Too Big To Learn A Lesson: JP Morgan Assfucks Itself

[Habsburg]

It's not like they won't be bailed out, so why shouldn't they risk 2 billion in 6 weeks?

Except when they finally have it under control it may be as high as 5 billion.

[DGuller]

It's not like they won't be bailed out, so why shouldn't they risk 2 billion in 6 weeks?

Except when they finally have it under control it may be as high as 5 billion.

So what?  They'll just withhold 10% of the planned bonus payments, and they're even.

[Habsburg]

 

[Admiral Yi]

Sometimes, you make your bank crash.  See the Barrings case.  The guy used derivatives to offset his position.  2 more weeks and he would have been back in the money, recovered all his losses.  But alas, there was an earthquake in Kobe.  Stock market crashed.  Deeply.  Bankruptcy.

Where are you getting this from?  The movie made it out that derivatives, Nikei futures to be exact, were his entire position.  And that was what Barings sent him to Singapore to do, trade in Nikei futures. 

The problem was he concealed the size of his bets from London.

[The Minsky Moment]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

[PDH]

A couple of billion here, a couple of billion there - eventually it is gonna be real money.

[HVC]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

... so what you're trying to say is that they have too much money? Iagree. Lets tear down the machine!

[The Brain]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

CdM is the only one with an IRA account here.

[DGuller]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

CdM is the only one with an IRA account here.

[jimmy olsen]

JP Morgan Assfucks Itself

Finally, a topic that CdM can talk about with authority.

[Zanza]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

Isn't it different because your IRA is all equity, whereas JP Morgan is highly leveraged?

[Admiral Yi]

I did my own calculation based on an FT article that said the loss dropped JP Morgan's capital from 8.4% to 8.2% and came up with $791 loss on 32K.

[alfred russel]

Let's say you got a $32,000 stock portfolio in an IRA account,
Let's say that over a few weeks you lose $200 on a couple trades.  Would that cause you to panic?

Your loss in proportion to your total portfolio is equal to JP Morgan estimated loss on these derivative positions.

Say it was a joint IRA with my wife, and we had agreed that we weren't going to speculate with our retirement money. If she then announced a $200 speculative loss, I would be concerned.

[PDH]

Say it was a joint IRA with my wife, and we had agreed that we weren't going to speculate with our retirement money. If she then announced a $200 speculative loss, I would be concerned.

That's why women should stay in the kitchen.

[alfred russel]

Say it was a joint IRA with my wife, and we had agreed that we weren't going to speculate with our retirement money. If she then announced a $200 speculative loss, I would be concerned.

That's why women should stay in the kitchen.

With a smart phone, and an etrade app?