldritch
palmereldritch's picture

BHO should have had Rick do the Birth Certificate

Thu, 04/05/2012 - 22:01 | 2321140 Papasmurf
Papasmurf's picture


Thu, 04/05/2012 - 23:56 | 2321289 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Now we go on about those muppets again. Blah blah blah. Don't you know that robbing from muppets is our game.

-Wall Street

Fri, 04/06/2012 - 00:22 | 2321315 old naughty
old naughty's picture

we did a lot more than robbing...

Thu, 04/05/2012 - 20:58 | 2320988 NewThor
NewThor's picture

JPMorgan Chase and The Federal Reserve are hydra heads of the same


Wait until the world finds out the Planets and the Sun matter...

and the real Masters arrive.


Fri, 04/06/2012 - 00:24 | 2321318 old naughty
old naughty's picture

can we muppets count on it?

Thu, 04/05/2012 - 23:20 | 2321248 Wakanda
Wakanda's picture

Also explains why she performed so poorly.

They are scared shitless.  It's gonna be a loooooong weekend at the Hamptons.

Thu, 04/05/2012 - 20:55 | 2320981 jcaz
jcaz's picture

We'll never hear from that chick again-  the JPM lawyers are swarming her as we speak,  she's personna non grata to the outside world now;

Pity-  I was hoping she'd "help" me........

Thu, 04/05/2012 - 21:07 | 2321014 NewThor
NewThor's picture

Has there been a physical sighting of Corzine in the last 3 months?

Thu, 04/05/2012 - 22:03 | 2321144 Papasmurf
Papasmurf's picture

He's recoverying nicely from his plastic surgery makeover.

Fri, 04/06/2012 - 09:08 | 2321784 GetZeeGold
GetZeeGold's picture



Hes in France with his buddy Roman Polanski.


Thu, 04/05/2012 - 22:20 | 2321169 brettd
brettd's picture



Thu, 04/05/2012 - 23:01 | 2321225 zanez
zanez's picture

Holder?  Bwahahahahahaah.

Thu, 04/05/2012 - 23:08 | 2321229 IrritableBowels
IrritableBowels's picture

Fucking bitch-ass mutherfuckers

Thu, 04/05/2012 - 21:41 | 2321097 centerline
centerline's picture

+1.  Just another modern day gangster.  They know they are not working in the best interest of humanity or nation.  This is power and wealth at any cost.  Consequences don't matter - especially when the system is captured.  Kill or be killed mentality.  A blood sport at this point.

As always, human evolution tramples it's greatest promises with typical Alpha behavior.  Maybe some other species will do better than us.  I doubt it though.  Which leads to the hypothesis that the reason we dont see more intellegent life in the universe that is capabable of interstellar travel is that most intelligent species don't outlive thier industrial age (adolescence).

Thu, 04/05/2012 - 23:14 | 2321233 IrritableBowels
IrritableBowels's picture

See also: japan/nukes.

The 'native americans' had it fucking right.
Those uncivilized bastards.

Custer was a fucking prick.

Thu, 04/05/2012 - 23:27 | 2321254 Kassandra
Kassandra's picture

Either that or we are strictly "observe only" for the safety of the observers. Hell, I wouldn't be here but I was born here. My bad luck.

Thu, 04/05/2012 - 23:32 | 2321259 r00t61
r00t61's picture

The Fermi paradox - a theory that I happen to agree with.

Fri, 04/06/2012 - 01:32 | 2321367 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

are you sure about that?


Thu, 04/05/2012 - 22:05 | 2321150 jekyll island
jekyll island's picture

She didn't look as pretty on CNBS as she does in photos, and the accent just doesn't do it for me.  Sorry Blythe, gonna have to turn the page and move on.  I hope you understand, it's me.  I guess I'm just not into you.  

Thu, 04/05/2012 - 23:38 | 2321265 vast-dom
vast-dom's picture

Only thing left is for these people and their institutions to get sucked up from below into some horrific earthquake blackhole -- everything else is really too kind a fate.

Thu, 04/05/2012 - 23:47 | 2321277 beaker
beaker's picture

CNBC is getting farther and farther from reality every day.

