Is JPMorgan Chase Really Too Big to Fail?
By 1voxpopuli on May 17, 2012 | In u.s. economy, world economy, stock market, federal reserve
That question seriously needs to be answered before things get any worse. JPMorgan Chase recently announced $2 billion (and counting) in trading losses about a week ago. Earlier this week it was reported that investors had lost $15 billion in stock after the banking institution took a hit on the stock market as a result of the trading fiasco, with the bank losing over 1/10th of its market value.
The problem, it seems, is that the banks, of course, want little or no regulation from the federal government, and in so doing, left open a loophole for JPMorgan to crawl through, leading to this enormous trading loss.
http://www.nytimes.com/2012/05/12/business/jpmorgan-chase-fought-rule-on-risky-trading.html?_r=1
It has been discussed in this blog, as well as being reported on by others, that if there is a repeat of 2008, the Federal Reserve will be helpless with interest rates still perched near zero. Of course, if there is no repeat of the 2008 crisis, then we're still in troubled waters, thanks (at least in part) to the Fed's counter-measures for fighting that crisis 3 1/2 years ago.
http://money.msn.com/bill-fleckenstein/post.aspx?post=6f26569b-6654-4f71-8bb6-6095a58da9dc
The book, "The Coming Collapse of the Global Economy" points out in one of its chapters, "Sadly, it is a game..."
Jon [Stewart] pointed out that we had been sold the notion that 401(k)s were safe, long-term investment strategies, while there was apparently a clandestine market where huge sums of money were quickly traded in dangerous, unethical manners, and that it felt to those who had invested in the safer, long-term market that the pension plans and paychecks of the American labor force were financing this game behind closed doors. Stewart noted that the investment bankers, etc., lost everyone’s hard earned savings and destroyed everything in their path, while making themselves rich, and walking away unscathed. Jon then made this interesting point about what truly is valuable: Real value is work, not get-rich-quick schemes.
Think of it this way: When Americans who were ready to retire into their golden years lost their retirement savings through the devaluation of their 401(k)s and pensions it wasn’t really money that was lost. These Americans now have to continue slaving for survival. What has been lost is part of their lives, not only that portion of which they had already worked, putting away part of their earnings for retirement, but also that part of their lives which was supposed to be for relaxation after retirement, but now will be used to continue working in order to make ends meet.
$2+ billion in trading losses quickly led to $15 billion in investor losses as the value of JPMorgan Chase's stock plummeted. One of these times, a "mistake" like that won't stop with just the stockholders losing money, collapsing the entire system like a row of dominoes, with the Fed watching, powerlessly, by the sidelines.
For a detailed discussion on how this could come about, why it is even possible, and how to possibly not only survive such a scenario, but also to avoid it altogether, purchase the 124 page paperback edition of "The Coming Collapse of the Global Economy". It is available in paperback for only $8.95 + shipping...
https://www.createspace.com/3672267
Or, you can read it on Kindle, in digital format. The cost is only $2.99...
It is also available on Amazon's sites in the U.K., Germany, France, Italy and Spain...
The best option is to be prepared in any event, especially when things can change drastically in a matter of days, or even hours...
http://morphinedreams.com/blog5.php/2008/10/19/survival-guide-1
http://mormonism.suite101.com/article.cfm/an_lds_guide_to_beginning_food_storage
http://www.americanpreppersnetwork.com/
http://money.msn.com/family-money/survive-a-disaster-in-your-condo-freedman.aspx?GT1=33006
Feel free to "Like" the book, "The Coming Collapse of the Global Economy", on Facebook...
http://www.facebook.com/people/ComingCollapse-OfThe-GlobalEconomy/100003371133892
