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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (261094)	7/15/2010 1:49:27 PM
From: RetiredNow	Read Replies (2) \| Respond to of 306849

yeah, we've sliced and diced the JPM earnings report. It's about as hollow as it comes. They bumped up earnings by reducing bad debt reserves, which they accomplished by changing accounting assumptions on a hope and a prayer that the economy is improving. This is just more progress based on fumes. The reality of the situation is this. JPM has $1.9 trillion in cash and long term investments, which if invested in US Treasuries earning 3% should be earning them $57 billion per year, or $14.25B per quarter. And yet, they managed to only earn $4.8 billion this quarter, or $19.2B annualized. What happened to the other $37.8B, or $9.45B per quarter that they should have earned? Those are the offsetting losses, my friend. $9.45B in losses from non-performing loans and profits only from borrowing from the taxpayer at 0% and reinvesting in Treasuries at 3%. JPM should be reporting losses, but you and I are handing them money so they can continue the charade that our economy is recovering. What a giant ponzi scheme joke this country has become.