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Wisconsin Wit

Saturday, July 14, 2012

"Bear Trader" Writes: What's in their coffee on Wall Street?

On 7/13/12, The Evansville Observer wrote: > Bear Trader > On the Squak on the Street this morn prior to the opening, Jim Cramer > commented on the announcement by JPMOrgan that their loss was 4.4 billion up > from two, that when one considered that the final net PLUS the losses was a > huge number if applied by the multiple, then the valuation of the stock was > much higher....huh? thus he was positive on the stock for the future. > Lets all not discount our losses and apply the multiple and then be wildly > positive hUH? what is the new math..or is it new meth? > > Bear Trader Answers: As I said earlier Wall Street is totally hot to Buy, Buy, Buy. I didn't use those words, exactly, as I recall. I recall saying they acted like manic bipolars off their meds. The problem is that the world central banks including the Federal Reserve have printed so much money since 2008 ($15 Trillion in 2008 and 2009, as much as the US GDP) that Wall Street is awash with cash, drowning in it, and the money is burning holes in every pocket in the financial world. Even JPMorgan-Chase is throwing money around like a coke head. Dimon even says their $5,000,000,000 trading loss don't mean nothing. Did you know that Greenberg of Bear Stearns bragged about his coke use to an underling once, and showed him his stash? About 60 or 100 grams, it appears, costing several thousand dollars. Who do you think bought, buys, all that coke up in Harlem? It is not local residents as they don't have enough money. It is easy to snort $1000 a day worth (assuming you have the cash). Too bad I can't borrow a few trillion at 0.5% and get 0.6% from soon maturing Treasuries. I would get, for each trillion dollars borrowed, ten basis points per year, or one billion dollars per year. Not bad for no work and no risk, eh? Just call me Mr. TARP.

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