Sunday, May 20, 2012

Money is the mother's milk of all Zioconned Western politics and despicable Wars....


JPMC is only the very tip of the Iceberg....


"Money is t
he mother's milk of all Zioconned Western politics and despicable Wars...."

The shocking admission on May 11 by JP Morgan Chase CEO Jamie Dimon that the bank had suffered a $2 billion loss on a bad derivatives bet at their London office has served as a painful reminder that nothing has really been done, since the financial meltdown of 2008, to fundamentally change the gambling mania with "other people's money" on Wall Street. In just one week since the original Dimon admission, the price tag on the London derivatives blowout by JPMC has more than doubled. As of today, the bank is acknowledging $4 billion in losses, and the figure is expected to reach $20 to 50 billion by the time the complex highly leveraged bets are unraveled....
The JPMC revelations are particularly embarrassing to Zioconned President Obama, who has publicly praised Dimon as one of the most competent bankers on Wall Street, and who had him at the top of his list of candidates to replace Tim Geithner as his Treasury Secretary, should he win reelection.
Far more important, the JPMC admissions have sent long-overdue shockwaves through Zioconned Capitol Hill and through leading political circles around the country, provoking a revived demand for a simple and obvious solution: Forget the 2,000 pages of gibberish in the Dodd-Frank bill, and forget the Volcker Rules which have not yet been written, and have already been repudiated by their namesake, former Federal Reserve Chairman Paul Volcker. The simple solution is to repeal the 1999 Gramm-Leach-Bliley bill and reinstate the original 1933 FDR era Glass Steagall Bill, which created an absolute fire wall of separation between commercial banking and all the other speculative activities. From 1933 through 2000, the US banking system was largely crisis-free, regardless of the ups and downs of the US and world economy. Bankers, especially Wall Street bankers, knew that they could not legally gamble with depositors money.

A bill to do precisely this is already introduced into the House of Representatives. HR 1489, introduced last year by Rep. Marcy Kaptur (D-Oh.), with bipartisan support, already has more than 60 co-sponsors, and a surge of additional support has been generated by the JPMC debacle. Suddenly, the obvious is obvious: The Wall Street mess surrounding the collapse of Lehman Brothers and AIG/"CIA's shadow"...., the trillions of dollars in taxpayers bailout of Wall Street, has done nothing to improve the utterly corrupted situation.... The financial fiasco is not a thing of the past. It is now and the near future unless a more serious solution is accomplished. Both Zioconned Houses of Congress are headed back to their districts for the Memorial Day holidays, to reconvene at the end of the month. By then, the JP Morgan crisis will have likely mushroomed, and no one can even forecast the date when the European banking and sovereign debt crisis will blow up--whether in Greece, Portugal, Spain, Ireland, France or Italy. The degree of Wall Street exposure to the European debt crisis is enormous but incalculable.....

Glass Steagall is essential, but I don't believe its reinstatement will be able to stave off what is coming shortly....

The problem is that no one knows how counterparty risk is distributed. Dimon said that the "net" exposure of JPM is $50 billion....

But of course that assumes the counterparties don't default - which is likely. Suggestions elsewhere are that JPM has bet very bullish and very big on Europe.

We are about to watch a rise in nationalism not seen since 1914. "Globalization" will not easily survive it .....

The banks will change the new Glass Steagall bill so it is ineffective. Same as they have done with the Zioconned Dodd-Frank Bill that really did not do much.

We will be paying for the next bank bailout. ....

JP Morgan needs to call in all its so called derivatives and take the hit now and if not the government needs to force them to do it. While it is quite difficult to do such it can be done as if this grows to the $50B they will be at the governments doorstep looking for our assistance amongst many others.

Glass Steagall should be instituted as it was written a number of years ago and our government needs to tell the trading houses they are on their own which hopefully reduces the risks we have seen in the past years.

Keeping these trades open is only allowing the vultures to pick JPM's bones....

Restore Glass Steagall and hard-separate all present banks into their separated-function components. And let die any separated component which could not survive the Hard Glass Steagall Re-imposition....

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