Lonnie Hicks

Freshman - 614 Points (www.lonniehicks.com / Chicago Ill)

The European Debt Crisis- 2012- Updated 5/20/12 - Poem by Lonnie Hicks

5/17/12

JP Morgan is in the news announcing losses in the neighborhood of 3 billion dollars.The American press, in this case the NY Times, offers us the soothing response that this is not so bad and that everything will be ok.

Everything will not be ok for the following reasons, moreover, we want to know what this means, and who wins and who loses.

See the article below first and then we discuss it and its relationship to the European Debt crisis.

http: //dealbook.nytimes.com/2012/05/16/jpmorgans-tradi ng-loss-is-said-to-rise-at-least-50/

To quote from the article:


'The Federal Reserve is examining the scope of the growing losses and the original bet, along with whether JPMorgan's chief investment office took risks that were inappropriate for a federally insured depository institution, according to several people with knowledge of the examination. They spoke on the condition of anonymity because the investigation is still under way.

The overall health of the bank remains strong, even with the additional losses, and JPMorgan has been able to increase its stock dividend faster than its rivals because of stronger earnings and a more solid capital buffer.'

Now the huge loss in this is treated as minor and the health of the company is described 'remains strong.' (The NY Times reflects in its coverage the fact that the finance industry is so strong in NY that the Times slants the news when it covers the Jamie Dimon's of the world)

Now how, you ask, can a bank lose this much money and still remain strong?

Here how:

First, it was not JP Morgan's money that was lost, it was yours and my money because JP Morgan-Chase has federally-insured deposit accounts which means your and my bank accounts which it used for these huge gambles.

We actually pay at least six times for the 3 billion JP Morgan loss.

We lose if our 401 savings are deposited with Chase by our employers and labor unions, states and city governments. They all lose and, therefore, our 401k goes south, our city taxes will likely go up or there will be layoffs because those institutions will not be receiving income for these 'investments' they thought was going to come in. Same on the state level and on and on.

Secondly, we lose since the federal government will be paying for those federally insured losses. We, as taxpayers thus pay again.

JP Morgan loses nothing.

If we have personally invested in JP Morgan CD's or the like or have checking accounts with Chase our fees will likely go up in the future.

Chase will likely take care of its shareholders first and depositors (you and me not, at all)

Federally insured means that our taxes will go up in the future to take care of this JP Morgan created loss, not to mention an increase in the national debt this will likely mean to cover the government loss.

JP Morgan will likely now simply go to the Federal Reserve and get more of that free money (1%) rate and get to gamble again with these new funds to replace the ones they lost. (We pay in increased inflation down the road and to boot will get blamed for spending to much because we can't pay the higher prices in a flat wage era. Ouch.)

JP can cover even this loss with other bets they have made that the American economy will go south. This called 'shorting' and they can do this even with their own stock. And they can make the stock go down by their own actions, and they can make even more money that the 3 billion loss. (This happened in 2008 and continues. Reinsurance schemes such as those with AIG are an example where the American taxpayer was forced to pay for most of the bank losses of year, over and above the bail out. How much? At least a trillion probably six billion counting the Federal Reserve layouts.

For example, if Jami Dimon found out a week ago that his company had a 3 billion dollar loss, he could anonymously instruct a third party to sell JP Morgan stock and make billions that way.

This was done in the 2008 debacle and is still being done.

This is at the heart of the derivative scandal and the theft it represents of the assets of the American middle class.

Finally, in order to make up the loss JP Morgan will likely not pay or will slow pay some of their own creditors, including European banks or their subsidiaries or not make loans some of those banks were counting on.

Now Dimon will get away with this and is encouraged to do this because the banks years ago went to Congress and got laws which now make legal for banks to gamble with yours and my money.

That is why nobody goes to jail. See my blog on the Corzine case above.

Now the FBI, l the Federal Reserve have announced 'investigations' and the Congressional Finance and Banking Committee has hinted it might hold hearings.

I would venture to bet absolutely nothing will come of these hearings because the crookedness of what Dimon did has been made legal.

And to add insult to injury Dimon, as Chair of the Board, will launch an internal investigation of himself as CEO.

Now multiply this by the 50% of Wall Street banks that have this exact same configuration and have smaller losses which taken together is a huge number. What are the real losses each year piling up this way?

Trillions each year and on balance sheets around the world, the banks have over a quadrillion in worthless derivative debt.

This is ridiculous.

More later as the details emerge.

But note first that with the mounting student loan debt and the quadrillion above massive default is inevitable, or at least restructuring-and that would not necessarily be a bad thing. Argentina, Iceland, and Greece have shown the way.

What all this will look like this year? .

That tomorrow.

3/17/12

A hard slog in the foothills of debt - FT.com - Columnists http: //on.ft.com/AhFgqs

I will fix the above link at some later point. The financial times now does not allow links. Will have to figure something out.


