(click on graphic for larger view)
Joined Apr 1, 2010
8,861 Blog Posts
© Copyright 2007-2024 iBankCoin All rights reserved under penalty of bodily harm. DISCLAIMER: This is a personal web site, reflecting the opinions of its author(s). It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER iBankCoin, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. Privacy Policy
somehow, JPM’s example wouldn’t be quite so easily explained, or mutually beneficial to both parties.
It’s only complicated b/c they choose to make it that way.
Exactly.
The classic was GS’s use of – ‘only the rocket scientists in our back room could possibly understand what was in those instruments.’ – to obfuscate them betting against the very shit they were selling.
100% agree
did some hedging yesterday, it was easy after i got the mixture right, i had 40:1, but found it a little to much,so i adjusted to 32:1, its funny how 2stroke engines react, my hedges never looked better.
The hedgers,of course, utilize speculators for their continuing offer of liquidity. The speculator presumably knows his market (how is the rain going to affect the wheat crop?), or his capital will be bled away. Unfortunately for our society, the speculation dominates the hedging as a function of the credit bubble. Thus JP Morgan.
The quaint cartoon doesn’t mention what happens when a flood wipes out the farmer’s crop and he can’t deliver the promised wheat.
Ooops.