Thu, 04/05/2012 - 20:48 | 2320969 GetZeeGold
GetZeeGold's picture



No no no.....Blythe just told us this could never happen!


Thu, 04/05/2012 - 21:03 | 2321007 NewThor
NewThor's picture

And the roulette ball bounces into the dreaded and mytholgical TRIPLE ZERO.

Awwww. 1 Quadrillion bet loss.

Can somebody please paper over this whole?

Hey. I bet on the Quadruple Texas Tornado + Solar Maximum-ing Sun triangle filament growth, but I didn't bet in $$$$'s, Euros, silver or gold.


Thu, 04/05/2012 - 21:58 | 2321132 peekcrackers
peekcrackers's picture

Blythe " we just don't do that " ... fuck off ass wart

Thu, 04/05/2012 - 21:37 | 2321087 Buck Johnson
Buck Johnson's picture

No kidding, I never heard about this institution and it has at least a Trillion if not more that is warping the CDS market.  I've said this before, I think that there is a few monsters under the dark sea of finance that we have seen the shape but not the creature.  When it breaks the water surface we will know for a fact.  Also if you think that MF Global was the only one doing what they did, I have a bridge to sell you dirt cheap.

Thu, 04/05/2012 - 21:42 | 2321099 Blythes Master
Blythes Master's picture


Fri, 04/06/2012 - 06:37 | 2321539 3MonthsZHober
3MonthsZHober's picture

Golden Saks had nothing to do with the production of this article.

Thu, 04/05/2012 - 21:58 | 2321134 stocktivity
stocktivity's picture

Joe Six Pack has no chance....It's all Bullshit!

Thu, 04/05/2012 - 22:11 | 2321160 LongBalls
LongBalls's picture

Damn it!!!!! When will you people wake up. ABORT. Pull your fiat. Buy some gold and put your money to work else where! YOU CAN NOT BREAK THE LAW. Thus you have no chance of beating these theives.

When you engage in false weights and measures you will get them as payment. EXIT now.

Fri, 04/06/2012 - 07:03 | 2321562 Widowmaker
Widowmaker's picture

"When you engage in false weights and measures you will get them as payment."


Thu, 04/05/2012 - 22:22 | 2321172 Jim in MN
Jim in MN's picture

Jail all the top bankstaz on trumped up charges like they'd use on black teenagers and let them have a hearing after a couple of years.


Fuck this shit.

Thu, 04/05/2012 - 22:36 | 2321196 quartshort
quartshort's picture

NDAA 'em! Bitch fucks one & all.

Fri, 04/06/2012 - 00:01 | 2321294 SillySalesmanQu...
SillySalesmanQuestion's picture

Eat shit and die too Blythe Blowhard.

Thu, 04/05/2012 - 23:14 | 2321237 williambanzai7
williambanzai7's picture


Fri, 04/06/2012 - 00:11 | 2321305 palmereldritch
palmereldritch's picture

You really airbrushed out her premature aging there Bill...hard to believe in reality she's only 43.  I guess all that evil catches up with her in one form or another.

Have you considered a mock up on Blythe as the Silver Serfer ?

Fri, 04/06/2012 - 07:10 | 2321570 stocktivity
stocktivity's picture

So this guy trades at JP Morgan and distorts the market with his trades. Now tell me there are not other traders at JP Morgan who know what he will be trading and when. Now tell me that since his trades "distort the market", these other traders at JP Morgan are not on the side of the "house".  You and I, as small investors have no chance against the "house" when it's a stacked deck. It's all Bullshit!

Thu, 04/05/2012 - 20:47 | 2320957 slewie the pi rat
slewie the pi rat's picture

they lie about everything



Thu, 04/05/2012 - 21:02 | 2321002 WillyGroper
WillyGroper's picture

Oh, perish the thought!

Thu, 04/05/2012 - 21:06 | 2321013 NewThor
NewThor's picture

Marketers, Politicians and Bankers make lousy Watchmen.

It says that shit in the Torah, the New Testament, on Buddha's light bright, the Koran, and in every Shel Silverstein book ever written.


