JPM are the biggest holders of derivative instruments. They would be the biggest loser in a systemic situation.
http://www.gata.org/node/6142
JP had to solve bear
Started by
Tor
, Mar 21 2008 07:29 AM
1 reply to this topic
#1
Tor
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- Traders-Talk User
- 7,647 posts
Member
Posted 21 March 2008 - 07:29 AM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
#2
nimblebear
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- Traders-Talk User
- 6,062 posts
Welcome to the Dark Side !
Posted 21 March 2008 - 11:45 AM
Agreed.
The maze of derivative webs has ensnared 100's of financial institutions, funds, companies, and governments. And they all breathed a huge collective sign of relief when the deal was announced. Thats why the market generally has been up since. They all know there is a huge downside to all of this. Noone wants to even imagine it, or dare try to calculate it. They want it just to go away. Not that simple.
So the JPM and Fed actions will likely keep them delusional for at least another 10 years !
Side note about the article: JPM's statement that the underlying value of the $77 trillion being only .10% of that is disingenious as well. So its "ONLY" $77 billion worth of so-called "exposure" or what is "owed." To them that is .... Problem is how it is all interconnected and how many other organizations they would take down in the process if these bets continue to fail. And there will be more failures. They have all been playing financial gods and attempting to devine and alter the future.
As the old saying goes, be careful the web you weave.
Some day this will spawn a whole generation of classes and discussions on ethics. The ethics of those who created this, those who knowingly or unwittingly allowed it, and those who facilitated it. Why ? Because all that will be likely left when this takes its course, will be just that.
\
Talk. And talk in this case is unfortunately not cheap. Many will have payed a huge price for all of this. Many already have. and many were simply unwitting victims.
Ah.... the "virtues" of unfettered capitalism.
The maze of derivative webs has ensnared 100's of financial institutions, funds, companies, and governments. And they all breathed a huge collective sign of relief when the deal was announced. Thats why the market generally has been up since. They all know there is a huge downside to all of this. Noone wants to even imagine it, or dare try to calculate it. They want it just to go away. Not that simple.
So the JPM and Fed actions will likely keep them delusional for at least another 10 years !
Side note about the article: JPM's statement that the underlying value of the $77 trillion being only .10% of that is disingenious as well. So its "ONLY" $77 billion worth of so-called "exposure" or what is "owed." To them that is .... Problem is how it is all interconnected and how many other organizations they would take down in the process if these bets continue to fail. And there will be more failures. They have all been playing financial gods and attempting to devine and alter the future.
As the old saying goes, be careful the web you weave.
Some day this will spawn a whole generation of classes and discussions on ethics. The ethics of those who created this, those who knowingly or unwittingly allowed it, and those who facilitated it. Why ? Because all that will be likely left when this takes its course, will be just that.
\
Talk. And talk in this case is unfortunately not cheap. Many will have payed a huge price for all of this. Many already have. and many were simply unwitting victims.
Ah.... the "virtues" of unfettered capitalism.
Edited by nimblebear, 21 March 2008 - 11:47 AM.
OTIS.
