An interesting look into what may happen if Greece leave the Euro…
Comments »KRUGMAN: Here’s How The Whole Eurozone Could Unravel In Just A Matter Of Months
“Paul Krugman has a gloomy post this evening explaining how quickly the whole Euro could unravel….”
Comments »On Wall Streets Derivative Gambling: The Martingale Strategy Can Bankrupt You
Shakespeare had it so pegged when he showed the best in a character as well as his or her flaws. Well wall street certainly has the brightest minds to manage risk, but it is human nature that exposes flaws no matter how safe that quant models appears to be.
Comments »Elizabeth Warren Wants Heads to Roll; Asking for Jamie Dimon to Step Down
“Elizabeth Warren, a Massachusetts candidate for U.S. Senate, called for JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon to resign his position as a director at the Federal Reserve Bank of New York.
Dimon, who disclosed a $2 billion trading loss by his bank last week, shouldn’t stay on the board of the New York Fed because “he advises the Federal Reserve on the oversight of the financial industry,” she said in an e-mail release.”
Comments »This Is Clearly Going To Cost JPMorgan Much More Than $2 Billion
JPM is allegedly unable to close the trades that are causing the hemorrhaging. With sharks circling a “wounded whale oozing blood”, Mendoz wonders how much higher than $2 Billion will the final tally be?
Read the article here.
Comments »Dick Bove on JP Morgan Debacle (VIDEO)
[youtube:http://www.youtube.com/watch?v=4eRJVBWykqI&feature=g-all-u 603 500]
Comments »WSJ: Bank Order Led to Losing Trades: $JPM
One trader estimated more than a dozen hedge funds and banks profited by taking the other side of J.P. Morgan’s trades. Firms such as BlueMountain Capital Management LLC and BlueCrest Capital Management LP each scored gains of about $30 million, according to people familiar with the matter. The firms declined to comment.
Comments »BEACH BOYS SINGER: “Obama’s a Socialist A-Hole”
http://www.youtube.com/watch?v=AHtQ4-WBkis
Americans will be “f**ked” if Barack Obama gets re-elected … this according to Beach Boys singer Bruce Johnston.
Bruce was signing autographs for fans in New York yesterday when the conversation turned political.
“Obama’s an a**hole, “Johnston says … adding, “Unless you’re interested in never having any money and being socialized.”
CLICK HERE TO READ REST AT TMZ.COM
Comments »No Surprise: Facebook Oversubscribed
“Facebook’s record initial public offering is already oversubscribed, a source familiar with the share listing said, days after the world’s largest social network embarked on a cross-country roadshow to drum up investor enthusiasm.”
Comments »Wharton’s Siegel: Europe Will Have to Devalue Euro to Save It
“Crisis-ridden Europe will have to weaken the euro against the dollar in order to save the economy, says Wharton finance professor Jeremy Siegel.
The European Central Bank has flooded the economy with liquidity to keep financial systems afloat and stave off the debt crisis.
Measures have included making low-cost loans available to banks so they’ll lend to even stepping in directly and injecting banks with liquidity, a tool known as quantitative easing
Devaluing the euro would help even more, as it would make servicing debts easier and exports more competitive outside of the continent and fuel more growth in hard-hit countries like Greece, Siegel says.”
Comments »Why It Matters That JPMorgan Lost $2 Billion Trading In Six Weeks
“JPMorgan and Chase Company has carefully crafted its reputation as one of America’s best-run big banks during a period of intense scrutiny over the nation’s too-big-to-fail banks. The abrupt disclosure on Thursday afternoon that JPMorgan had experienced $2 billion of trading losses in six weeks related to synthetic credit securities is a huge blow to the company and the U.S. banking sector.”
Comments »U.S. Equity Preview
$JPM: Does One Bad Trade Make a Dangerous Pattern?
“The front page of almost every news and financial paper or website carried that story of JP Morgan’s (NYSE: JPM) $2 billion trading loss. As MarketWatch described it, “The losses stemmed from trades at the bank’s chief investment office, where a single trader — dubbed the ‘London Whale’ — was reported to have taken large positions for the bank in credit-default swaps.”
Comments »In Play and On the Wires
Global Pole Indicates Facebook Thought to be Overvalued
“Facebook Inc. (FB), seeking as much as $96 billion in its initial public offering next week, is overvalued at that price, according to a Bloomberg investor poll.
Underscoring concerns that growth may taper for the world’s biggest social network, 79 percent of respondents in the Bloomberg Global Poll of 1,253 investors, analysts and traders who are Bloomberg subscribers said Facebook doesn’t deserve a valuation so high.”
Comments »The Euro Zone is Expected to Return to Growth by 2013 Sans Italy and Spain
“The euro-region economy will return to growth in 2013, with only Spain among its 17 members remaining in recession, according to the European Commission.
Gross domestic product will rise 1 percent in 2013 after declining 0.3 percent in 2012, the Brussels-based commission said today. While Greece will have the deepest slump, with GDP declining 4.7 percent, its economy may stay unchanged in 2013. Italy and Portugal will return to growth next year, while Spain’s economy may shrink 1.8 percent this year and 0.3 percent in 2013.”
Comments »Megan Greene: Spain to Need ‘Huge Bailout’ (video)
[youtube:http://www.youtube.com/watch?v=bOws4-e8uNo&feature=g-all-u 603 500]
Comments »Wake The Fuck Up and Smell the Synthetic Derivatives Rant
“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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About That Head and Shoulders Pattern in the Russell 2000
JC Parets of All Star Charts presents technical analysis of the Russell 2000, where he covers the massive head and shoulders pattern that has developed in 2012.
Read his analysis here.
Comments »Are Gas Prices Headed Lower Still?
NEW YORK (CNNMoney) — Just in time for the start of the summer driving season, U.S. drivers are enjoying some relief at the pump, much sooner than past years.
Early May is typically about the time of year that gas prices hit their peak, as refineries switch over to start making the summer blend required after Memorial Day. In 2008, the record high price for gas of $4.114, didn’t come until July 17.
But this year the average national price for a gallon of unleaded has already been declining slowly but steadily for just over a month, shaving about 20 cents off a gallon of unleaded in that time. And with oil prices also falling, more declines at the pump are expected.
“You have seen an early peak in gasoline prices, and barring any headlines from Iran, that [decline in prices] should be the case throughout the summer,” said Mike Fitzpatrick, editor-in-chief of Kilduff Report’s Energy Overview.
Read more here:
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