Thu, 04/05/2012 - 21:21 | 2321042 Zero Govt
Zero Govt's picture

Regulators make fuking lousy watchmen too... and it's their job!

Thu, 04/05/2012 - 21:27 | 2321058 Zero Govt
Zero Govt's picture

"But... that would mean everything Blythe said is one big lie..."

No job too grotty, the Regulators can cover this in whitewash then sweep it under the rug in no time ...anything for a major 'client' (and career stop) of the SEC

Thu, 04/05/2012 - 22:16 | 2321125 NewThor
NewThor's picture


Thu, 04/05/2012 - 21:53 | 2321126 NewThor
NewThor's picture

Turn over a rock where there is 'Regulation' and you will find the worst kind of corruption.

Thu, 04/05/2012 - 21:54 | 2321127 cowdiddly
cowdiddly's picture

oh I guess after about two years in court the fine will be Two million max.

Thu, 04/05/2012 - 20:44 | 2320959 Gooseleg
Gooseleg's picture

Cheap silver bitchez!

Thu, 04/05/2012 - 21:09 | 2321017 NewThor
NewThor's picture


Guns and Butter

turns into...

Peanut Butter and Lead.

If you can't hold your ground,

how can you protect your gold and silver?

Thu, 04/05/2012 - 20:44 | 2320961 EvlTheCat
EvlTheCat's picture

Hey MillionDollarDipShit what do you have to say about this?

Thu, 04/05/2012 - 20:59 | 2320997 EvlTheCat
EvlTheCat's picture

hahahahaha keep them coming!

Thu, 04/05/2012 - 21:28 | 2321061 GetZeeGold
GetZeeGold's picture



Apparently nothing yet......but then again....someone junked you.


Thu, 04/05/2012 - 20:45 | 2320964 Arnold Ziffel
Arnold Ziffel's picture

Boyz will be Boyz.

Thu, 04/05/2012 - 20:47 | 2320966 XitSam
XitSam's picture

Can someone explain what is a CDS index?

Thu, 04/05/2012 - 20:54 | 2320982 nope-1004
Thu, 04/05/2012 - 20:59 | 2320998 XitSam
XitSam's picture

Thanks. I thought some more after posting and thought I had it figured out but I was wrong.

Fri, 04/06/2012 - 01:43 | 2321381 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

It's in the Bible.


Fri, 04/06/2012 - 11:34 | 2322241 Deo vindice
Deo vindice's picture

Sorry. I could only give you one uptick.

That comment deserved a hundred.

Thu, 04/05/2012 - 20:54 | 2320967 Alexandros
Alexandros's picture

The problem, as one may see, started from the place that had the power to do that and this is the center of global imperialism. It started in USA. It is there that private loan sharks made it and took a “pump” ...the American economy “pump” ...that "pump” that would allow them to interfere with the USA “breath” make it “turbo” make it unnatural. Why there? Because the USA have a very special particularity. They had a particularity that offered them a special “physiology” ...a “physiology” that no other national state had ever before in the global history ...not even the British empire. Even though it is a national state, they could finance national states due to its rank in global hierarchy. They could breath in an “enhanced way”, because their unnatural profits did not "blow them up", they were discarded in the form of financial assistance to the European national states instead. This means that FED kept “pumping up“ but there was a “pressure” relief “tube” that was leading to Europe.

The over-profits of the shark loans in the USA not only did not turn their dollars into inflationary money, but also they were multiplied and exported abroad in the form of “investments”. The illegally “increased" dollars of the internal USA economy become tons of “investments” abroad. FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing” ...the first state that burdened the international economy with its “breathing” ... and this is where everything started ...this is where the current shabbiness started, Loan sharks that are international today and “hide” behind the vague term of “Markets” are in fact the old loan sharks of the American market. They by controlling the USA monetary system “pumped in air” constantly in order to make profit from the USA “breathing”.