Looks like the UK is in trouble.

http: //www.nytimes.com/2012/03/16/business/global/fitc h-warns-uk-of-possible-downgrade.html? src=recg



3/24/12
Some more details on what is the likely impact of the now current Greek default.

So if 70 percent of the Greek debt holders are not not going to get paid, what does it mean world wide. See link below:

http: //www.businessinsider.com/leaked-memo-reveals-wha t-a-greek-default-will-cost-europe-and-the-world- 2012-3/first-greece-would-fail-to-honor-payments- on-its-368-billion-486-billion-in-debt-obligation s-that-would-probably-collapse-its-banking-system -1



Meantime the Corzine 'investigation' goes on. The outcome is predictable-the taxayers will get ripped off and the customers don't really get their money back. All we get is a better sense of who ran off with the funds.
http: //m.cbsnews.com/storysynopsis.rbml? pageType=moneywatch&catid=57368218&feed_id=76&vid eofeed=43

http: //www.cbsnews.com/8301-505123_162-57403660/report -corzine-ordered-$200-million-transfer/

Meantime the role of Bank of America in the financial crisis in 2008 and continuing is documented below.

http: //www.democracynow.org/2012/3/22/too_crooked_to_f ail_matt_taibbi

5/17/12

JP Morgan is in the news announcing losses in the neighborhood of 3 billion dollars.The American press, in this case the NY Times, offers us the soothing response that this is not so bad and that everything will be ok.

Everything will not be ok for the following reasons, moreover, we want to know what this means, and who wins and who loses.

See the article below first and then we discuss it and its relationship to the European Debt crisis.

http: //dealbook.nytimes.com/2012/05/16/jpmorgans-tradi ng-loss-is-said-to-rise-at-least-50/

To quote from the article:


'The Federal Reserve is examining the scope of the growing losses and the original bet, along with whether JPMorgan's chief investment office took risks that were inappropriate for a federally insured depository institution, according to several people with knowledge of the examination. They spoke on the condition of anonymity because the investigation is still under way.

The overall health of the bank remains strong, even with the additional losses, and JPMorgan has been able to increase its stock dividend faster than its rivals because of stronger earnings and a more solid capital buffer.'

Now the huge loss in this is treated as minor and the health of the company is described 'remains strong.' (The NY Times reflects in its coverage the fact that the finance industry is so strong in NY that the Times slants the news when it covers the Jamie Dimon's of the world)

Now how, you ask, can a bank lose this much money and still remain strong?

Here how:

First, it was not JP Morgan's money that was lost, it was yours and my money because JP Morgan-Chase has federally-insured deposit accounts which means your and my bank accounts which it used for these huge gambles.

We actually pay at least six times for the 3 billion JP Morgan loss.

We lose if our 401 savings are deposited with Chase by our employers and labor unions, states and city governments. They all lose and, therefore, our 401k goes south, our city taxes will likely go up or there will be layoffs because those institutions will not be receiving income for these 'investments' they thought was going to come in. Same on the state level and on and on.

Secondly, we lose since the federal government will be paying for those federally insured losses. We, as taxpayers thus pay again.

JP Morgan loses nothing.

If we have personally invested in JP Morgan CD's or the like or have checking accounts with Chase our fees will likely go up in the future.

Chase will likely take care of its shareholders first and depositors (you and me not, at all)

Federally insured means that our taxes will go up in the future to take care of this JP Morgan created loss, not to mention an increase in the national debt this will likely mean to cover the government loss.

JP Morgan will likely now simply go to the Federal Reserve and get more of that free money (1%) rate and get to gamble again with these new funds to replace the ones they lost. (We pay in increased inflation down the road and to boot will get blamed for spending to much because we can't pay the higher prices in a flat wage era. Ouch.)

JP can cover even this loss with other bets they have made that the American economy will go south. This called 'shorting' and they can do this even with their own stock. And they can make the stock go down by their own actions, and they can make even more money that the 3 billion loss. (This happened in 2008 and continues. Reinsurance schemes such as those with AIG are an example where the American taxpayer was forced to pay for most of the bank losses of year, over and above the bail out. How much? At least a trillion probably six trillion-counting the Federal Reserve layouts.

For example, if Jamie Dimon found out a week ago that his company had a 3 (now 5 billion) billion dollar loss, he could anonymously instruct a third party to sell JP Morgan stock and make billions that way.

This was done in the 2008 debacle and is still being done-even in this \JP Morgan situation. We wan to see who was shorting JP before the announcement and made money.

This is at the heart of the derivative scandal and the theft it represents of the assets of the American middle class.

Finally, in order to make up the loss JP Morgan will likely not pay or will slow pay some of their own creditors, including European banks or their subsidiaries or not make loans some of those banks were counting on.

Now Dimon will get away with this and is encouraged to do this because the banks years ago went to Congress and got laws which now make legal for banks to gamble with yours and my money.

That is why nobody goes to jail. See my blog on the Corzine case above.

Now the FBI, l the Federal Reserve have announced 'investigations' and the Congressional Finance and Banking Committee has hinted it might hold hearings.

