JP Morgan, Big Banks....It's Like Playing With Monopoly Money...Really!

The fallout from JP Morgan's trading loss of at least $2 billion(could be more ) has dominated the news for the past week . How could it happen? Do you really believe a loss of this magnitude could take place without the CEO knowing about it? He better implement some better "quality controls " for next time . Did anyone say "turning a blind eye"?
In today's financial world and the topsy turvy derivatives market you can(and they do ) insure against almost anything. They make sh_t up as they are going along. It wouldn't even surprise me if they bought insurance insuring themselves against this trading loss , which had effectively insured numerous hedge funds for fluctuations in values of other publicly traded stocks. Not so far-fetched, is it?
At the end of the day, Morgan will make up the loss somewhere else...Probably with each of their millions of customers absorbing a small, transparent amount in their monthly statements, ATM charges or some other innocuous place. Don't shed a tear for JP Morgan! They wouldn't for you !
And you know what ? They don't have to make good on the $2 billion plus loss until 2017 . Yes, 5 years to scheme and shift and maneuver . Spread it out over 5 years .
So let's get finished with the resignations and firings of "the sacrificial lambs ". We have other important things to get to .

Reporting, Steve "Credit Swaps " Goldman.

I Love Big Banks; Yeah, It's Only a $2 Billion Loss...No Big Deal!

Big story in the Times this morning . JP Morgan admits to a trading loss of $2 "billion ". [Billion you say? ]. You know what's great? It's always some "rogue trader in Europe " trading on risky derivatives. Or some " wildman on the "Delta Desk". Yeah, you know the same guys the bank patted on the back and gave huge bonuses last year when " things were good ".
What struck me though about the losses is the bank's "ho hum " attitude . Yes, it is true that JP Morgan made $19 billion last year.....But there goes $2 billion right out the door. "Easy come, easy go! We'll make it up somehow on our customers next year."They'll hardly notice.
So while "Morgan " is shaking off this huge trading loss , I have to stop and ask myself : Will they be so nonchalant the next time a customer has a whopping $82 overdraft on his checking account ? Or will they dunn and harass him until the cows come home?
Ah, the "rich get richerrrrrrr!
JP Goldman reporting.

Josh Hamilton a Free Agent At Year's End....So What Will He Be Worth?

Holy smolee ? Josh Hamilton exploded last night and hit 4 homers and a double in one game . Haven't seen a power performance like that since he jacked out like 27 homers in the Home Run Derby at the "Old Yankee Stadium " a few years back!
His 2012 Numbers ; 14 homers, 36 RBI's , and batting .406 . I know it's only the second week of May, but Hamilton with his amazing strength and sweet swing(Did anyone say Roy Hobbs?) may have just added a few zeros to his free-agent value .
Could you imagine him hitting in Yankee Stadium or Fenway with their respective right field porches ? Scary . Big question is, will anyone really pitch to him the rest of the year ? I don't think so!
Anyway, think about this. Hamilton finishes with 45 homers, 130 RBI's and hits .350. Now remember he's 30 years old. What type of deal would this mega-free agent get?
Maybe $210 million for seven years . More? Your thoughts?

"Skippy " Goldman reporting.

Dominique Strauss-Kahn; New York Trial Court Judge Rules "DSK " Does Not Have "Absolute Immunity " and Must Therefore Defend Case Brought By Maid!

DSK's attorneys motion to dismiss the civil lawsuit brought by the "hotel maid "(aka, "the victim") based on the contention that DSK was immune from civil actions as the Chief of the IMF was denied by Bronx Supreme Court Justice Douglas McKeon . DSK's attorneys argued for absolute immunity under a number of treaties and international conventions, but at the end of the day the Court reasoned that at the time of the "alleged incident " he was not acting in his official capacity and the encounter was unrelated to his official duties with the IMF. Tell him that!
In any event , the case proceeds with the discovery stage. Lawyers get richer , DSK gets dragged thru more mud and the victim longs for a potential payday!

Ah, justice at work.

Legal analyst Steve Goldman reporting.

Clemens Re-trial; Prosecutors May Be in Deep Sh_t Again After Pettitte Concession on Cross-examination !

Trial lawyers know well and good, that a witness is only as good as how he or she performs on cross-examination . Direct examination usually rehearsed over and over again is "a walk in the park " compared with the pressure , stress, fatigue and hostility that a strong cross-examination will bring. I actually had a witness leave the stand during a break on my cross , who never came back to the witness stand and was never heard from again.
Well this scenario was never more telling than in the testimony of "Prosecution star witness ", Andy Pettitte . Pettitte , as expected on direct examination said that in 1999-2000 Clemens told him that he used HGH . On cross-examination , Pettitte testified there was a 50 percent chance he could have been mistaken . Oh my God!
The Prosecution team probably sh_t a collective brick . Case may have just gone down the tubes too . Could the Prosecution have anticipated this ? Did they intentionally turn a "blind (deaf, dumb and blind) eye to this possible response ?
I'll tell you this . If the jury discounts Greg McNamee as a chronic liar, they CANNOT convict Clemens on Pettitte's "I don't really remember testimony ".
And remember, Judge Walton hasn't liked this case from the beginning!

Scoop Goldman reporting.

"Roger Mentioned That He Had Used HGH in 1999-2000 To Help His Recovery ". Ouch!

Well Andy Pettitte finally took the stand yesterday in the criminal trial of Roger Clemens . Clemens and Pettitte were formerly best friends, workout partners and teammates . Pettitte idolized Clemens growing up. So on Tuesday, Pettitte testified for about two hours after being called by the US Attorney. He will be cross-examined by Clemens' legal team today . Like to be a fly in the courtroom today.
At the end of the day if the jurors believe Pettitte and his testimony(remember Pettitte admittedly used steroids), "Roger mentioned to me that he used HGH in 1999-2000 to help his recovery "..that could alone be enough to convict Clemens on several of the charges. Especially in light of the fact that Brian McNamee , Clemens' former trainer and the Prosecution's "star witness " carries tremendous amounts of baggage and his testimony could be discounted completely by jurors.
Should be a volatile session today .
Moral of the story: Always be careful what you tell your best friend.

Steve "HGH" Goldman reporting.

Don't Look Now, Dow just hit 13,313 !

Wowee, the DJI just broke 13,300 almost on cue ! What can and will the Obama detractors say about that ? Considering on November 21st 2008 when Obama took office the Dow had "bottomed out " at 7,449, there is not much the Republicans can say.
Actually, Wall Street should be kissing Obama's a_s as the market is reaching new all-time highs. Are happy days here again?

So investor confidence has risen despite the European economy, despite credit issues, unemployment and a sagging housing market . Go figure.

Only in America!

Wall Street analyst S.F. Goldman reporting.