Warm Southern Breeze

"… there is no such thing as nothing."

Posts Tagged ‘JPMorgan Chase’

The iPhone Stimulus

Posted by Warm Southern Breeze on Friday, September 14, 2012

Gonna’ get yours?

The iPhone Stimulus

By PAUL KRUGMAN, September 13, 2012

Are you, or is someone you know, a gadget freak? If so, you doubtless know that Wednesday was iPhone 5 day, the day Apple unveiled its latest way for people to avoid actually speaking to or even looking at whoever they’re with.

So is the new phone as insanely great as Apple says? Hey, I’ll leave stuff like that to David Pogue. What I’m interested in, instead, are suggestions that the unveiling of the iPhone 5 might provide a significant boost to the U.S. economy, adding measurably to economic growth over the next quarter or two.

Do you find this plausible? If so, I have news for you: you are, whether you know it or not, a Keynesian — and you have implicitly accepted the case that the government should spend more, not less, in a depressed economy.

Before I get there, let’s talk about where the buzz is coming from.

A recent research note from JPMorgan argued that the new iPhone Read the rest of this entry »

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Apple’s iPhone 5 Sales Could Add Half a Point to GDP

Posted by Warm Southern Breeze on Monday, September 10, 2012

Apple’s iPhone 5 Sales Could Add Half a Point to GDP

Published: Monday, 10 Sep 2012 | 4:35 PM ET

By: John Melloy
Executive Producer, Fast Money& Halftime

iPhone 4S
Michael Nagle | Stringer | Getty Images News

Sales of Apple’s [AAPL] iPhone 5 could add as much as half a percentage point to U.S. fourth-quarter annualized GDP, according to JPMorgan, underscoring the Read the rest of this entry »

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Tim Geithner is out as Secretary of Treasury. Who’s in?

Posted by Warm Southern Breeze on Wednesday, May 23, 2012

Good bye, and good riddance.

Robert Reich would do a good job, and he’s been tested and served in other areas in the present, and previous administrations.

Guessing game begins over next Treasury chief

1:05am EDT

By Glenn Somerville

U.S. Treasury Secretary Timothy Geithner takes a tour of the Marlin Steel Wire Products factory in Baltimore, Maryland, May 17, 2012. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – Wanted for the Treasury Department: a new boss who can fix trillion-dollar-plus budget deficits, overhaul the tax system and spur a reluctant Europe into fixing its debt crisis.

It’s a tall order, especially when the new Treasury chief also must deal with a fractious Congress – and all for a salary lower than that paid to many junior Wall Street bankers.

Economists, investors and veterans of past administrations are appraising potential successors to Treasury Secretary Timothy Geithner, either in a new Obama administration, if President Barack Obama is re-elected, or under Mitt Romney.

Geithner has made it clear that he is leaving the post he has held since January 2009 even if Obama, a Democrat, beats Romney, the presumptive Republican presidential nominee, in the November 6 election.

Lots of names are making the rounds. Among Democrats, they include finance leaders like Larry Fink of asset management firm BlackRock and politically connected Washington insiders like fiscal expert Erskine Bowles.

If the White House goes to the Republicans, Read the rest of this entry »

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JPMorgan Chase CEO blames “Errors, Sloppiness & Bad Judgement” for $2B Credit Default Swap & Derivatives loss

Posted by Warm Southern Breeze on Thursday, May 10, 2012

Give particular attention to this sentence, which is found later in the article: “Bank executives, including Dimon, have argued for weaker rules and broader exemptions.”

Give attention also to the last paragraph of the second story: “Of course, this loss only goes to show how weak the Volcker Rule is: Dimon is adamant, and probably correct, in saying that Iksil’s bets were Volcker-compliant, despite the fact that they clearly violate the spirit of the rule. Now that we’ve entered election season, Congress isn’t going to step in to tighten things up — but maybe the SEC will pay more attention to Occupy’s letter, now. JP Morgan more or less invented risk management. If they can’t do it, no bank can. And no sensible regulator can ever trust the banks to self-regulate.”

Is there any remaining argument against deregulating banks?

Is there any remaining argument against re-instituting the Glass-Steagall Act (which separated Banks, Insurance & Wall Street and forbade them from commingling in each others’ businesses)?

