This week opened with reports from CNN and others, that, lo and behold, losses at JP Morgan, once king of the derivatives casino, are not the $2 billion admitted on May 10, but are now running in the $6-8 billion range, and going up daily. Given JP Morgan's reported $100 billion holdings in casino paper, are you dumb enough to believe those figures? Obama's favorite banker, JP Morgan chief Jamie Dimon refused to say how big the loss may get, when asked at a Deutsche Bank conference this Monday. And other participants in that conference admitted to Bloomberg TV that "if we end up with a catastrophe in Europe in the short turn," Morgan's losses are going to soar.
If? With European leaders and President Obama still grimly determined to escalate the monetarism which blew up the system in the first place, there is no "if." Money continues to flee from the European banks, and cannot be expected to long remain in what the Financial Times dubbed Monday "a slow motion bank run" (or "bank jog," in the words of another financial idiot). President Obama and France's President Hollande joined the chorus demanding European banks be "recapitalized;" that is, printing "unimaginable amounts of money" London is demanding to bail them out.
Yet another European summit has been called for this Wednesday to deal with the crisis, with no prospective that anymore will come out of this than the G-8 meeting. Hollande says he's going to propose eurobonds be issued to finance the needed bailouts; Germany's Deputy Finance Minister Steffen Kampeter reiterated the Germans have no intention of going along.
So, preparations are underway, no longer quite so behind the scenes, for Greece's exit from the Euro, in short order. German media (e.g. Focus magazine, primetime television programs) began preparing the German population for this inevitability as the week opened; El-Erian, head of the PIMCO bondholding behemoth, told Bloomberg TV on Monday "its probably inevitable and therefore we should plan for it;" London's Royal United Services figure, Dr. Jonathan Eyal, added his bit to the obituaries being written for the Euro.
But Morgan's Dimon said Monday that "a Greece default is not the problem, Greece leaving the euro is the problem".
Isn't it time to listen to LaRouche?