The fall of the house of JPM?...............from Rico

Last night CEO Dimon (affectionately known as "Shark Boy") said JPM was "...facing massive losses - legal losses of $4.2 billion were reasonably possible..." demonstrating how you can vaporize the GDP of a small nation in just a few weeks by following the Corzine/MF Global strategy and 'hedging' risk.

Coincidence 1. Skipping all the moving parts and technobabble, this morning a number of financial sources are dutifully using $2 billion in reporting JPM's losses. Huh?
- The WSJ, Bloomberg, Reuters, Barron's, the Financial Times, MSN all report this number as gospel. Look again at the Dimon quote above.
- Only Tyler Durden of Zero Hedge uses $3 billion, while Reggie Middleton smelled a rat back in 2008 and clearly saw this one coming.

Just a thought. If the loss on your derivative 'hedges' is not being cancelled out by gains in your initial portfolios then, by definition, you are NOT hedging risk. You are speculating.
- JPM was not hedging risk, but gambling.

Consider the above 'coincidence' in this context: JPM's derivative exposure (34.5%) is worse than Bear Stearns (17.0%) and Lehman's (9.2%) before they failed. Is the Financial Media making a concerted effort to not scare the Muppets?
- After all, many have already moved their assets into an ABCD position (anything bankers cannot destroy).

Coincidence 2. How many weeks ago did JPM's Blythe Masters (lovingly known as Lava Girl) give an extremely rare, staged, and carefully orchestrated FTV interview explaining that JPM's hedged positions were to protect their clients from risk, and disingenuously saying they were 'honest' at JPM? Think they 'knew' something was looming large and they were positioning to deflect it?
Just wait until their commodities derivatives book blows up next!
- Since then we have seen the paper price suppression of commodities (Gold & Silver) operating at full tilt as JPM attempts to cover their monstrously HUGE concentrated 'short' positions at depressed pricing.

And, while JPM is not alone in this (I think they will have company) they may be the first, if you do not consider MF Global.
- This may very well lead to the 'fall' of the sovereign nation known as JP Morgan Chase.