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The Stock Room blog go to start April 6, 2006—April 6, 2012
apppro’s take for 05/13/2012 07:30 am EST
“Whiter Shade of Pale” The story of JPM and the Lehman’s Principle
This isn’t a story of Ahab’s white whale Lehman’s Principle: The confidence destruction of an entire entity based on SHORT-term re-evaluation of LONG-term holdings due to unrestricted rumormongering and gang-shorting! Basically, taking a 30-YEAR something and basing it on a 30-SECOND whatever! Read First: Index That Beached J.P. Morgan’s Whale Gets Whackier - MarketBeat - WSJ
Yes, JPM’s London whale may have bit off more than he could chew, but in this case size should not be the issue. What matters is how the things that he was chewing on were poisoned by others so much that anything that was finally swallowed was poisonous for sure. Please keep in mind the following quote & date from the above article as you read on. Also remember those 3 dreaded words: MARK-TO-MARKET M2M! “Kavi Gupta, a credit derivatives trader at Bank of America Merrill Lynch, wrote in an April 10 note to clients that it was time to take advantage of the index moves. “What better opportunity than Easter Thursday with Europe cratering to annihilate people,” he wrote. A BofA spokeswoman declined to comment. Since then, traders say, an increasing number of hedge funds and some asset managers have placed more bearish bets, taking opposite positions to J.P. Morgan and possibly hurting its ability to pare its positions.” Time Line: 1. London whale starts to LONG-term financial instruments based on Europe. 2. Europe starts to get better. 3. A couple of short hedge funds start to build positions AGAINST those whale’s holdings. 4. Whale adds on positions. 5. Europe’s re-failure rumors begin, again. 6. More shorts start to increase their positions. 7. Europe’s election rumors escalate. 8. Whale increases his positions. 9. Even more shorts INCREASE their positions. 10. Rumors over the demise of whale’s positions escalate where even BofA says to GANGSHORT THE ENTIRE POSITION! 11. Elections cause GREAT upset. 12. Shorts GANGSHORT to the extreme. 13. NOW, here is where I get a little confused: Somehow JPM is FORCED to M2M value those LONG-term positions way before they became due, hence the terminology as Jamie Dimon put it (and I paraphrase), “We are forced to take a M2M write down of $2 billion dollars.” Isn’t this the exact same thing we did to OUR financial system back in 2008? YES!!!!!!!!!!!!!! For JPM it was just easier to devalue the holdings than fight it. THEY HAVE PLENTY OF $$$$, but it still makes me sick to let those SHORT-term traders/traitors get away with this crap! Isn’t that why we have Gitmo? Why the hell are some calling for an investigation into JPM’s whale for seemingly making LONG-term investments in our ally’s? Instead, why the hell aren’t we investigating those unregulated short funds, and the disgraceful way they manipulate and destroy our entire financial system? _______________________________________ apppro’s take for 05/06/2012 04:30 pm EST Senator Clinton to Christopher Cox “Please stop the short sellers!”
PLEASE STOP THE SHORT SELLERS! Link
Wow, lot of good it did back then! I wonder what would have happened if they had just done it right and unilaterally? Too late now, or is it? I will say it over and over and over… implement my ‘Stop the Insanity Now’ tax plan and TAX THE CRAP out of all these SHORT-term thinkers and traders/traitors. Koodoos to narrator for finding this. _______________________________________ apppro’s take for 04/28/2012 04:30 pm EST “Can’t we all just get along?” 20 years later.
