|Re: JP Morgan Chase Execs Vaporize $2B (941627)|
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Re: JP Morgan Chase Execs Vaporize $2B
The numbers I've seen for JPM Chase are that they have $360 Billion in outstanding credit derivative "bets", but only $17 Billion in actual small business loans outstanding.
The Fed keeps interest rates artificially low so that the economy can get re-started/kick-started/jump-started. The banks borrow at these ridiculously low rates, but instead of then re-loaning the money out they make all kinds of derivative bets. What is the point of a low Fed funds rate if the money never actually makes it to the economy?
The big problem is (has been, and continues to be) that President Obama's economic team (much like the Bush team before them) believes that the country's economic health and the economic health of Wall Street and particularly the large banks are one and the same. They are not the same -- and in many cases are completely divergent.