gkafantaris Wrote:
May 14, 2012 2:18 PM
The derivative hedging game played by JPMorgan Chase is no different than that played by AIG in 2008. Yet, Jamie Dimon tells us that Chase had merely “made a terrible, egregious mistake.” He might as well have said that Chase was wrong in raising in a game of poker, when it would have been more prudent and folded. But why was Chase busy gambling in the first place -- right after our economic meltdown, and while fighting government regulation? One answer is because Chase could bear the gambling losses. That’s right. With $2 trillion at hand, Chase can yawn when $3 billion goes down the tube. Nonetheless, Dimon tells us that he sees no problem with the government dismantling big failing banks. This is nice to know because the governmen