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Tuesday, May 15. 2012

How JP Morgan lost a bet

They were hedging their hedges. Who wouldn't? It's a little complex, but understandable: Irony 101 Or How The Fed Blew Up JPMorgan's 'Hedge' In 22 Tweets.


Businesses lose money every day by making calculated risks. I don't know what the big deal is. All business operates on risks. You win some, lose some. You try to win more than you lose.


 

Posted by The News Junkie in Hot News & Misc. Short Subjects at 18:21 | Comments (16) | Trackbacks (0)

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Now the FBI has been sent in to investigate the loss. What I want to know is, when will the Feds arrest Jon Corzine for grand theft and embezzlement? Never as long as Eric Holder and Barack Obama are running things.
#1 Stan25 on 2012-05-15 19:38 (Reply)
yea i see clips of potus discussing jp morgans current snafu on tv today but nothing of mf global's imploded hedge fund, where's the press?
==
haven't read the 21 tweets yet -- any synopsis out there?

[note . . . i like Banks :), i like paper money :), everybody wants money, the more the merrier, as long a one is free to trade in the precious metals and whatever other evolved coordination of trade take place . note* that doesn't cover all the bases but i felt compelled to include it in the commentary. money is our friend but it ain't everything, although it can sure look like it sometimes] [the messenger more than the message, is what money is. ever read a pithy synopsis of the 'evolution of money'? Carl Menger's chapter is a good start] [evolved languages of trade]
#2 observor on 2012-05-15 20:08 (Reply)
just a short chapter. forget the intro and 1st chapters, that's like calculus, and all though it is a hazy approximation of things, in ain't really what's happening when you figure in all the components -- cf Berkeley's screed (but bishop sir, it helps us build bridges!)
#2.1 observor on 2012-05-15 20:13 (Reply)
hayek helps too, but please disregard if you are not open to enlightenment. there's something 2b said for proto, always, yet we live in a different woirld than just 100 years ago -- sure there's plenty of deductive still 2b mined, yet we have inductive too, at our disposal
~francis bacon
#3 observor on 2012-05-15 20:35 (Reply)
come on out of the flux there are some of you who can talk
#4 observor on 2012-05-15 20:42 (Reply)
speak! [ha, ha, ha]
#4.1 observor on 2012-05-15 20:55 (Reply)
and you were taught, that them big bankers were the devil until big government? now how did that happen? jp morgan is a hero; stupid f's
#5 observor on 2012-05-15 21:29 (Reply)
that rosy, bulbous nose . . . ever had a drink?
#6 observor on 2012-05-15 21:32 (Reply)
I think the PTB are relying on MIT's quants and their computer models too much.
#7 jma on 2012-05-15 21:44 (Reply)
most definitely, there are maargins there, usually stated in the preface, the presumptions -- the reference to reality, to funnymental prerequisites
#7.1 observor on 2012-05-15 22:19 (Reply)
Drudge has up:
George Soros Hosts Secret Donor Summit in Miami

http://freebeacon.com/the-soros-summit/

===

In attendance, the heavy hitters of the "Managed Funds Association" which is the lobbying arm of the collection of bear-raiding hedge-fund short-sellers whom the Financial Times has calculated are costing global investors about 1.9% of global GDP annually.

http://www.ft.com/cms/s/0/3adcb3e6-5c9c-11e0-ab7c-00144feab49a.html#axzz1v0UtWyNG

===

Also in attendance, the political organizations dedicated to Obama --and his hidden agenda.
#8 buddy larsen on 2012-05-16 01:36 (Reply)
JP Morgan made a profit of $19 billion in 2011. Its recent investment loss was $2 billion.
Sounds like the bank is hedging their bets well.
#9 PacRim Jim (Link) on 2012-05-16 01:56 (Reply)
Politics is leeching into commerce so steadily it almost seems to be a conditioning process.

FBI just announced it will investigate the case. What case? Did they break any laws? Probably --there's just so many of 'em, the only way to stay cleasr of scandal is to suck up to the admin agency --IOW, do NOT criticize Dodd Frank from the position of CEO of a TooBigToFail, or at least, do NOT be the only one of your peers so doing.
#9.1 buddy larsen on 2012-05-16 08:52 (Reply)
Every --every --half-decent honest-enough financial person who is asked the question, answers "YES, put Glass-Steagall back in!"

As far as I can tell, the impediment is, the people who killed it --starting with president Clinton, can't face the implications.
#10 buddy larsen on 2012-05-16 10:08 (Reply)
You shouldn't have to "hedge a hedge." A properly executed hedge should lose money, because it only exists to offset losses in your underlying portfolio.
#11 DougT on 2012-05-16 11:06 (Reply)
It's right there in plain sight, in Miami at the moment, the Managed Funds Association --whose huge short against USA still as five years ago forms the atmosphere in the control room of the economy --holds ''secret'' meetings --in the clear, with the left wing of the Democratic Party!

THAT is the main message!

--which they as usual adroitly mask (with the fourth estate, remember, of the four estates which govern, the only 'independent' and so able to 'report' on the other three --abjectedly managing itself 'against interest' & per instruction) via describing the meetings-within-THE-meeting as 'secret'.

Bold wizards, mortal threats.
#12 buddy larsen on 2012-05-16 19:16 (Reply)

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