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Old 04-16-2009, 10:42 AM
 
Location: South FL
5,484 posts, read 6,862,481 times
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NEW YORK - JPMorgan Chase said Thursday it earned $2.14 billion for the first quarter, thanks to a boost in trading activity and deposits. The profit was 10 percent lower than last year, but better than expected.

JPMorgan has not posted a quarterly loss since the financial crisis began.

Like other banks, JPMorgan's loans are still seeing defaults increase. Credit costs amounted to $10 billion, JPMorgan said.

JPMorgan posts better-than-expected profit - Earnings- msnbc.com
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Old 04-16-2009, 12:55 PM
 
3,283 posts, read 4,910,166 times
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yup, govt attempts to re-inflate the bubble economy seem to be taking hold somewhat. i don't know. we've had rising unemployment, diminishing profits along with a maxed out population. the only thing i can think of is that the govt is allowing banks to present far rosier picture. whether this is misleading is another question.
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Old 04-16-2009, 03:23 PM
 
Location: Great State of Texas
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They changed accounting rules and the banks were allowed to use the changed rules for their 1Q numbers. Mark-to-market became mark-to-magic. Haven't you noticed that any bank that was bleeding losses in December is magically reporting profits yet consumers can't get loans.

How are these banks making money when the very people they make money off of can't get loans (mtg, cc, car loans, etc) ?
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Old 04-16-2009, 03:48 PM
 
Location: Chino, CA
1,458 posts, read 3,100,104 times
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Quote:
Originally Posted by HappyTexan View Post
They changed accounting rules and the banks were allowed to use the changed rules for their 1Q numbers. Mark-to-market became mark-to-magic. Haven't you noticed that any bank that was bleeding losses in December is magically reporting profits yet consumers can't get loans.

How are these banks making money when the very people they make money off of can't get loans (mtg, cc, car loans, etc) ?
Since the banks were able to change the accounting rules to "mark-to-magic" (nice term btw), I guess I should be able to get my home loan refinanced since based on "mark-to-magic" rules, my home has a higher value than the market and I should be able to refinance into the new lower rates.

Love the hypocracy and the dual standards inherent in the system and I'm continually amazed at how much clout these corporations have over the entire system.
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Old 04-16-2009, 04:10 PM
 
Location: Great State of Texas
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chuck22b..I can't take credit for that "mark-to-magic". I read it somewhere and thought the same as you..it is what they are doing.

I am amazed too. It's now becoming obvious who is running America and calling the shots.
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Old 04-16-2009, 04:31 PM
 
3,283 posts, read 4,910,166 times
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Quote:
Originally Posted by HappyTexan View Post
yet consumers can't get loans.

How are these banks making money when the very people they make money off of can't get loans (mtg, cc, car loans, etc) ?

i think that this is a major fallacy. banks never stopped lending they just became more careful about who they loaned money to. to be fair to them, they have been behaving prudently for the first time in decades!

the problem though is that just loaning money to those who are a lower credit risk will not provide enough economic stimulus to pull us back into bull market territory. once again we need to find a way to make money available to those who are a poor credit risk. this was the strategy followed by bush and now obama!

what puzzles me is how this new administration is going to apply this double standard? on the one hand they are going to pass some orwellian regulations to control the financial industry. on the other they are going to contradict their own regulations by encouraging banks to lend more. $50 goes to the next reporter who asks barack that question!
(i've a sneaky suspicion that the fifty is safe in my pocket, lol
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Old 04-16-2009, 04:45 PM
 
Location: Chino, CA
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Quote:
Originally Posted by 58robbo View Post
i think that this is a major fallacy. banks never stopped lending they just became more careful about who they loaned money to. to be fair to them, they have been behaving prudently for the first time in decades!

the problem though is that just loaning money to those who are a lower credit risk will not provide enough economic stimulus to pull us back into bull market territory. once again we need to find a way to make money available to those who are a poor credit risk. this was the strategy followed by bush and now obama!

what puzzles me is how this new administration is going to apply this double standard? on the one hand they are going to pass some orwellian regulations to control the financial industry. on the other they are going to contradict their own regulations by encouraging banks to lend more. $50 goes to the next reporter who asks barack that question!
(i've a sneaky suspicion that the fifty is safe in my pocket, lol
Isn't that the same problem they had prior to the mass sub-prime lending fiasco? Basically, not enough credit-worthy customers... or customers didn't have enough income? Americans as an aggregate are broke.

They can do two things... lower the requirements... and resume lending to credit-unworthy customers to create another bubble.... or ... price levels have to fall and incomes rise or some sort of balance there forth that can be sustainable.

Choice A is obviously easier. Choice B would require Americans to change (ie, re-educate/train, alter behaviors), and new policies would have to be implemented or old policies enforced to ensure fair global trade standards, a crack down on currency manipulation, and corporate labor arbitrage.

I think they're moving towards Choice A. It's easier and would benefit the status quo. But are Americans going to fall for it? From what I can tell, we will.

-chuck22b

Last edited by chuck22b; 04-16-2009 at 04:53 PM..
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Old 04-16-2009, 05:07 PM
 
3,283 posts, read 4,910,166 times
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Originally Posted by chuck22b View Post
new policies would have to be implemented or old policies enforced to ensure fair global trade standards, a crack down on currency manipulation, and corporate labor arbitrage.

-chuck22b

i agree with you but the crackpot in me gets all riled up when you mix the word global with words like standards, enforcement, currency, governance etc.

there is quite a simple solution to currency manipulation and that would be for us to forfeit the dollar as the 'de facto' world reserve currency. imo our currency is forced on most of the world and this creates an environment where countries like china need to ensure that they maintain a mountain of our paper.
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Old 04-16-2009, 05:42 PM
 
Location: Chino, CA
1,458 posts, read 3,100,104 times
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Quote:
Originally Posted by 58robbo View Post
i agree with you but the crackpot in me gets all riled up when you mix the word global with words like standards, enforcement, currency, governance etc.

there is quite a simple solution to currency manipulation and that would be for us to forfeit the dollar as the 'de facto' world reserve currency. imo our currency is forced on most of the world and this creates an environment where countries like china need to ensure that they maintain a mountain of our paper.
hehe, I agree. That would actually show better result than having some regulating body oversight other countries with essentially No teeth.

But, as a result, America would lose substantial pull on other nations, and fall substantially from grace. The breadth and depth of dollars allows America to have some political clout over other nations because we control dollar policy.... but then again, has that clout become our Achilles heel? Foreigners have so much of our junk that they now actually control US?

I'm all for the US Dollar being pulled from being the de facto currency but that would definitely upset the status quo, and who would be administrating the global reserve currency?

-chuck22b
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Old 04-16-2009, 06:59 PM
 
12,869 posts, read 13,953,294 times
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Quote:
Originally Posted by 58robbo View Post
yup, govt attempts to re-inflate the bubble economy seem to be taking hold somewhat. i don't know. we've had rising unemployment, diminishing profits along with a maxed out population. the only thing i can think of is that the govt is allowing banks to present far rosier picture. whether this is misleading is another question.
as long as the banks are allowed to mark to model their toxic assets, they will continue to be able to paint a rosy picture. that doesn't negate the fact that they still have a huge hole in their balance sheets. if the recession/depression keeps dragging on that hole will keep getting bigger and bigger. T2 partners predicted the economic crisis before it happened and their most recent report now predicts the total amount of losses will be between 3 and 4 trillion dollars and currently the banks only have reserve for a little over 1 trillion dollars in losses.
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