Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 1 October 2012 [View all]Po_d Mainiac
(4,183 posts)The JP Morgan (JPM) trading blunder could result in a $100 billion loss, a contagion of its massive portfolio, and even the wipeout of its entire asset base. Even worse, these extremely risky and potentially-illegal actions on behalf of the CIO office and the "London Whale" could be the unexpected "shock" that breaks the market, derails the Fed's huge monetary stimulus, and sends us back into a global recession.
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This event is JP Morgan's huge trading mistake. The massive losses that were racked up starting in April and May 2012 are by no means over. What has been represented by JP Morgan as a trading mistake and "hedging" strategy with an initial estimated loss of $2 billion, was really a leveraged and speculative bet that could soon infect JP Morgan's entire portfolio and result in losses of $100 billion.
http://seekingalpha.com/article/893711-jpmorgan-loss-could-be-next-shock-event?source=email_rt_article_title&ifp=0
Just hype, or will we get to see the Senate Finance Committee wear kneepads for JD's next appearance? Again.