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JPMorgan's (JPM) losses from its disastrous trades could reach $5B or more, the WSJ reports, as...
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Sunday, May 20, 2012, 5:57 AM ETJPMorgan's (JPM) losses from its disastrous trades could reach $5B or more, the WSJ reports, as the bank struggles to unwind its positions. Major problems include increasing worries about Greece and the the EU economy. Meanwhile, the CFTC becomes the latest government agency to open a probe into the debacle, the NYT reports.
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The wonderful thing about this mess is that, althought JPM told of the loss ($2B at the time), they never admitted that they were still holding the derivatives and having trouble selling them! Meanwhile the loss mounts as JPM still can't peddle them off.
Where is Jon Corzine and why isn't the media looking as closely at MF Global as they are at JPM? Mr. Corzine and his band of thieves took investor money, to the tune of $2B, and made it vanish. This wasn't a poor bet on derivatives, this was theft.
Anyone in Congree listening? Does anyone in Congress care?
Where is Jon Corzine?
Have a great Sunday Everyone.
We already have a message from credit markets: $JNK, $HYG and $EMB are collapsing versus nominal Treasuries ($IEF, $TLT), in such a precipitous way that we can say credit event is underway. If no rapid and massive spread narrowing, well then... Brace for impact.
Are you talking about something on a par with 2008 and Lehmans or something, dare I say it, worse?
Thank you.
If the traders unify an attack the other side we might see another Lehman and add in Greece...Woah !
As you say the US 10 yr at record lows rates and the Bund too......It is screaming .. not just telling ! DL
For proof see charts of $JNK/$IEF, $PCY/$IEF, $EMB/$TLT. Junk Debt is collapsing, as well as Sovereign Debt and Emerging Markets Debt, and all that relative to US Nominal Treasuries ($IEF, $TLT), so Credit spreads are blowing out like mad in the last 7 days.
We have maybe 48 hours that these spreads start to narrow rapidly and massively. If not, Bond market is sending a Crash message.
Now, I will say it again: it is possible that we avoid it, but ONLY if credit spreads start to narrow, but not slowly, they must narrow very fast. Junk debt has higher capital structure than stocks and its fall filters to stocks with lag.
the slope is about the same...
does it make a difference if i look at the yields rather than the etf prices, since one is the reciprocal of the other ?
Looking at yields instead of prices won't help, but for sure look at UST 10-year and UST 30-year Yields, 1.80 and 3.00 are line in the sands respectively.
Once more: credit event can still be avoided, but those spreads have to narrow fast and substantially.
What is causing the fear? Not that anyone couldn't take their pick right now. Europe continues along its downward slope, seemingly about to see its first economic member drop out and turning attention toward the next weakest. The U.S. debt hasn't gotten any smaller. Actually the one I think might be deceptively under the radar at the moment is Japan. I'm not sure how they will continue to sell bonds at low yields, and they can't really afford to sell higher yield bonds. And top all that off with potential military conflict in the Straits of Hormuz, and you've got a few sleepless nights for everyone watching.
I never walk into a place I don't know how to walk out of.
or
Whenever there is any doubt, there is no doubt.
Personally, I don't recall any losses going 2,5,6. You guys are optimists.
Also, have no illusion: if the Bond market is right (usually is), then Stock market will crash from oversold levels (we are now oversold). Just observe.
http://bit.ly/JqgD32
The fall is so precipitous, that the message is clear: Credit event underway. Maybe we can avoid it at the last moment, but ONLY if Credit spreads start to narrow FAST.