Models

For a long time, people thought our solar system revolved around the Earth. Copernicus (or Galileo to some) came around and proved the planets revolved around our Sun.

Models are important - they are the perspective of an individual's perception of any given event. Models are always biased, but the objective should be to choose a model with the least bias possible.

How is this achieved?

Scrutinize opposing aspects, think critically, and have an open mind.

"All Truth passes through three stages: First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident."

- Arthur Schopenhauer

Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn't.

- Mark Twain


These opinions below may be my own or may belong to the authors whom I reference. They are posted for the benefit of mankind, so that we may collectively achieve a common ground and transition into a new golden era as seamlessly as possible.


Friday, May 18, 2012

JPMorgan’s Trading Loss Is Said to Rise at Least 50%




Reposted from American Kabuki
  
MAY 16, 2012, 9:14
JPMorgan’s Trading Loss Is Said to Rise at Least 50%
BY NELSON D. SCHWARTZ AND JESSICA SILVER-GREENBERG

Simon Dawson/Bloomberg News
JPMorgan Chase, center, in London, where the losing trades were initiated. The Federal Reserve is examining the scope of the accelerating losses.

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.

When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank.

A spokeswoman for the bank declined to comment, although Mr. Dimon has said the total paper trading losses will be volatile depending on day-to-day market fluctuations.

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