JPM dropped a bit of a bombshell last night, as the great Jamie Dimon confessed the losses at their London based CIO 'hedging operation.'
I had to chuckle today as the Street mavens attempted to direct and deflect that event, so as not to interfere with the much awaited Facebook public offering is expected to be priced next Thursday, May 17th.
I expect that the Street will rally to the support of the major indices in order to hold up demand for this fat cow of an IPO.
I imagine that it will price to expectations, or possibly just below, but obtain a decent initial performance based on nothing else than pure price manipulation and a shortage of shares for borrowing.
And then I think it will be cut in half, perhaps over a period of weeks. But it depends quite a bit on what else is happening in the macro world, particularly with regard to European debt and the next round of US quantitative easing, no matter the paper in which they choose to wrap it. Liquidity floats even dead fish.
Our son is coming home from university this evening, and a godson is coming here on a two week leave from the military, so I must make preparations for their hearty appetites. I have missed them greatly and will be very happy to see them. Children can be a worry and a heartache yes, I know that well, but also a great consolation and joy to a world weary heart.
Have a pleasant weekend.