“The greatest shortcoming of the human race is our inability to understand the exponential function.” Albert Bartlett
Fuck all your cries of notional vs nominal. JPM’s mini debacle is the tip of the iceberg of potential losses to be had.
JPM has informed us that the losses may grow. We still do not know what the synthetics are tied too and whether this event could trigger other events for other banks.
If the Fed and Capitol Hill were so concerned of regulation and transparency to build confidence in the market place, then they would not have let the lobbyists win the issue of regulating the derivatives market….Full article
Even Jamie Dimon himself met with the Fed to delay the voting process on derivatives…. Full article
Here is the history of how we got here: Full article
What is important here are two things. This opaque market is a place to rape investors for commissions while playing three card monte with risk disclosure.
What started as a hedge has now become a swirling mass of toxic shit.
What scares me the most is the fact that currency swaps are used to lower interest payments on sovereign debt. We saw what happened in Jefferson County Alabama…and we know what is taking place in Europe.
Oh and by the way it was $JPM who fucked Jefferson County… Full article
For the love of sanity will someone please stand up and throw these greedy fucking criminals in jail before the the entire system blows up to the point where the credit freeze after LEH was just a five minute pick your nose event.
You better pray my prediction is way off the mark….Prediction
[youtube://http://www.youtube.com/watch?v=-F62B6BX0xs 450 300]
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