I’m sure many of you older people out there remember those horrible times. It was a National disgrace, spurred on by a media hell bent on exploiting the divided City of Los Angeles. Ethnic hatred, social unrest, and financial inequities abounded. Now flash forward 20 years:
It really doesn’t seem to matter anymore, does it? No matter how much each side wants something to get things done, and in this case the SAME DAMN THING, our collective insanity in Washington again just has us AGAIN at each other’s throats. This all flows down form the top! Our “Nation of Bash & Blame!” was not created in a vacuum. Until we stop this class warfare and look towards LONG-term solutions and compromise: NOTHING WILL EVER CHANGE! Some 20 years later we all have to ask again, “Can’t we all just get along?” Instead of just a divided City at war with itself, this time what we will end up with is
_______________________________________ apppro’s take for 04/24/2012 08:30 am EST The 2015 Fiscal Cliff Solution Now all we will hear for the next 9 months is how the market and economy will crash into chaos due to the expiring of all kinds of Bush era tax cuts on 12/31/2012. Most of the proposed tax increases are frightening – especially for the retirees of this nation. Talk about the calendar Mayan Prediction… maybe this is what they meant: Armageddon by way of extreme tax stupidity! This morning I even saw an interview on CNBS of one of the biggest market proponents who NOW is calling for Armageddon because of this tax debacle. (Not to mention that his comb-over has gotten worse!)
Come on guys… the solution is simple. We cannot allow this uncertainty or even the conversation of those eventual tax increases to occur for another five more minutes. We certainly DO NOT NEED ANOTHER SUMMER LIKE LAST YEAR! Now that was a real disgrace! Here is a simple, comprehensive, and bi-partisan approach to the issue. DAMN IT PEOPLE… ADOPT IT! EXTEND ALL taxes to 01/01/2015 with these MINOR changes: · Eliminate the payroll tax cut as of 12/30/2012. (Continued on page 2) |
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The Stock Room
blog Stocks, Homebuilders, & Bank Stocks on page 2. blog ETF’s, Water, Airlines, Casino, & Gaming Stocks on page 3. blog Alternative Energy & Stem Cell on page 4. blog Rare Earth & Chinese Game on page 5. News & Financial Resource links on page 6. Click here for your FREE Downloads. The Quote Room 20 minute delayed. apppro’s comment thread on Seeking Alpha apppro’s comment thread on Forbes.com apppro’s comment thread on MarketWatch.com apppro’s comment thread on WSJ.com (click on activity tab)
The Most DISGRACEFUL quote of 2012, so far!
The BEST quote of 2011
The Most DISGRACEFUL quote of 2011
The 2nd Most DISGRACEFUL quote of 2011
STOP the INSANITY NOW! - #StIN Revised Tax Rules: 1. Capital gains 5+ years* - 5% tax on capital gains 2. Capital gains 2 > 5 years* ** - 15% tax on capital gain 3. Capital gains 1 > 2 years* - 35% tax on capital gains 4. Capital gains 6 > 12 months - 45% tax on capital gains 5. Capital gains under <6 months - 55% tax on capital gains 6. Most critical of all — Institute a capital gains tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund. *Anyone whose main source of ‘income’ (retired persons excluded) that comes directly from capital gains, should be taxed at never less than the 1>2 year 35% rate—no matter what the cg term length. ** Dividends are taxed at this level—15%. The 5 Golden Rules - #The5GoldenRules 1. Immediately, reinstate the Up-Tick Rule. 2. Crack down on naked short selling. Require stock certificate #'s when a short sale needs to be covered, including ETF’s. a. Stop the shorting of ALL ETF’s. This is just legalized naked shorting—makes no sense. 3. Institute some rules on how the media ’reports’ news in order to prevent rumor-boarding. Not censorship… just sensibility & responsibility. 4. Pass a Wind-Fall Capital Gains Tax of 65% on ALL short sales not directly tied to a long buy by a regulated hedge fund! 5. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. NO pre or aftermarket trading. EXPORT THE CRAP OUT OF NATURAL GAS! Þ Institute a 10% EXPORT TAX to be paid by the buyer at the point of export. · Apply 8% DIRECTLY to paying down the deficit, ONLY. · Apply 2% to help fund our Superfunds Cleanup. · So that NG prices never go crazy, have that tax increase the higher NG gets. For example, if NG gets to $5.50 the tax increase to 20%, $7.50 the tax becomes 30%, ETC. Therefore the buyers wont’ want it and the prices will be held in check. In the 2012 elections vote for:
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