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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (108908)	7/15/2010 4:21:10 AM
From: dealmakr	1 Recommendation Read Replies (1) \| Respond to of 110194

"I turned this week to Satyajit Das, an independent credit analyst in Australia. Though his vantage point is half a world away, Das is frequently sought out as a consultant by central bankers, government officials and fund managers for his unconflicted insights and his unusually clear explanation of the dense pathways of debt and its derivatives." "He suggests we not be fooled by recent earnings reports or government stats, pointing to U.S. bank earnings as especially inaccurate. JP Morgan has a balance sheet of $1 trillion and can borrow at essentially zero, he notes. So if they just go out and buy 10-year bonds at 3% they should be able to earn $30 billion a year. Yet the bank announced a profit of $3.3 billion last quarter." For a guy that is a derivative specialist, how can he say that JPM has a trillion dollar balance sheet for the purpose of being able to borrow that kind of dough. yahoo.brand.edgar-online.com I don't think that you can count the liability side too if you want to go to the borrowing window as you can't borrow against what you have already borrowed. dealmakr