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Message: Bloated arrogance in a leaking ship...
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Just to add to this story, if you want to know how JP Morgan has been able to increment its internal hedgefund many times with an additional $423 billion with the help and complicity of the FED, read the article below which appeared on zerohedge a few days ago. The worst part is that other big banks may have done the same, abusing the $2.1 trillion deposit to loan gap, which has come into existence since the fall of Lehman and which has been possible due to the $2+ trillion in excess reserves injected into the financial system by the FED since 2008.
As the article concludes:
"So, dear Steve Liesman, now that you too know just who is funding the surge in deposits, and now that you too know, that bank(s) are directly taking advantage of this excess deposit pool to trade for their own account, perhaps you can ask the Chairman during his next press conference, what happens to internal bank hedge funds when the Fed starts unwinding its QE and by implications, results in a drop of at least $2 trillion in excess deposits over loans (a number which will likely rise to $3 trillion by the end of 2013, then $4 trillion by the end of 2014 and so on). But certainly ask him what would happen if instead of using excess deposits to invest in the S&P 500 (or Russell 2000 as the case may be), the banks were to lend said money out, and how far would the stock market plunge as a result.
Because, oddly enough, there are some people who are misguided and believe that the Fed still has some capacity to tighten, or even stop expanding its balance sheet, without destroying that house of cards - the S&P500/Russell 2000/DJIA - it has so carefully and lovingly created over the past 4 years."
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