Bob Mould: It’s Too late

Bob Mould – It's Too Late by BobMould-Official

  1. #1 by cav on May 11, 2012 - 7:55 am

    It’s never too late for TBTF:

    JPMorgan suffered a $2 billion trading loss after an “egregious” failure in a unit managing risks, jeopardizing Wall Street banks’ efforts to loosen a federal ban on bets with their own money.

    Dimon, 56, had transformed the unit in recent years to make bigger and riskier speculative trades with the bank’s money, five former employees said.

    “There were many errors, sloppiness and bad judgment,” Dimon said as the company’s stock fell in extended trading. “These were egregious mistakes, they were self-inflicted.”

  2. #2 by cav on May 11, 2012 - 8:09 am


    Either Holder pursues this or there’ll be another gracious bailout.

    Be sure to fill out your ballot and mail it in today.

  3. #3 by cav on May 11, 2012 - 10:35 am

    I would like to make the point, and nail it to the door of the spineless media, that JPMorgan had to admit, while the position was still open, that their ‘hedge’ had blown up in their faces, and that it was no hedge at all, but a thinly disguised attempt to circumvent the curbs on proprietary trading. More simply, they were preparing to flout the law and were brazenly lying about it, and their use of leverage and very risky bets in search of enormous bonuses. And they are doing the same thing on a much larger scale in other markets.

  4. #4 by cav on May 13, 2012 - 10:59 pm

    Elizabeth Warren: JPMorgan Chase’s Jamie Dimon Should Resign From NY Fed Board

    “Wall Street banks continue to have fundamental problems, and tough oversight and accountability are urgently needed,” Warren said in a statement accompanying the announcement. “But Dimon is not only the CEO of JP Morgan, he is also a member of the Board of Directors of the New York Federal Reserve Bank, where he advises the Federal Reserve on the oversight of the entire financial industry.”

  5. #5 by Ronald D. Hunt on May 14, 2012 - 10:59 pm

    JP Morgan/Chase is a $200 billion dollar bank, their is no need to bail them out. Even if the lose is closer to the $20 billion dollar figure i have heard floated around, It sounds like the $2 billion dollar amounted admitted to so far is more to prepare people for a larger announcement or possibly they are trying to down play the size while the regulations on the volelker rule are still being watered down or having their implementation delayed further.

    Elizabeth Warren has the right idea however, reinstate Glass Steagall and repeal the Gramm Beach billy act in its entirety.

  6. #6 by Titus V. on May 14, 2012 - 11:23 pm

    Either way this what our president imagines is a well run outfit…yeah we’re sure, for a pack of thieves.

  7. #7 by cav on May 15, 2012 - 10:17 am

    It is obvious we are still ‘governed’ by people who do not believe in regulating business but only personal behavior of the unwashed masses.

  8. #8 by Titus V. on May 15, 2012 - 10:28 am

    This oligarchy controls the distribution of the created money. As long as the idiot masses can be sidetracked with abortion, gay marriage and other social issues, and the like, they can never become to aware or angry about the situation concerning their earned money, which is being watered down with every created dollar..5 trillion in the past 3 years.

    All this represents not only a retroactive cheating of all nations that have done business in dollars, but a cheating by your government of YOU as well.

  9. #9 by Ronald D. Hunt on May 15, 2012 - 10:34 pm

    “which is being watered down with every created dollar..5 trillion in the past 3 years. “

    Actually the volume of dollars on the market has decreased. Due to the nature of the fractional reserve system and the downturn banks have been in a situation where their leverage ratio’s continue to increase even as they pay down their Fed discount window loans.

    The bit the right wing seems to miss on an intellectual level is that money is created via two different methods not just one.

    Their is the obvious one that everyone can name right off the bat, they print it and purchase Bonds from the federal government.

    The second way money enters the economy is via the fractional reserve system, that is private banks use their depositors assets as a guarantee for a loan from the Federal reserve bank. This is what the Fed discount window is.

    The funny thing that many people seem to miss is that these loans from the Fed discount window are in fact just that LOANS. And further these loans are not made with money that already exists in the system, they are made with freshly printed money.

    What has happened is that as peoples homes are foreclosed on and the market went haywire the banks revenue went down, This combined with people withdrawing their savings lead to a situation where the banks did not have enough capital to pay back depositors and pay back the Fed discount window loans made with said deposits.

    The bailouts of course happened and stopped the collapse but it has still left banks in a position where they don’t have enough money(they are under capitalized) to fully perform their intended economic function. Basically they have to pay down their Fed discount window loans with whatever revenue they bring in and lower the rate at which they lend money back out.

    This has the net result of removing money from the economy, At least $40 trillion dollars or so by the time all is said and done. This means that the quantitative easing is actually an anti-deflationary tactic and is unlikely to cause structural inflation(not to be confused with CPI).

    Now their is inflation in the economy but it is unrelated to QE1-3, has much more todo with the price of oil, China, Europe, and credit access problems in business supply chains.

  10. #10 by cav on May 16, 2012 - 7:59 am

    An interesting clarification Ronald. Thanks

  11. #11 by Titus V. on May 16, 2012 - 10:57 am

    All very nice..however, the massive money creation is now sitting on our shoulders in the form of the national debt.

  12. #12 by Ronald D. Hunt on May 16, 2012 - 11:12 am

    debt is an illiusion for Nations that control their own currency.

  13. #13 by Titus V. on May 16, 2012 - 1:58 pm

    An illusion? Really? Perhaps then I can dump any debt I have onto person believes this Ronald, there is no illusion over the bad debts Americans now hold in the trillions..those who get the created money and then turn it into debt, maybe they think that debt is an illusion..but then again not, as they have no doubt taken their pound of flesh from the illusions before passing the illusion onto the populace and turning the illusion into usurious debt.

  14. #14 by Ronald D. Hunt on May 16, 2012 - 7:17 pm

    Bonds are to be repaid in US dollars, The United States controls the US dollar(who would have thunk it!).

    Between 1999 and 2007 The Fed under Bush printed $220 trillion dollars and pushed them out via the Fractional reserve system(Fed discount window loans).

    Our debt is around $14 trillion dollars and the Fed needs to do some level of Quantitative easing to fight structural deflation anyway.

    We don’t even have to print the full amount, just enough to lower the deficit to the point that tax revenue would pay the remainder off within the 10year window of the bonds currently issued.

    The inflation rate would go from 2-3% per year to 6-7% per year for the next year or possibly 2. After that due to increased capitalization at the banks and improved credit access to businesses CPI would go down and level off to whatever the structural inflation rate is(likely around 1.5%-2%).

    We may want todo this to increase bank capitalization anyway purely due to Europe. Their foolishness with the Euro is finely coming due.

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