JPMorgan's CIO losses can't be described "in any way as a hedge," says hedge fund giant Michael Platt, whose BlueCrest capital was on the other side of the trade. "It's a trading loss. They deliberately put the positions on." "They're not out of those positions," he says and will face further losses if Europe continues to deteriorate. [View news story]
Hey, guess what? It's rumored that the senator who Demands An Investigation of JP Morgan has - as his biggest campaign contributor - (drum roll, please) you guessed it, JP Morgan !
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
Paying down deficits and/or debt in good years is straight out of the Keynes playbook. Is there any hard evidence that this actually happens?
We have the most heavily medicated population in history in regard to anti-depressants and psychoactive drugs. Polls say one in seven believes the world will end soon. Where's the discipline to guide long term economic health?
The Banks And Derivatives: Too Big To Fail Or Too Exposed To Be Saved? [View article]
Has anyone taken a step back and looked at the big picture? OK, I understand the claim that these derivatives may not represent a mind numbing net claim - fair enough..... but how can we have a collective market that is many times greater than the whole economy? At what point does this become a casino that tends to exclude rational management of change and risk BEYOND merely 'placing a bet'?
And as for the notion that derivatives are not a NET threat, who knows this? Who can assert such a thing with reasonable authority?
JPMorgan's (JPM) losses from its disastrous trades could reach $5B or more, the WSJ reports, as the bank struggles to unwind its positions. Major problems include increasing worries about Greece and the the EU economy. Meanwhile, the CFTC becomes the latest government agency to open a probe into the debacle, the NYT reports. [View news story]
2 billion.......3.... 4...... 5 do I hear 6? Can I get a 6?
Jamie Dimon "couldn't breathe" when he saw the actual positions behind the $2B (and growing) CIO loss, according to an inside-baseball account. Dimon's risk-management instincts appear over time to have been dulled by the profits the unit was producing, leaving him unaware the CIO had morphed from a hedging outfit to one making big directional plays. [View news story]
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
So, the government bails everyone out, saves the economy and then manifests a self discipline across a decade to reduce debt - "after the economy recovers" - amidst worsening demographics.
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
I don't understand his concept at all: consumers deleverage while the US government vastly expands debt. The two things are not separated, they are deeply linked.
We had a worldwide crash in some measure because "experts" failed to notice strong correlations between markets and asset classes. Has anything been learned?
Dimon on CIO activities: JPM has suffered a $2B loss in the synthetic credit portfolio. "The strategy was flawed ... There were many errors, sloppiness, and bad judgment ... risk managers are fully engaged in helping to monitor the current portfolio." He goes on to say volatility could remain high over coming quarters and could cost the bank another $1B. [View news story]
Archman is correct. They are invunerable and above any law enforcement. Ask Andrew McGuire.
Goodbye TBTF? The FDIC's Martin Gruenberg is expected to outline today that the next time a major financial firm is brought to its knees, the FDIC will seize the parent company and unwind it while allowing its global subsidiaries to keep operating. Equity stakeholders will be wiped out and bondholders will face losses as their holdings are swapped for equity in a new entity. [View news story]
Plenty of tough laws, no practical enforcement - except perhaps for the 'little fish' who can't afford lobbyists or fraudulent document mills.
Goodbye TBTF? The FDIC's Martin Gruenberg is expected to outline today that the next time a major financial firm is brought to its knees, the FDIC will seize the parent company and unwind it while allowing its global subsidiaries to keep operating. Equity stakeholders will be wiped out and bondholders will face losses as their holdings are swapped for equity in a new entity. [View news story]
Really? Will they dare to wipe out Warren Buffett and Saudi billionaires? And ignore whoever is elected President with Big Bank money (either candidate)?
This is an excellent article and suggests a measure of hope for the future. That said, I worry about the TBTF banks hold on the economy and their serious scofflaw behavior, which I believe goes beyond massive document fraud all the way to murder, as needed (Andrew McGuire attempt). Their sheer size dictates this unpublicized ability, over and above any law enforcement. How do they get broken up?
Argentina's President Just Shot Her Country In The Foot [View article]
People keep claiming that they will get their comeuppance but when does it happen?
They lie, cheat and steal - and default every 20 years or so (or more often) and investors kep going back to them with cash, as if the past never happened. At some point, fools deserve to be parted from their money.
The Volcker rule - scheduled for enactment in July - may be impossible to implement, says Richmond Fed President Lacker. In any case, the rule likely takes aim at the wrong thing as bank trading books were "kind of tangential" to the financial crisis. Instead, he says, the goal should be "no taxpayer assistance for failing institutions." [View news story]
Why not make bank failure a felony? Grant an exception for a declared national emergency and inform directors that they are agreeing to a special position that carries a special responsibility. I understand that, at least at one time, Switzerland took this viewpoint.
