Letters to the editor, May 18
Hernando TodayHold J.P Morgan accountable
Published: May 18, 2012
Published: May 18, 2012
Jaime Dimon and Donald Trump are liars. Everyone involved at giving kudos to Mr. Dimon for being so forthright and honest for stepping forward and taking it on the chin, early on, and admitting his culpability for making a simple mistake that any and all business persons could easily fall victim to, are liars too!
Here's what really happened, J.P. Morgan and Chase foolishly invested more assets than they were willing to lose in the Eurozone economies, most notably repackaged mortgage debt. You know, the very same investments that brought the U.S. economy to its knees and lead to the housing and economic crisis beginning in the fall of 2007!
When it became obvious that they were going to incur such losses they positioned their assets into a non-liquid vehicle, and called it a hedge fund. But hedging is positioning your money where it's safer than it was before. It wasn't and Jaime Dimon knew it, the only hedge he had was hoping nobody would notice. But somebody did take notice, and with it being non-liquid, other investors were able to leverage the account and drain it dry, right out from under J.P. Morgan and Chase.
It was a gamble that Mr. Dimon lost, you see Jamie Dimon was like a vacationer on a beautiful island resort, enjoying margarita, the sunshine and surf, while the money was rolling in. He enjoyed it so well that even though weather reports indicated a hurricane was bearing down on the island, he simply ignored it.
Long after the last ship had been evacuated, the storm clouds began to gather, it was then that Jamie Dimon finally decided he wanted to get off the island; he'd have to swim for it. He avoided the storm but the sharks got him. He literally threw himself into the shark tank; another analogy also applies, He went from the frying pan into the fire!
Much has been made of his immediate release of information to Financial Market Watch and the press for his mistakes and for not trying to cover-up the mess he had made. When in reality he just wanted to go public early rather than waiting until all the losses were tallied.
The fund had lost $2.3 billion over the course 6 weeks, while 7 more weeks still remain until the assets finally become available again. That means J.P. Morgan and Chase can only sit and watch as they and their investors are bled dry and will ultimately suffer an estimated $5 billion loss!
So much for Jaime Dimon's integrity and what about his acceptance of responsibility for making the mistake? Why is it he still has a job, while so many of his officers have been forced to resign?
I'll tell you why, because without regulations these wealthy bankers will continue to play casino with your money. Before Glass-Steagal was repealed and banks holdings were deregulated, they were required to set aside enough money to guarantee depositors up to $250,000 per account in "commercial banks." They were not allowed to risk the depositors money and this "commercial money" was not allowed to mix with their "investment monies."
How it works today; they are allowed to risk freely the monies that would otherwise guarantee your bank account. In so doing, they are playing casino with your money; if they win they get big fat bonuses for making a profitable trade. If they lose they get bailed out with public tax dollars, which by the way, is also your money!
So much for deregulation and fiscal responsibility! Wake up America, we need to reinstate Glass-Steagal or pass Simpson-Bowles legislation.
Ignoring our freedoms
UAV'S (unmanned aerial vehicles), commonly known as spy drones, are coming to a town near you. These domestic spy drones can fly silently over your home or place of business and you will never know it.
President Obama signed the FAA Reauthorization Act under which the FAA is to integrate drones into the national air space. The FAA has given Wright-Patterson Air Force Base the go-ahead to begin testing UAV's at an air park in southern Ohio. In his 2012 "State of the State" address, Ohio Gov. John Kasich said, "The unmanned drone program will help improve the state's economic viability."
But wait – what about the Constitution, the Bill of Rights, doesn't that protect us?
Amendment IV of the Constitution states, "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
Our government chooses to ignore our Bill of Rights. Our freedoms are being surreptitiously stripped away one by one. These attacks on our personal freedoms are buried in thousands of pages of legislation and concealed in mind-numbing bureaucratic mumble jumble. One need only look to the National Health Care Bill to see that our Government knows what is best for us, our health and well being, and is the ultimate decision maker – not us – not our doctors.
The myriad bills, acts, regulations, and Executive Orders overwhelm us with their complexity. At first, there is alarm but eventually the comfortable, well worn slipper of complacency returns. But an unmanned drone flying over your home – that is another matter entirely. Translation: With its thermal imaging capability, it can see you stretched out in your Lazy Boy recliner.
In 1834, Daniel Webster stated, "God grants liberty only to those who love it and are always ready to guard and defend it." We are a long, long way from liberty.