J.P. Morgan Flags $2 Billion Trading Loss

reply to post by tracehd1


To my knowledge, JP Morgan's clients accounts are insured by the US government. So, if they go significantly under, expect more bailouts.

I don't understand why us American's put up with this and don't have the pitch forks after these criminals.

If I and many others refuse to do business with some local business's, they will go bankrupt.
That is capitalism and the markets at work.

So, where is the scenario that JPM, Citi Bank, Goldman Sachs Mega Corporations like Exon, GE etc can fail when my tax dollars are propping them up?

People need to understand the enemy and financial terrorists of this country are not your fellow man, but the fascist Banks and Mega Corporations that have hijacked our country for their own gain.

reply to post by jacobe001


It's simple really. They have used their increasingly massive financial power over the last couple decades to essentially 'buy' the government and all the politicians on the way up. That power enables them to significantly affect legislation that benefits them, revise tax code to their advantage and get whatever they want whenever they want it. Something goes wrong the government just looks the other way so as not to bite the hand that feeds them. Why has Wall Street skated after they tanked the economy in '08? Why has MF Global skated? The big boys own the game lock, stock and barrel. And the icing on the cake was when they got the Supreme Court to define them as 'people'. That was the last piece in the puzzle.

They've provided Billions to many shell companies the last few years who aren't making any money and doing bad things with their money.

After they've emptied their wheel barrel it will be refilled with free paper. Always happens.

so 700 trillion with a T , where did this money go, who's pocket, who were the winners of that chicken dinner?

If they give me a line of 'synthetic credit' can I repay them with synthetic money?

Originally posted by rebellender
so 700 trillion with a T , where did this money go, who's pocket, who were the winners of that chicken dinner?

This money was created in the banking systems, it doesn't exists, the world GDP is $63.12 Trillion US dollars at current prices - 2010 (Source: World Bank). So if this were to go belly up, no way the banks or governments can fix it. The example provided in the video I posted of a car insurance applies here: suppose that I have a car and I can't drive very well, you and your friends decide to create insurances on my car "Oh, Patifier will crash his car, no doubt about it, let's bet on that!", then some day I drink a couple 6-pacs, a bottle of whiskey and smoke some pot and smash my car. Now the insurance company has to pay you and your friends $50,000 each for something worth only $30,000, lets say. This is how derivatives work. The insurer gains the monthly payments from you and your friends, betting that I'll never crash. But guess what, they got insurances too, If I crash another insurer like AIG will pay them. It's always like a ponzi scheme, the guys at the bottom of the pyramid are fated to fail. But the derivatives bubble is so huge that everybody will fail.

reply to post by Patifier


so bottom line is It was made to exist as long as people borrow money....which isnt happening right now!!

ETA: so China is the insurer/lender now faced with a potential loss, China is self insured and as such has a possible foreclosure decision to make.

Its only way at recovery will be this www.abovetopsecret.com...

to that I say No and I will back up the No....grass dont stop bullets but I would test the theory, catch my drift

reply to post by rebellender


No! You don't have to borrow money to make a bet in the financial market! There is a thing called leverage, a financial institution holds $10 from you, they are able to lend $1000+ nowadays based on this $10, before, under regulation, they were much more restricted, they had a cap to lower than $100 for the same $10.

Originally posted by Patifier
reply to post by rebellender

 

No! You don't have to borrow money to make a bet in the financial market! There is a thing called leverage, a financial institution holds $10 from you, they are able to lend $1000+ nowadays based on this $10, before, under regulation, they were much more restricted, they had a cap to lower than $100 for the same $10.

now I understand, its fake money it all spends the same and creates inflation for a purpose....


ok. all you guys need to go to jail.!!!!

obviously we are at the pinnacle of Greed

reply to post by rebellender

About the recovery thread, some countries establish free trading zones as means to promote growth to certain regions of a country. It creates jobs and infrastructure. Usually the free trading zones receive parts without taxation and are assembled there and shipped to other states of that country with some sort of taxation. The best way for a country is to engage in assembly is with some sort of technology transfer. As the US is still the most innovative country in the world I see no need to technology transfer agreements. So, if it's creating jobs and helping, I don't see any takeover.

Originally posted by rebellender
Now I understand, its fake money it all spends the same and creates inflation for a purpose...

Not quite so! This money is created in their systems, sometimes called "black boxes". If it doesn't goes into circulation it can't create inflation, only risk.

Originally posted by rebellender
ok. all you guys need to go to jail.!!!!

Agreed!

Now they are sayinhg that its really $4.2 billion, not $2 billion and that the impact may contaminate the entire financial sector.

Ooops! Well, what's two billion extra between friends?

reply to post by Leftist


Thats assuming they have managed to unwind all their position aswell which is highly unlikely, the index should of moved multiples higher if that was the case. Though people that are long the index might want to be VERY careful I dont think JPM would really announce this unless they were engaging in some sort of headfake aswell to try and get people in on the trade to crush them, people might find out they are the ones being suckered in for the crushing. Just a hunch.

It would seem as though a few "key executives" have been fired, while the CEO refuses to step down.