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Things have been quiet since Ben did his talking. But, you know that there is turmoil of several sorts going on. For one, a regional bank admitted that it sold mortgage-backed bonds for a big loss (millions). Better bite the bullet and let someone else have the 'toxic' asset, I suppose. And, the markets have been up and down, mostly due to Ben's largess and gaming. That whole scene (Chimera that it is) needs some toning down.
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Earlier, Jamie bragged about being the last man standing. That raised some ire. Then, Jamie (see Jamie Posts) did an 'aw shucks' (see Remarks 01/16/2012) interview which seemed to brighten his image a little. At the time, was he looking for Timmy's job so he had to present other than his hot-shot, make-money-anyway-possible demeanor?
Then, today he steps up with some news. The tone was that they were going to look into this little problem of losing some money - heads will roll, he seems to imply. Jamie, why not use this as an opportunity to make Chase exemplary? Become the first bank to do so? Ah, bankers, class acts that they are.
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| Jamie and his peers at the rogue table |
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Let's look back at Jamie's bank and its history from another perspective. This is brief, but we need to deconstruct these modern (flim-flam) notions that are based upon an overly-confident attitude that we, through mathematics, science, and engineering (ah yes, STEM will save the world!), have made ourselves the master of the universe. Oh wait, it's only the finance types in their silly world, laying havoc for the rest, who think that?
Firstly, Jamie's bank (part of it) was named for a cousin-in-law (Salmon P. Chase). Wonder what the old guy would think of these modern shenanigans. Jamie talk his principles. What exactly are these (be first to the trough?, etc.)? Does he think that he could demonstrate these via Chase such that we can all marvel and exclaim Chase to be the paragon of banking virtue (yes, people, we need to run our money with monks, people of simple living, and the like -- betting, such as this news indicates, is adolescent -- wait, infantile is more appropriate -- did we not just clean up their dirty diapers?)?
Then, let's pick another old guy, cousin-in-law (George Peabody) who got the other part started. His piece of a common effort was taken over by J.P. Morgan after George retired. Of course, the Peabody connection went away (name, and all), but what else would we expect?
Again, what would George, who was beloved at death, think of the machinations that are allowed these days? And, this type of thing by what is, essentially, a utility (yeah, Jamie is the head of a service that is to provide for the commonweal)? Of course, even those utility types are acting up nowadays, too.
Both of these guys descend from early entrants to these shores. Are the dreams of their (our) ancestors (example) being fulfilled with the gaming of the chimera? Oh, some say, if we didn't, others would. Bogus argument, folks. American, the dream? Remember?
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Again, why not make Chase the example of how banking ought to be done? These new instruments need to be under control and less opaque. Chase ought to help define the proper use (implying that there is an improper -- which is the current mode).
Jamie's little explanation hints at the casino aspect. Yes, hedges (on whose behalf?) gone awry. Where, pray tell, is the science of finance? Engineering? Looks more to be ad-hoc, playground activity albeit with the livelihoods, and savings, of those who most need a solid utility function (banking as infrastructure - not a source for exorbitant incomes leading to mansions, et al.).
Remarks:
12/13/2012 -- Don't know how long this page will be there, Daily Ticker. But, when I looked, 69% had said 'no' (hurt rather than helped) as to whether Ben has helped.
11/15/2012 -- SumZero, and more.
05/22/2012 -- We can let Jamie off the hook a little and for awhile.
05/14/2012 -- From several reports, it seems that Jamie is a talker, as in pulls the wool over "populist's" eyes. Too, he probably back-slaps, as well. That is one characteristic trait needed for those who would be 'kings' as we see with the CEOs. And, there was justification for the idiocy. Ah, they wanted to get returns greater than the cost of capital. Idiots. Ben is giving them almost free money. So, that's no excuse. As well, any take larger than a reasonable amount (already discussed and to be discussed further) is onerous to the 'populace' over whose eyes the wool has been pulled. 'near zero' is what it has been called here.
05/11/2012 -- Supposedly, the futures show some impact from the revelation. Yet, the big bucks (hedge funds, et al -- yes, Mitt needs to awaken to the issues) want opaque (they seem to love lemons - except for when these come back to bite, like this) dealings, and more. Cover for shenanigans if truth were known (yes, fictitious - thank you, Karl -- too, Warren steps warily around these stupidities).
Modified: 01/02/2016
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