JP Morgan Stock Price Can’t Outrun Silver, But it Will Try
JP Morgan enjoyed the headlines yesterday, a temporary reprieve from the vile cesspool of news coming out of the lender in recent months, dressed in corruption as it has been. JP Morgan saw their own stock price plunge 24 percent in the month after disclosing the bad apple, multibillion-dollar trading loss otherwise known as the “London Whale” which has since emerged as a multiple-trader snafoo resulting in at least $28 billion in losses this year for the welfare-made lender. As of today, that loss has been negated. However, although the bank’s stock climbed 3.7 percent to $41.40 yesterday in New York, moving past the $40.74 closing on May 10, the day Jamie Dimon announced the then $2 billion trading loss, it was no match for the devil metal’s near 6 percent rise in price in the wake of Ben Lightyear Bernanke’s announcement of Quantitative Easing to infinity and beyond:
The mysterious bets on tangled derivatives positions have been the focus of investigation by the US Senate as well as more than 11 state, federal and international agencies, not the least of which being the Justice Department and Securities and Exchange Commission. The stock still sits 6.6 percent below its April 5 close, when the illiquid credit derivatives position was made public. Since then, JPM has been the second-worst performer on the 24-company KBW Bank Index.
JPM fell 10 percent the day after Dimon disclosed the lost, the biggest drop for the bank in over three years. The bank closed as low as $31 on June 4. The bad news keeps rolling in with JP Morgan as they have had to reshuffle many top positions, and investigate how to reduce risk associated with some of the firms most lucrative services.
Moreover, the directed liquidity injection into The Morgue took place amid a Quantitative Easing 3 that resulted in the illusory result of a strengthening stock market, thus signaling that the world yet grasps the magnitude of the problems it faces. Sure, gold and silver responded as one might think to the announcement of increased paper supply, but that the stock market also rose considerably (also an illusion) signals that the economy is still functioning under old world paradigms. In other words, gold and silver have yet had the opportunity to perform as they should be doing amid an economy transitioning from derivatives centered to one centered on real value.