It is also an interesting development that all of the major derivatives players(the ones who have the greatest counter-party risk for all the OTC derivatives markets they make) all tanked on about 5-6x average volume on July 24th, just one day prior to this massive(is this the Lundy bottom rally)...I know the media tried to attribute this to the ENE fiasco, but I think it goes further than this...After all BAC had little to do with this ENE fiasco, as far as the media reports, and yet it has tanked from around 77 into the mid-50's as well...
very very chillingly close er.... now that you mention it... they don't have meriweather's picture in the lobby at jpm but guess what? robert merton (one of ltcm partners) was a "senior advisor" there from 1999 until 2001.
It wasn't just the banks. I know in the past AIG has been active in the derivatives market and it's chart sure looks like the banks.
<font size =1>Mon, 21 Aug 2000, 9:05am EDT Meriwether Apologizes for LTCM Collapse, Cites Flaws (Update2) By Richard Blackden Greenwich, Connecticut, Aug. 21 (Bloomberg) ...</font> http://209.41.120.60:8085/~CafeChat/guests
speak of the devil..... the american taxpayers will never see that money again!!! http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020804/ap_on_bi_ge/us_latin_troubles_4
RE: JPMorganChase/Derivatives Monster Interesting today the "asset allocation" shift from Schatz to Dax, considering the above "rumor" that JPM has the Schatz cornered. Of particular interest is the fact the the Euro has sold off in tandem with the Bunds (look at the intraday charts), since the currency has been inversely correlated to european bonds in the last couple weeks. One could (wildly) speculate that a possible reason for the asset allocation shift today is that JPM is being forced to liquidate their Schatz position and buy dollars to because of a liquidity problem. Hmmm.