General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWere these JP Morgan trades two-sided?
Did someone else (in aggregate) get the $2 billion or did it go to money heaven?
("Money heaven is where imaginary money goes when stocks decline. Say CorpCo has 1 million shares of stock outstanding. The last guy who bought a share paid $10. So the company is "worth" $10 million. But if you dumped a million shares on the market they would sell for a lot less than $10 each, so the $10 million market cap is not real money at the time. When the stock drops t $5/share then $5 million of value has gone to money heaven, because nobody anywhere got the money.)
If a bank lost $2 billion because consumers defaulted on $2 billion of credit card debt that would be de facto stimulus, not disaster.
But if a bank losses $2 billion in some derivative scam where the $2 billion is "value," and was never real money, it's different.
Put betting $2 billion in cash and losing is a two-sided transaction.
Did JPM actually put $2 billion of money somewhere and then have it evaporate? And if so, who got it? (I hope it was me... haven't checked the mail.)
dems_rightnow
(1,956 posts)..... somebody who sold them the investments got the billions.
cthulu2016
(10,960 posts)BumRushDaShow
(129,883 posts)(I keep waiting for that shoe to maybe drop... ))