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Jamie Dimon is starting to gray a bit. The classic “wunderkind of Wall Street” has replaced an literal army of “Failed State Investment Banks” that have gone the way of the “Dough Dough” after the historic great crash of 2007! Today it was reported that J P Morgan Chase has lost a quick $2 Billion dollars during the last six weeks, in what they euphemistically call: “Synthetic Investment Vehicles”. Dimon says this situation may soon be exacerbated by further bad investment ideas that J.P. Morgan Chase has made. Sounds familiar doesn’t it? Hedge Funds, Derivatives, Credit Default Swaps, Specialty Investment Vehicles……oh my that list just goes on and on doesn’t it. Countries like Iceland, Ireland, Greece, Italy, Spain, Portugal and bunches more to be named at a later date have more than a passing acquaintance with these “Wall Street Miracles”. EU and World Bank Commissioner and Christine Lagard has warned: “This could happen again…..soon”
Bernie Madoff is serving his 70 years in prison and rightfully so. Bernie Ebbers at World Com, Jeff Skillings at Enron……plus a huge list of lesser knowns all are serving time …. and rightfully so. When the Bush-Obama Administrations had to bail out Fannie and Freddy, AIG, General Motors and more, just to keep the economic world upright…there was a warning label included: “Renew and fix the Glass-Steagall Act that was removed under Bill Clinton. Restrict Investment Banks from dawdling and playing in the speculative high risk Derivatives and Hedge Fund markets that utilize Synthetic Investment Vehicles.
Well, what happened? The same bankers crossed off their Trillions in losses and started over. “Hey, here is a fresh piece of paper!” “Look how clean it looks?” Did the Congress Act, did the Congress go after the systemic abuses that are still rampant in the system? No, they went after minor issues which had nothing at all to do with the Regulation of Banking. It was business as usual and they have even tried to keep the Real Estate bubble inflated along the way. Especially at the higher levels of Residential and Commercial properties. The tiny write offs and write downs to people facing foreclosures are just a bunch of frosting on a cake… standing out in the rain.
The situation is bad. If J P Morgan Chase has to come clean because they are facing even more losses in the coming weeks – you know the situation has to require some “corrective immediate action”. In the old days, they would have just closed the bank to all business until they could get themselves back to a clean and fully solvent state of affairs. Where are those Bank Regulators? Is this strictly an SEC responsibility? Where is the Congressional oversight? What is the Treasury Secretary doing on this? Come on folks, Paul Revere has just made his ride….and people are standing around wondering where to get their next laite and croissant. Will the Fed have to bail out J P Morgan Chase? Go ahead…..we have bailed everyone else out. Hey, you can’t find some out of work bus boys or liquor store clerks that can do this type of global banking? You need folks that understand the system and can unwind these very complex Synthetic Investment Vehicles over several years time….maybe up until they retire with giant bonuses, mega annual salaries and huge golden parachutes that include humongous stock options offered at ridiculously price stock lows.
Please put these folks in jail. Then we will at least know where they are. They are still “juicing the system” and they are still stealing from the public hand over fist. Short Selling is when you think the price of something is going to go down….Long Selling means you are going to keep the stock or investment for a longer period of time. They need to close the Short Sell market completely…until further notice. The abuses seemingly continue unabated with no relief in sight. The double dealing has become part of the culture. Selling SIV’s to any customer you can find and turn around and sell short while you sell every one of those issues …in lightning speed by computer. Hey, who would know? Guess J P Morgan Chase did a little too much Short Selling …eh?
How about an emergency session of Congress to deal solely with the Banking Issue. Weren’t they supposed to do that back in 2007? Shouldn’t the SEC step in now….before it becomes history and offer some suggested emergency regulations?