What’s the meaning of “pumping in air”? It means that by having FED under their control they kept printing new money and releasing it to the economy. What were they aiming at? They aimed at constantly increasing the American economy values. Houses, stores, lands, services and also wages, they kept increasing their economic aggregates ...artificially ...due to the “pump”. The profit from this method was that they kept presenting increased earnings even at the expense of the economy’s reason. Since 1945 up to the late 80’s they kept doing the same thing. They made Americans keep changing houses based on their increasing salaries, so that the values of the houses keep rising. They made Americans look for the “best” Universities so that they make all of them more expensive. They made Americans keep changing cars so that commercial companies have over-profits. They threw tons of “cheap” money in the market to collect increasingly greater “volumes” of that.

A normal economy never does such permanent “running” because it cannot handle it. It cannot handle it because it shall destroy its currency shall make it inflatory shall lose its value its value is falling it shall also draw along the economy values. However, American economy was not a normal economy is the Global power economy ...that economy in which the leaders and loan sharks wanted to “produce” in the interior tons of dollars and “export” them abroad in the form of “help” or “investments” etc.


Global Debt Crisis


Thu, 04/05/2012 - 21:15 | 2321031 Whoa Dammit
Whoa Dammit's picture

+1 for the phrase "the current shabbiness."

Thu, 04/05/2012 - 23:07 | 2321228 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

It started when the first parasite convinced others that a pretty piece of paper held the same value as a coin made of gold or silver. A user and abuser who only cares about getting more for themselves.

These parasites have always been around. Back in the cave man days they told their friends who were going hunting, that they would stay back and clean some skins. While their friends were out almost getting killed for the group the parasite would eat food he did produce all the while trying to screw his friends spouses or daughters.

Same shit today. It has nothing to do with geography or citizenship in any country.

Fri, 04/06/2012 - 14:07 | 2322695 smiler03
smiler03's picture

It might be me but I think you missed the point that the early notes said:

I Promise to Pay the Beared on Demand the sum of..... "n" pounds. That is to say, if you wished you could trot along to the Bank of England and they would redeem the notes for PHYSICAL coins made of precious metals.

I'm uncertain when that ceased to be the case.

Thu, 04/05/2012 - 20:52 | 2320976 hamster wheel
hamster wheel's picture

1912 - J.P. Morgan holds the accounts of the U.S. Government

1913 - Federal Reserve is established; takes over most accounts of the U.S. Government from J.P. Morgan

2012 - J.P. Morgan slaps Federal Reserve down; owns U.S. Government

Thu, 04/05/2012 - 20:59 | 2320995 Everybodys All ...
Everybodys All American's picture

My thoughts exactly. You have to think that JPM is a proxy for the FED / PPT and whoever else believes this manipulation of the markets upward bias is necessary.

Thu, 04/05/2012 - 20:53 | 2320978 Marginal Call
Marginal Call's picture

They might have been able to string the system along better had they not encountered hard limits.  They can supress gold and silver, but they stand zero chance of supressing needed consumables like oil and food that are facing scarcity issues.  And since oil is an input on food, and 40% of corn is an input on oil they are in a double fucked spiral there. I'll be keeping an eye on the weather-any freezes after everything has been tricked into late spring is going to be a buy.  Easing or not.


Thu, 04/05/2012 - 20:59 | 2320991 slewie the pi rat
slewie the pi rat's picture
Why People Hate the Banks

A few months ago, I was standing in a crowded elevator when Jamie Dimon,

Thu, 04/05/2012 - 21:59 | 2321137 The4thStooge
The4thStooge's picture

I couldn't imagine having to share an elevator with him.

Thu, 04/05/2012 - 20:59 | 2320994 bugs_
bugs_'s picture

Maybe Sack is making room for Iksil.

Thu, 04/05/2012 - 21:01 | 2321000 Goldilocks
Fri, 04/06/2012 - 10:44 | 2322092 RallyRoundTheFamily
RallyRoundTheFamily's picture

+1 for Heavy Metal reference

Thu, 04/05/2012 - 21:03 | 2321006 UGrev
UGrev's picture

I can't wait for the mother fucking party to start ... it's going to be a blood bath.. literally. 

Thu, 04/05/2012 - 21:05 | 2321011 israhole
israhole's picture

Zero Hedge kicks ass.

Fri, 04/06/2012 - 00:30 | 2321324 Cursive
Cursive's picture


ZH is an 800 pound gorilla with a chainsaw for a penis.