Ahead of the Greek financial crisis – in which Goldman Sachs had a direct and unscrupulous role by hiding sales of financial vehicles from Greek, European & American regulators – German chancellor Angela Merkel said this at a March 5, 2010 press conference in Berlin with Greek Prime Minister George Papandreou, (ref: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a26n.U6qS6cU):

Credit-default swaps, where you insure your neighbor’s house just to destroy it and make money from it, that’s exactly what we have to curb.”  

Now, I wouldn’t expect you or the average reader to be knowledgeable about these things. Honestly, most folks aren’t. But that’s not a condemnation of you, dear reader. Rather, it is a statement acknowledging that banks, bankers, Wall Street types, and Insurance firms do not want to be regulated, and would rather operate free-willy-nilly – without any rules. You and I must  abide by rules. Why shouldn’t they? And as they have consistently demonstrated, they cannot be trusted to do the right thing.

For additional information on Goldman Sachs involvement in the Greek Debt Crisis, I refer you to this 02/08/2010 news item from German news magazine, Der Spiegel: “Greek Debt Crisis How Goldman Sachs Helped Greece to Mask its True Debt,” By Beat Balzli.

JPMorgan Chase acknowledges $2 billion trading loss and ‘many errors’

By Associated Press, Updated: Thursday, May 10, 6:05 PM

JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money.

The company’s stock plunged almost 7 percent in after-hours trading after the loss was announced. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well.

“The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought,” CEO Jamie Dimon told reporters. “There were many errors, sloppiness and bad judgment.”

The trading loss is an embarrassment for a bank that came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.

The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury.

Bloomberg News reported in April that Read the rest of this entry »

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Hedge Funds, Derivatives, Credit Default Swaps… to regulate, or not to regulate. That is the question.

Posted by Warm Southern Breeze on Saturday, February 25, 2012

And so, the big wheels have turned.

It just seems that they turned away.

What can be said when a significant part of the financial system was nothing more than a mere shambles, a veritable house of cards built upon shifting sands, a shell game all without any regulation or oversight – and certainly no rules.

Need we have rules of engagement, of operation, of compliance to honesty, integrity and ethics?

But of course, yes!

But why?

Need we ask why?

Battle lines forming between MF Global customers, hedge funds

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011.  REUTERS/Shannon Stapleton

By Nick Brown and Katya Wachtel

Fri Feb 24, 2012 2:36pm EST

(Reuters) – The MF Global saga could soon become a legal battle between hedge funds and the futures brokerage’s shortchanged customers, with more than a billion dollars at stake.

As the investigation into the collapse of Read the rest of this entry »

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Re-examining Global Economics, Occupy Wall Street, and National Security

Posted by Warm Southern Breeze on Monday, October 24, 2011

Doubtless, if you’ve been paying any attention to news – either online, broadcast or print – you’ve had to at least heard something about the Occupy Wall Street movement. And no matter where you fall along the political spectrumarch-conservative, neo-conservative, raging liberal, classical liberal, Austrian liberal, middle of the road, pragmatist, mash-up, federalist, states rights, moderate, or any conglomeration of the above, or even none at all – you certainly have some opinion – good, bad, or indifferent – about the message, the messengers, and the movement – no matter what you may hold to be true about it.

The movement has also spread to various cities throughout the United States, including Boston, Los Angeles, Chicago and other areas. None, however, have had as much action and publicity as the New York City movement.

The movement is innervated by Read the rest of this entry »

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Banks encourage “short” sales to invigorate economy, public not enthused

Posted by Warm Southern Breeze on Wednesday, May 18, 2011

Our nation’s economy has for years rested upon manufacturing, which has been the “backbone” of any industrialized nation. (Note the phrase “industrialized nation.”) Now that industry has been “out-sourced” to China, India, and other nations with emerging economies, not only has America become dependent upon other nations (not independent), but our national security and standard of living has been compromised.

Thus, banks, insurance companies and stock brokerage houses – who have again been allowed to enjoy their incestuous fiscal orgies because the Glass-Stegall Act was repealed – are forced to invent artificial commercial paper (derivatives, etc., which no one can thoroughly explain) to increase profits. In conjunction with the computer-driven algorithms of auto-traders and futures markets, the risks Wall Street and banks make (upon the backs of the people) are increasingly becoming a veritable “house of cards” built upon shifting sands.

The uncertainty of our economic future is even more precarious, and is no more clearly demonstrated than in this instance, when banks can’t sell houses they own, even after taking significant reductions (losses), and providing incentives for private buyers.

After reading the following news story, consider the implications for our economy. Read the rest of this entry »

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