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JP Morgan lost $2 billion today, that they are admitting. Some say it could be a lot worse.

http://finance.yahoo.com/blogs/breakout ... 25z;_ylv=3

They lost it doing the same crap that got the entire system in trouble back in 2008, "complex derivatives", "synthetic markets" and all those other invented phrases designed to mask what it really is: an extremely high-risk game of poker.

The banks clearly aren't going to reform themselves. Too much upside, and too many bonuses to be had. How many more things like this need to happen before we finally put some rules back in around these things? The right wing screams bloody murder if the gov't tries to regulate Wall Street at all. An army of bank lobbyists have something to do with that. So here we sit in limbo while we watch the mega-banks try to eat each other alive. The larger economy is just collateral damage in their high stakes game.

My company 401K is done by them.

I may be [expletive].

They used it to incorrectly hedge risk - totally different. 2008 was due to giving loans to people who shouldn't have loans. Furthermore, JP Morgan has $2.25 trillion in assets. I'm sure they will be fine. It's news just to have news, overreaction.

AdmiralKird wrote:They used it to incorrectly hedge risk - totally different. 2008 was due to giving loans to people who shouldn't have loans. Furthermore, JP Morgan has $2.25 trillion in assets. I'm sure they will be fine. It's news just to have news, overreaction.

I still feel like I am [expletive].

wart57 wrote:

AdmiralKird wrote:They used it to incorrectly hedge risk - totally different. 2008 was due to giving loans to people who shouldn't have loans. Furthermore, JP Morgan has $2.25 trillion in assets. I'm sure they will be fine. It's news just to have news, overreaction.

I still feel like I am [expletive].

They have a net income of about 18 billion dollars each year. Even if your own account had those losses passed into it, you would only lose 10% of your gains for this year. So instead of earning 10% on your portfolio you earn 9%. woopty doo.

Try buying derivatives. My account fluctuates about 10% each week.

AdmiralKird wrote:

wart57 wrote:

AdmiralKird wrote:They used it to incorrectly hedge risk - totally different. 2008 was due to giving loans to people who shouldn't have loans. Furthermore, JP Morgan has $2.25 trillion in assets. I'm sure they will be fine. It's news just to have news, overreaction.

I still feel like I am [expletive].

They have a net income of about 18 billion dollars each year. Even if your own account had those losses passed into it, you would only lose 10% of your gains for this year. So instead of earning 10% on your portfolio you earn 9%. woopty doo.

Try buying derivatives. My account fluctuates about 10% each week.

I knew it! 10%!! DAMN THEM TO HELL!!!!!

Yeah but that 10% of 10% is not really your account. Is your 401K supposed to invest in a hedge fund? It's probably 70% stocks, 30% bonds, with nothing complex. That's just their firm trying to make money investing/gambling their own capital. That risk and loss was passed onto shareholders today with a 9% drop in the stock, which really shouldn't be that large considering it trades at 8 times its earnings, ergo, it should just be a 0.8% drop The other 8.2% is because people now fear more bank regulation to hurt future returns.

AdmiralKird wrote:Yeah but that 10% of 10% is not really your account. Is your 401K supposed to invest in a hedge fund? It's probably 70% stocks, 30% bonds, with nothing complex. That's just their firm trying to make money investing/gambling their own capital.

I know, I am just being the typical idiot ont he street.

Now back to the wailing and gnashing of teeth....


Those rich sons of [expletive] losing my hard earned money!!!!

AdmiralKird wrote: It's news just to have news, overreaction.

I think your reaction is exactly why [expletive] like the mortgage crisis happened.

lukethedrifter wrote:

AdmiralKird wrote: It's news just to have news, overreaction.

I think your reaction is exactly why [expletive] like the mortgage crisis happened.

that....or maybe people getting loans on homes that had no business even trying to get a loan.