May 11, 2012
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JPMorgan Chase, “one of the best-run banks” on Wall Street, blows $2 billion on high-risk derivatives. As a result of the loss, Standard & Poor’s, — reacting after the implosion — again, will downgrade the company.
CEO Jamie Dimon, who supports Michele Bachmann’s bill to repeal financial regulations, says “Just because we’re stupid doesn’t mean everybody else was.” However, other bankers are even dumber than Jamie Dimon.
And the big gambling loss by JP Morgan raises tough questions for the Obama Administration — why didn’t Obama’s new financial reforms catch that? Could it possibly be due to Republican’s defunding the regulators? Maybe that’s what we should do because Eric Cantor says “That’s what the American people are expecting”! And we all know Cantor is an “all-knowing” wizard because he’s told us so often enough.
However, Commissioner Bart Chilton of the U.S. Commodity Futures Trading Commission is the real all-knowing wizard. He says “We’re chumps for believing bankers”. I think most Americans would agree with him.
Never underestimate the difficulty of changing false beliefs [with] facts.
Economist Henry Rosovsky