Thu, 04/05/2012 - 21:13 | 2321024 narnia
narnia's picture

It's not really an index if it decouples from its underlying components.  Lets call it what it is, a synthetic instrument that pretends to be an index.  

Thu, 04/05/2012 - 21:15 | 2321030 nope-1004
nope-1004's picture


Thu, 04/05/2012 - 21:52 | 2321121 ZeroPower
ZeroPower's picture

Alas, all ETPs created to track something are quite synthetic by nature (whether tracking the underlying physically by holding a "basket", or synthetically through swaps) in this sense, no product will ever be a perfect 1:1 of the original so long as arb opportunies exist on the markets.

Indeed, when decoupling occurs is where stuff can get ugly, especially if traders can't arb back out the inefficiency.

Thu, 04/05/2012 - 21:37 | 2321034 Zero Govt
Zero Govt's picture

JPMorgan Trader Accused Of "Breaking" CDS Index Market With Massive Prop Position

Give that man a bullet ...and Dimon too while you're at it

World put to rights in nano-seconds. Sorted.


Thu, 04/05/2012 - 21:21 | 2321041 JLee2027
JLee2027's picture

Amazing timing, coming right out after the Blythe interview. Has someone named Jamie set up Blythe for the fall?

Thu, 04/05/2012 - 21:22 | 2321043 Miss Expectations
Miss Expectations's picture

It would be difficult to invent an more Dickensian name than Blythe, um, dominatrixish.

Thu, 04/05/2012 - 21:30 | 2321067 Zero Govt
Zero Govt's picture

she's a very sick woman surrounded by even sicker men ..banking just doesn't get any better than that

Thu, 04/05/2012 - 22:09 | 2321159 ekm
ekm's picture

I remember there was a Lehman woman manager who appeared on CNBC only days before it pulverized. She said that Lehman was...strong,,,great and all good things.

Thu, 04/05/2012 - 23:58 | 2321290 XitSam
XitSam's picture

And was it Ken Lay touting the stabilty of Enron at same time it was tanking?  And now Blythe and Ben ...

Fri, 04/06/2012 - 00:07 | 2321302 ekm
ekm's picture

Something is about to happen.....................

Thu, 04/05/2012 - 21:27 | 2321059 ekm
ekm's picture

Same as in communism. The more they interevene the more they do idiotic moves, the more they don't know what they are doing they more they think they will never get caught.

Greece seems to have something to pay on April 20 nd another payment on May 12.

Athens News says that the greek gov has stolen the money unversities had deposited in greek banks.

Bernanke and Dimon have a meeting.

Something is getting close to happening. Remember, government think they can control everything until.........they can't. Then............ Niagara Falls.

Thu, 04/05/2012 - 22:09 | 2321158 brettd
brettd's picture

At some point, I wonder when the many decent CEO/leaders in america are going to start stepping up 

and taking a stand against the insanity.  There are plenty of people who are NOT schmucks.

Thu, 04/05/2012 - 22:13 | 2321162 ekm
ekm's picture

Right now there is Central Planning of the Economy but NOT Central Planning of Life ...yet.

Should Obama win in Nov, you americans may end up like us here in Canada and most of people in Western Europe, a partial central planning of life. It starts with the odious Universal Health Care.

November is the make a right turn.

Thu, 04/05/2012 - 23:17 | 2321243 Atomizer
Atomizer's picture

Nice observation.

Thu, 04/05/2012 - 23:20 | 2321247 ekm
ekm's picture

Thx but it is more than that. Its life experience.

Thu, 04/05/2012 - 21:30 | 2321068 steelhead23
steelhead23's picture

OK, I readily admit that I don't wholly grasp what's going on here, but if Bruno is placing huge bets on corporate failures, why would any corporation in the world do business with JPM?  I mean, to do business with JPM, you have to show them your books.  If you have lots of assets but bad cash flow (takeover target) and went to JPM for a line of credit, you could suddenly find your stock price declining (Bruno would short you), making you an even more tempting takeover target?  And dear God, combine this with JPM's ability to move the stock markets using money borrowed from the Fed (I understand they are taking used toilet paper as collateral).  Also, some rubes over at MarketTicker believe a stock market crash is imminent.  Wouldn't JPM stand to own the universe if Bruno bet the house that the stock market would crash?  Uh, is this legal?

