JP Morgan Chase Smith Barney whatsis

[Transmogrified Tiger]

Does the ridiculous sensationalistic politicking have to go in every thread?

[pioneer98]

JP Morgan loss puts spotlight on possible ratings downgrade for global banks

NY FBI Opens Inquiry into JP Morgan Chase losses

[pioneer98]

Does the ridiculous sensationalistic politicking have to go in every thread?

Well, this is the "rants" section.

[pioneer98]

But none of the "dominoes" from 2008 actually fell, except Lehman Brothers....

Are you kidding me? Hundreds and hundreds of banks failed besides Lehman Brothers.

When Meridian Bank in Eldred, IL failed in 2008, it didn't nearly spark a global meltdown. I wouldn't call them a "domino" in the global banking system. They were more part of the "collateral damage" I referred to earlier.

I'm not saying this latest "issue" with JPM is on the scale of the mortgage meltdown. I don't think it is. But the fact is right now we really don't know how big this current crisis is. It could be sorta big. Or not. Who knows.

I'll concede that this latest one is different from the 2008 mortgage meltdown in a number of ways....but it is also similar in some ways, too. Both crisis dealt with "synthetic" investments. These are basically invented markets. You aren't selling a real investment, like a mortgage. You are selling a bet on a real investment...and bets on bets of investments. Selling bets on other investments can be a lot more profitable and easier than making actual investments to sell. Just more risky, and not really a net "gain" for the economy. When someone loses a bet, money is transferred between two parties, but no net wealth is created. Just transferred.

I get that derivatives have a real place in our economy, to help hedge on input costs of various business. But they need to be regulated and above board. With hedges on commodities, like corn or oil, the entire world knows what the futures of those things cost. But they don't publish figures on "mortgage futures" or whatever the heck bond futures or whatever these guys were selling.

[Freed Roger]

[expletive]

[wart57]

Does the ridiculous sensationalistic politicking have to go in every thread?

Yeah, I'm guilty. Worth noting, I did it in response to Cronos rants on lack of rants. Sorry -no more tangents and harsh realities for you kids...

You mean after this one, right?

[pioneer98]

Shareholders sue JPMorgan over trading loss

Anyone who gave their money to these snake oil salesmen either:
a) Let greed cloud their judgment and got what they deserved or
b) Got taught a good life lesson.

Good luck getting your money back.

[wart57]

[expletive]

Well played....

[Hungary Jack]

Does the ridiculous sensationalistic politicking have to go in every thread?

What are you talking about?

[Freed Roger]

Does the ridiculous sensationalistic politicking have to go in every thread?

What are you talking about?

Oh, I deleted it. Sorry man. Cronos was bellyachin about not enough rants - so I provided him one.

Does this topic have to do with politics? IMO it does -the question is where does the economic fallout land.

After a brief hiatus from the 2008 meltdown, Wall Street it appears, resumed the same modus operandi. The broker bonuses went down, but went soon back to normal -so it seems that they came out alright from back then. But we don't see that same recovery elsewhere.

In other words - the 2008 fallout was ridiculously inequitable. But with the deck stacked as it is how can it ever be?
Although JP morgan doesn't appear to be heading for a public bailout, I'm still a bit paranoid that the fallout from this won't be contained to the investors and JP Morganistas.

People may not like these cliches/platitudes/generalizations within opinions. Yes, I can cut and paste some novella or some business stats (and I have in the past), but we can all look that [expletive] up ourselves.

And Jamie Dimon sure has sounded a lot like a politician recently. Why else does a guy go on Meet the Press? I'm ready for him to host SNL.

carry on.