On CNBC, Jon Corzine's spokesperson denies the story attached to the earlier memo about customer funds covering an overdraft at JPMorgan - saying Corzine wasn't told client funds were the ones being used to cover the shortage. [View news story]
Now let everyone see the scofflaw nature of banks and the financial elite!
JPMorgan's CIO losses can't be described "in any way as a hedge," says hedge fund giant Michael Platt, whose BlueCrest capital was on the other side of the trade. "It's a trading loss. They deliberately put the positions on." "They're not out of those positions," he says and will face further losses if Europe continues to deteriorate. [View news story]
The Best Government Money Can Buy?
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
We have the most heavily medicated population in history in regard to anti-depressants and psychoactive drugs. Polls say one in seven believes the world will end soon. Where's the discipline to guide long term economic health?
The Banks And Derivatives: Too Big To Fail Or Too Exposed To Be Saved? [View article]
OK, I understand the claim that these derivatives may not represent a mind numbing net claim - fair enough..... but how can we have a collective market that is many times greater than the whole economy? At what point does this become a casino that tends to exclude rational management of change and risk BEYOND merely 'placing a bet'?
And as for the notion that derivatives are not a NET threat, who knows this? Who can assert such a thing with reasonable authority?
JPMorgan's (JPM) losses from its disastrous trades could reach $5B or more, the WSJ reports, as the bank struggles to unwind its positions. Major problems include increasing worries about Greece and the the EU economy. Meanwhile, the CFTC becomes the latest government agency to open a probe into the debacle, the NYT reports. [View news story]
Jamie Dimon "couldn't breathe" when he saw the actual positions behind the $2B (and growing) CIO loss, according to an inside-baseball account. Dimon's risk-management instincts appear over time to have been dulled by the profits the unit was producing, leaving him unaware the CIO had morphed from a hedging outfit to one making big directional plays. [View news story]
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
Does anyone really believe this?
Ray Dalio explains the concept of a beautiful deleveraging and why the U.S. is in one, but the EU, not so much. He expects the ECB will ultimately print money and produce another big rally, "but this is a tougher time to be very confident about that scenario." An "uncivilized" man, Dalio remains a fan of gold, recommending most have 10% of their assets in the metal. [View news story]
We had a worldwide crash in some measure because "experts" failed to notice strong correlations between markets and asset classes. Has anything been learned?
Dimon on CIO activities: JPM has suffered a $2B loss in the synthetic credit portfolio. "The strategy was flawed ... There were many errors, sloppiness, and bad judgment ... risk managers are fully engaged in helping to monitor the current portfolio." He goes on to say volatility could remain high over coming quarters and could cost the bank another $1B. [View news story]
Goodbye TBTF? The FDIC's Martin Gruenberg is expected to outline today that the next time a major financial firm is brought to its knees, the FDIC will seize the parent company and unwind it while allowing its global subsidiaries to keep operating. Equity stakeholders will be wiped out and bondholders will face losses as their holdings are swapped for equity in a new entity. [View news story]
Goodbye TBTF? The FDIC's Martin Gruenberg is expected to outline today that the next time a major financial firm is brought to its knees, the FDIC will seize the parent company and unwind it while allowing its global subsidiaries to keep operating. Equity stakeholders will be wiped out and bondholders will face losses as their holdings are swapped for equity in a new entity. [View news story]
The Future Of Global Finance [View article]
That said, I worry about the TBTF banks hold on the economy and their serious scofflaw behavior, which I believe goes beyond massive document fraud all the way to murder, as needed (Andrew McGuire attempt). Their sheer size dictates this unpublicized ability, over and above any law enforcement. How do they get broken up?
How Long Before Spain Does Something Crazy? [View article]
Argentina's President Just Shot Her Country In The Foot [View article]
They lie, cheat and steal - and default every 20 years or so (or more often) and investors kep going back to them with cash, as if the past never happened. At some point, fools deserve to be parted from their money.
The Volcker rule - scheduled for enactment in July - may be impossible to implement, says Richmond Fed President Lacker. In any case, the rule likely takes aim at the wrong thing as bank trading books were "kind of tangential" to the financial crisis. Instead, he says, the goal should be "no taxpayer assistance for failing institutions." [View news story]
On CNBC, Jon Corzine's spokesperson denies the story attached to the earlier memo about customer funds covering an overdraft at JPMorgan - saying Corzine wasn't told client funds were the ones being used to cover the shortage. [View news story]