Thu, 04/05/2012 - 21:38 | 2321089 ekm
ekm's picture


What kind of question is that? Is it legal????

JPM thinks

Thu, 04/05/2012 - 21:52 | 2321118 Marginal Call
Marginal Call's picture

I'm curious to what his prop position is and why he's in CDS.  The CDS market has a confidence issue after MF Global and Greece, everyone in the world knows they are virtually worthless.  So who's his target?  Who's he trying to liquidate?

Thu, 04/05/2012 - 22:07 | 2321154 ekm
ekm's picture

I'm thinking JPM want to lure in and liquidate greek bond holdouts.

Fri, 04/06/2012 - 11:34 | 2322240 NotApplicable
NotApplicable's picture

Everybody not in the club.

Thu, 04/05/2012 - 21:30 | 2321069 ekm
ekm's picture

And for those who thing that the Banking Industry runs the White House, this should prove them wrong.

The Military Industry runs the WH and the Banks.

Fri, 04/06/2012 - 06:56 | 2321553 Ace Ventura
Ace Ventura's picture

The BANKS OWN the Military Industry and the WH.

There, fixed it for ya.

Fri, 04/06/2012 - 10:44 | 2322089 RallyRoundTheFamily
RallyRoundTheFamily's picture

Wow I guess there is your answer on how they will deal with the rioting.

Thu, 04/05/2012 - 21:31 | 2321072 Goldilocks
Goldilocks's picture

Rush~roll the bones (6:10)

Thu, 04/05/2012 - 21:43 | 2321104 peekcrackers
peekcrackers's picture

plus 1 goldilocks .. I am rush Fan

Fri, 04/06/2012 - 11:38 | 2322247 NotApplicable
NotApplicable's picture

Funny, reading this article, and the thread has "The Temples of Syrinx" in my head.

We've taken care of everything...

Thu, 04/05/2012 - 21:31 | 2321075 Benjamin Glutton
Benjamin Glutton's picture

oops...nothing short of a Dimon/Obama beer summit at 40,000 feet aboard Air Force One could solve this PR nightmare.



Thu, 04/05/2012 - 21:31 | 2321076 sitenine
sitenine's picture

I think I'm going numb.

Can someone remind me again why there are no bankers in jail?

Thu, 04/05/2012 - 21:42 | 2321102 ss123
ss123's picture

Too Big to Jail

Thu, 04/05/2012 - 21:54 | 2321129 Marginal Call
Marginal Call's picture

We privatized the prisons.  The bankers now employ the jailors. 

Thu, 04/05/2012 - 21:55 | 2321130 DollarMenu
DollarMenu's picture

The bankers write the laws,

the bankers own the prosecutors,

the bankers place the judges.

Did I miss anything?

Thu, 04/05/2012 - 22:01 | 2321141 logicalman
logicalman's picture

Because banksters make the rules

Haven't you figured it out yet?!

Thu, 04/05/2012 - 21:36 | 2321085 neevarp
neevarp's picture

Who else hates the senseless comments followed with the "bitchez" terminology over here?

Thu, 04/05/2012 - 21:59 | 2321135 DollarMenu
DollarMenu's picture

It is unique to ZH, almost since day 1.

Get used to it.

It will not go away.


Fri, 04/06/2012 - 01:16 | 2321352 Zgangsta
Zgangsta's picture


Thu, 04/05/2012 - 22:04 | 2321148 sof_hannibal
sof_hannibal's picture

End game snitchez.

Thu, 04/05/2012 - 22:58 | 2321218 zanez
zanez's picture

It's the ZH signature comment. Is nearly always funny to someone.

Thu, 04/05/2012 - 23:18 | 2321245 Dingleberry
Dingleberry's picture

Not me....bitchez.

Fri, 04/06/2012 - 02:12 | 2321397 putaipan
putaipan's picture

long senseless comments female doggies !!!!

