By Simon Johnson In an interview Thursday on PBS NewsHour, Jeffrey Brown and Treasury Secretary Tim Geithner had the following exchange: “JEFFREY BROWN: Do you think Jamie Dimon should be off the board [of the New York Federal Reserve Board]? TIMOTHY … Continue reading →
By Simon Johnson JPMorgan Chase is too big to fail. As the largest bank-holding company in the United States, with assets approaching $2.5 trillion as reported under standard American accounting principles, it is inconceivable that JPMorgan Chase would be allowed … Continue reading →
Reich: Wall Street’s immorality crux of crisis
Friday, May 18, 2012
Some want the 2012 election to be about regulating America’s bedrooms. But it really ought to be about regulating the nation’s boardrooms.
The bedroom regulators are…
Chancellor’s Professor of Public Policy, University of California at Berkeley; Author, ‘Beyond Outrage’
The Commencement Address That Won’t Be Given
Members of the Class of 2012,
As a former secretary of labor and current professor, I…
This report is an excerpt from the permanent Employment Chart page. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds, just follow…
The Financial Times reported that more than a dozen senior traders and credit experts know that JPMorgan is in a lot more trouble than just suffering $2.3 billion – and counting – in losses.
Turns out the unit at JPMorgan that’s responsible for the loss has been the biggest buyer of European mortgage-backed bonds and other complex debt securities in all markets for three years.
Now JPMorgan has built up positions totaling $100 billion in the same risky financial products that triggered the financial crisis in 2008.
But anyone who followed Money Morning‘s Shah Gilani as he covered the topic knew this was a likely hidden truth.
You see, Gilani told us last Sunday, just days after news of the losses broke, that there was more to these trades than one hedge-gone-wrong.
“The idiots at the bank wanted to hedge against European credit exposure that they had,” Gilani wrote last to his Wall Street Insights and Indictments readers. “They are idiots because the money that’s shepherded by the Chief Investment Office (some $379 billion, yeah, that number is right) is money that the bank has and hasn’t lent out, or technically is “available” to play with. And instead of parking it in U.S. government bonds (Citi has $293 billion of the same float and has 87% of it parked in “governments”), they parked a lot of it in Europe’s crappy credit markets.”
There’s going to be a lot of very heavy betting over the next few days, weeks, and months on what’s going up, what’s going down, and what’s going around:
- How far will Facebook IPO price go?
- How far DOWN from here will JPMorgan go, with the FBI and DOJ now sniffing around?
- How far AROUND the globe will the fallout be if Greece loses its game of chicken?
If you don’t have the stomach for what’s going to feel like an out-of-control rollercoaster ride, sideline yourself.
If, on the other hand, you like a lot of action, welcome to Mayhem – the preamble month to what will likely be the Summer of Some Discontent.
That is, unless you like rapid-fire trading.
Which, by the way, is not just fun, but can be very, very profitable. I’m in, and so are the subscribers to my Capital Wave Forecast. We’re gearing up for some heavy betting in the weeks and months ahead.
So, what’s front and center today? You know. The big three headlines: Facebook, JPMorgan Chase, and Greece. Are you sick of hearing about them? I’m not. I like trading the headlines.
Here’s my “heads-up” on the big three headlines.
While the mainstream media was reporting that jobless claims were steady last week, the real picture was more nuanced. The media reports only the seasonally smoothed number, which can obscure what’s really going on and is often late in recognizing trend changes because of the inherent smoothing. I liken it to Impressionist Art. It’s an…
(Reuters) – When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to…