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"We're not going to cut them off," says Jamie Dimon (at the CFR), regarding the question of...

"We're not going to cut them off," says Jamie Dimon (at the CFR), regarding the question of whether JPMorgan (JPM) is pulling out of Spain and Italy. He says, the bank has $15B of exposure to the two countries, and stands to lose $6B if things go badly.
Comments (5)
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    Jamie is sometimes referred to as the smartest guy on Wall Street. They know these austerity deals don't work and they keep doing them anyway. I'm no rocket scientist but I know you can't bleed blood out of a rock
    10 Oct 2012, 01:42 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Maybe they have a short position against their Spain and Italian holdings so they could reduce risk. According to a lot of people though short positions are bad.

     

    Long is Good!

     

    Short is Bad.
    10 Oct 2012, 01:51 PM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    Probably do . But somebody is on the hook for all that "insured" money and they expect to be paid. When I look at what is something like 7 or $800 trillion worth of derivatives on usdebtclock..org I seriously doubt there is anywhere close to that anywhere to pay for a fraction of that , never is.

     

    Unfortunately the only way Greece, Spain, Italy, Portugal, Ireland (France is next) can pay it back is with growing GDPs which none of them have. Borrow more I guess till there is nothing left, you cant bleed blood out of a rock they seem to be doing their very best to find out. We could just erase them from a map I guess rename them Chase, Goldman. German chancellor was greeted with Nazi signs in Greece. Greeks might be broke, but not stupid. You still need a growing base of taxpayers(not a shrinking one) to consume to keep these deals going, cant borrow forever while that base continues to shrink, Sooner or later you end up with a worthless currency, 100% of the time.They know those countries cant pay.
    11 Oct 2012, 09:53 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    When you get down to the bottom line it is not banks it is the out of of control welfare states that have overwhelmed their country's ability to pay off whatever monies were borrowed to keep the checks flowing in return for votes. That is a broken system in a lot of western countries and we have to learn the hard way that nothing is free.
    12 Oct 2012, 12:12 AM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    The 25% of Spaniards who are unemployed must love hearing an American banker in NYC telling them he is not going to cut them off. I think he already has. they keep lending them more money to pay back the money they cant pay back now guaranteeing they will be back 6 months from now asking for more. Great plan. And some call Jamie Diamon the smartest guy on Wall Street.Hate to see what the dumbest guy on wall street can come up with; credit default swaps maybe?
    12 Oct 2012, 04:34 PM Reply Like
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