(someone projected a 1000 plus comments on the previous blythemaster post....and then the HEADLINE ..... curious lack of interest. thnx tylers-but unless nancypelosi gets caught with her panties stuck in her mouth-)

Fri, 04/06/2012 - 11:40 | 2322253 NotApplicable
NotApplicable's picture

Go whine elsewhere.

BTW, do you always make a habit of insulting your hosts?

Thu, 04/05/2012 - 21:40 | 2321096 non_anon
non_anon's picture

the elusive "Higgs Boson" has been discovered at JPM.

Thu, 04/05/2012 - 21:42 | 2321101 ss123
ss123's picture

Joe Public doesn't care as long as his steady stream of free S.N.A.P. pea meals keep coming.

Thu, 04/05/2012 - 21:49 | 2321114 centerline
centerline's picture

Correct.  But, little does Joe Public realize is that a-holes like JPM are gambling with his pea meal credits.  In fact, they already blew his pea meal credits long ago and are just kiting checks to cover the losses now.

Fri, 04/06/2012 - 11:43 | 2322263 NotApplicable
NotApplicable's picture

I'm going to start up a sign company to produce all of those SNAP/EBT Accepted Here! signs I see going up everywhere.

It's the only true growth industry I see at the moment.

Thu, 04/05/2012 - 21:48 | 2321110 peekcrackers
peekcrackers's picture

"Yet while JPMorgan may manipulate the gold, silver, or any other market, for its or the Fed's agenda, there is a silver lining: it allows everyone to buy physical assets at artificially deflated paper spot prices."


 On Sale hookers .. Get it while you can .. dont forget your ammo and scotch

Thu, 04/05/2012 - 21:50 | 2321115 whoopsing
whoopsing's picture

You Break It You Bye It

Thu, 04/05/2012 - 21:50 | 2321116 tony bonn
tony bonn's picture

these revelations about satan's asshole....i mean jpm are not shocking but fascinating nonetheless.....that rules are for the little people certainly provides mammon with an escape clause...

"....The persistence of price dislocations has frustrated some hedge funds that were betting on the gap .." [emphasis added]

and thus we find the problem - the operative word being is casino economics and tax payers have to bail out these is long past time for a tax payer revolt....these creeps will crash and burn - let them do so...


Thu, 04/05/2012 - 21:53 | 2321120 WhiteNight123129
WhiteNight123129's picture

Aside from monetary value, what would be the entertainment value of throwing half a physical metric ton of Silver on Iksil's desk? He can throw back 0101 electronic Silver back on ours, are we scared Bitchez?...... That's what I thought, I guess we are not.

Thu, 04/05/2012 - 21:54 | 2321123 ebworthen
ebworthen's picture

After Corzine, why would they fear breaking any rule or law?

The gumshoe rubber-stamp detectives of law enforcement are busy on Snipe hunts and chasing down Leprechaun sightings so what does the J.P. Morgue have to fear?

Thu, 04/05/2012 - 21:59 | 2321136 brettd
brettd's picture



Fri, 04/06/2012 - 02:18 | 2321401 putaipan
putaipan's picture


(brought to you by the committee to elect the "other mormon")

Thu, 04/05/2012 - 22:00 | 2321138 FranSix
FranSix's picture

OT:  Gold miners willingly drop their drawers to get spanked by the banks:

Thu, 04/05/2012 - 22:02 | 2321143 ZeroPower
ZeroPower's picture

Oh shit, he's balls deep in MAIN is he? Maybe in XOver?

Fact of the matter is, these (index) CDS markets are so fucking liquid it would indeed literally take "hundreds of billions" to move that shit in a way that would make others squirm. And theres no way one guy can have that much on, i dont care if he's a jr trader or the desk MD for hybrids trading... unless of course he's going rogue a la UBS style (delta one anyone?).

Granted, the JPM faucets do drip quite extensively..

Thu, 04/05/2012 - 22:04 | 2321147 Atomizer
Fri, 04/06/2012 - 00:12 | 2321310 JW n FL
JW n FL's picture




Food for thought ZH family…

MF Global's Two Trustees Showing Signs of Disagreement

Great! Grab!! Thanks!!!

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