Jimmie Dimon's JP Morgan Chase hits the wall
Kinda surprised Lambert's not the first here with the story. JP Morgan Chase called a special after-hours press conference to reveal a few billion bucks in losses on some derivatives trades going against them. The guys at Zero-Hedge seem intent on pushing into full panic mode, with their usual hyperbole, but - who knows? What we do know is that the trillions of dollars wasted to save the financial system the past three and a half years has ensured that the big got bigger while they continue to fail, and that the derivatives markets are still going strong, without any connection to the reality of the economy inhabited by us untermenschen. Soooooo, we know that another shoe IS going to fall, somewhere, sometime. Maybe this is it.
Here is the news at Naked Capitalism.
Bloomberg is trying to keep the story out of its top headlines, but there are sidebar stories on how the markets are being roiled by intensifying rumors of JP Morgan's imminent implosion. Oh, dear, the poor markets!
If JP Morgan is going under, and if Obama is dumb enough to rescue it at this point in the election cycle, he won't have a icicle's chances in hell of being reelected. The public backlash will be fierce.