The Quick and Dirty on J P Morgan (the man) vs Rockefeller (his nemesis.)

May 31, 2010 4:01 PM ET
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Contributor Since 2009

Problems with the media vis a vis finance is nothing new. And remember: "It is not the critic that counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena whose face is marred by dust and sweat and blood; who strives valiantly, who errs and who comes short again and again because there is no effort without error or shortcoming but who does actually strive to do the deeds, who knows great enthusiasms, the great devotions, who spends himself in a worthy cause, who at best knows in the end the triumph of high achievement and who at worst should he fail at least fails while daring greatly so his place shall never be with those timid souls who know neither victory nor defeat." Theodore Roosevelt.

JP Morgan the man once quipped he could never understand why all this interest in Rockefeller and all his oil when "he doesn't even have a drop of the stuff."  How's that for arrogance!  Needless to say there was a President by the name of Roosevelt (two actually!) who understood immediately how much this comment revealed about a "JP weakness" few had ever forseen. In short JP understood the substance but didn't understand the "substance of the man" so to speak.  One should keep this in mind when investing in our current "Rockefeller" (as in "me not worry about oil") market.  There is now the realization of great reward upon us as an investor in our current circumstance.  It all comes down to a simple substance of course and that substance is not so much "oil" per se but ironically in fact what I like to call "oil like credit."  Don't get me wrong, I believe we do indeed have an oil crisis.  Because "oil" is the great "economiser" "oil makes everything affordable" and this was something Rockefeller never understood for all his greatness.  Indeed "the more expensive the better save for equities" could be his operating business philosophy.  This was not true of Morgan who as the true genius between the two understood the "value" of "faster, better, cheaper" and as a consquence foresaw the "solution" when it came to oil as "more, more and more still."  And as our Rockefeller-esque bank failures continue apace (with all of Europe in the obliteration seat now) one need only look at Wal Mart and see who the true "winner" as this next great economic "war" between these two titans comes to yet another conclusion.  Interesting isn't it that the bank that bear's Morgan's name couldn't be any more "different" than how it was at its founding.  This is not something Rockefeller would understand and indeed if he were to see "finance" today he would probably exclaim "this is some Morgan hoccus-pocus again."  And of course Morgan "would agree" in the sense that "in the conspriracy lies a cheap substance provided it's there."  In short if this price of oil begins to decline dramatically over the next few weeks and months thank Morgan "the man" who created our notions of modern finance and a "reversion to the mean" in of all places in the oil space.



Disclosure: bullish
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