I would venture to bet absolutely nothing will come of these hearings because the crookedness of what Dimon did has been made legal.

And to add insult to injury Dimon, as Chair of the Board, will launch an internal investigation of himself as CEO.

Now multiply this by the 50% of Wall Street banks that have this exact same configuration and have smaller losses which taken together is a huge number. What are the real losses each year piling up this way?

Trillions each year and on balance sheets around the world, the banks have over a quadrillion in worthless derivative debt.

This is ridiculous.

For a scathing analysis of this see the Keiser Report below.

http: //www.youtube.com/watch? feature=player_detailpage&v=Y2VhkQe3gQ0

Mo re later as the details emerge.

But note first that, with the mounting student loan debt, and the quardrillion in derivative debt above, it is clear massive defaults are inevitable- or at least restructuring-and that would not necessarily be a bad thing. Argentina, Iceland, and Greece have shown the way to default and still survive. But in such a scenario, who losses and who wins? Losers, states, cities,401k people, in short everyone but wall street.

On Greek situation:

http: //www.bbc.co.uk/news/world-europe-18101434

My prediction: Greece will exit the Eurozone.

Meantime the markets apparently agree and have dropped world wide:

Last Updated at 17: 19 ET 5/17/12
Market index Current value Trend Variation % variation
Dow Jones 12442.49 Down -156.06 -1.24%
Nasdaq 2813.69 Down -60.35 -2.10%
S&P 500 1304.86 Down -19.94 -1.51%
FTSE 100 5338.38 Down -66.87 -1.24%
Dax 6308.96 Down -75.30 -1.18%
BBC Global 30 5766.81 Down -5.58 -0.10%

Marketwatch ticker

Source:
http: //www.bbc.co.uk/news/business-18108716#sa-ns_mcha nnel=rss&ns_source=PublicRSS20-sa

What does this mean and what will this year bring?

That tomorow.

Meantime see this video statement by Dimon on the health of JP after getting 25 billion in tax money in 2009, promising to 'overcome weaknesses' exposed in the 2008 financial meltdown. That promise apparently was not honored and things were not fixed. See the other CEO's the other giant banks as well, all promising to fix things.

Makes you laugh and then you cry because the money they are talking about is our money, both the bailout and the losses, were all our money.

Dimon comes on at 33.04 minutes into the meeting. But it is interesting to hear them all state how much of our money they got. This does not even count the sperate monies trillions they got from themselves sitting on the Boards of The Federal Reserve. (They all sit on the Board of the Federal Reserve. Self-dealing. You bet. See video.

http: //www.c-spanvideo.org/program/Fundsby

5/18 12
Tax evasions by Americans will increase this years. Millionaire tax evasion scams have been put under pressure by new Americans laws which severely punish banks abroad for sheltering such fund transfers. Some Americans have sought to evade these new laws by denouncing their American citizen ships. See article below:

http: //mobile.businessweek.com/articles/2012-05-17/why -foreign-banks-are-shunning-american-millionaires

Other interesting articles:

http: //www.opensecrets.org/news/2012/05/lawmakers-inve sted-in-jpmorgan-chase.html

http: //mobile.businessweek.com/articles/2012-05-17/why -foreign-banks-are-shunning-american-millionaires

http: //mobile.businessweek.com/articles/2012-05-17/how -jpmorgan-lost-2-billion-without-really-trying

http: //abcnews.go.com/blogs/politics/2012/05/obama-has -over-500000-in-jpmorgan-chase-account/

How will gold and silver be affected by all this?

http: //www.youtube.com/watch? v=WJHyFTRJrxQ&feature=youtube_gdata_player

http: //www.youtube.com/watch? feature=player_detailpage&v=ZOZYkyQx4uw

Wh at about runs on European banks?
https: //mail.google.com/mail/h/15xb9sk73vlsz/? &v=c&th=13766bf3879b284e

http: //www.youtube.com/watch? feature=player_detailpage&list=ULFD-Tdxj-oCA&v=FD -Tdxj-oCA

http: //www.nationofchange.org/european-stabilization-m echanism-or-how-goldman-vampire-squid-just-captur ed-europe-1337519246

For more:

See four PBS videos on how Wall Street ripped off small town America, pensioners, and small towns in America. JP Morgan is covered here as well.

http: //video.pbs.org/video/2229573868

5/20/12
But what if Greece left the Euro?

Click on the boxes in this article to get the copy to become visible.

http: //www.bbc.co.uk/news/business-18074674#sa-ns_mcha nnel=rss&ns_source=PublicRSS20-sa

What kind of shape are European banks in?

http: //www.bbc.co.uk/news/uk-politics-18137239#sa-ns_m channel=rss&ns_source=PublicRSS20-sa

http: //www.youtube.com/watch? feature=player_detailpage&v=SnSDjZVA4yU


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Poem Submitted: Thursday, May 17, 2012

Poem Edited: Sunday, May 20, 2012


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