But a decline turned into a smackdown, as JPM chose to make their own announcement of their stress test results and shock a quiet market. I almost think that this was Jamie Dimon's way of telling James Koutoulas, and the MF Global customer, to shove their open letter where the moon don't shine.
Four banks have failed the Fed's stress test: Citigroup, Allied Financial, MetLife, and Sun Trust. Most of them have capital adequacy problems. And like Dick Fuld, no one on the Street really likes Vikram Pandit. Someone had to fail to give the test some 'credibility.' That was the entire point of this exercise.
Moral hazard does not even begin to describe the regulation of the banks and the markets by the Obama and Bush Administrations.
Give this a few days, and then watch as the markets return to trend. The Fed can create the appearance of wealth, but is unable to create real wealth that lasts.
I would almost like to see Ron Paul elected President, just to see him ripping through the embedded old boy network in Washington that serves Wall Street.
The problem is that he will never obtain the endorsement of his own party, much less the monied interests and their faithful retainers in the media. Still, if he does decide to go third party, the key tell would be his choice of running mate. Such is the stuff of dreams.
