Money To Burn


Pic of the day:  Victor Dubreuil, Money To Burn

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For those of us who have been thrown into hell, mysterious melodies and the torturing images of a vanished beauty will always bring us, in the midst of crime and folly, the echo of that harmonious insurrection which bears witness, throughout the centuries, to the greatness of humanity.

Albert Camus

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Jamie Dimon, CEO of JPMorgan Chase gambled and lost.  I do not claim to understand the complexity that is derivatives, so I cannot speak to exactly what he did.  CDO’s are insanely complicated.  But I tell you that does not really matter, only one thing does.  JPMorgan lost $2,000,000,000 due to hedging that was reported weeks ago as being too large to unwind without causing damage and agitating markets.

True to the statement, after the report surfaced that JPMorgan lost that money, the DJIA and S&P futures markets initially dropped like stones.  They’ve recovered some since, but are still down around 75 on DJIA and 9 on the S&P. Which really isn’t too bad, until you realize that this is only one company we’re talking about having that effect.

The market’ll be fine, but one has to wonder what kind of leadership that Dimon is really bringing if he could let this happen.   I know profits are important, and you try to be as aggressive as possible, but there is such a thing as too aggressive.

But you know, there is good news as well.  Oil is down and keeps falling.  The Oil market has been over-inflated for quite a while, and the fall in prices that is happening was inevitable.  WTI crude has fallen to $96 from around $106 barely a week ago, if I remember correctly.  And Gold has been in a precipitous fall for over a year.  Even with a spike in prices that happened at the end of February prices have fallen over $180 an ounce in the last 6 months and nearly $300 since it hit it’s all time high of $1889 sometime in August of last year.

Falling prices in commodities, along with waning interest in commodities means that the market is getting stronger, if what little I learned about this subject over the years is correct.  But there are external influences on the market that could be doing things to these numbers, altering things beyond this poor writer’s capacity to understand how things will go.

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I don’t have enough money.  No one does.  No one ever does.  And that is the problem with our society, we’re fixated and consumed by want.  Money is everything, or it feels like it is.  The moment it comes in, it goes back out and we never really see it.  In the end we don’t work for ourselves, or our futures, but we work for the people we pay, and those people don’t really do all that much for us in return.

Credit card companies own us.  Banks own us.  But we put ourselves in their hands. Slaves we may be but we, dull witted as we are put ourselves in their grasp. They have us where they want us because we gave ourselves to them willingly.  The whores run the whorehouse, does it surprise you that they try to drip you dry of everything.  That is what whores do, isn’t it?

That is what we have to change, which means that it isn’t just a change of the system we need, we need a change in ourselves as well.   If we are to free ourselves of them, of the credit mess, of the money mess, we need to be less beholden to them.  We as a society need to learn impulse control.  Not buy stuff just because we want it, not spend simply because we have money and there are things to buy.  Yes the system is a mess, but it is the system we created, or correctly stated one our forebears created, and we have to live within it.

Can we fix the system?

I’m not 100% sure.

Much as I’d like to say yes, better smarter men in a better position to do it have tried.

And failed.

So I change myself, I don’t have money to burn.

I hope the change is enough, for me.  For now.

Can’t burn down the whorehouse just yet.

Yet.

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That’s it from here, America.  G’night.

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