Stock-Markets Diamond Rated - Best Financial Markets Analysis ArticleIn summary, this article concludes that the probability of another stock market crash within the foreseeable future is very high. The word “crash” is used advisedly. Since early March 2009, the industrial equity markets have been rising on misplaced hope. When that hope is dashed – as looks highly probable – the consequence is likely to be a wave of selling pressure given that the credibility of the financial authorities will have been shattered.At the heart of the modern financial “Establishment” lies JP Morgan. This is not a Conspiracy Theorist statement. It is a statement of fact. According to some, JPM is the biggest player in the Derivatives industry, world-wide. Figures of between $600 trillion and a Quadrillion dollars have been bandied about by those who seek to quantify the size of that industry. It really doesn’t matter which number is more accurate. To this analyst, both numbers are equally mystifying so let’s just stay focused on the principle, which is this: Where goes JPM, there goes the US (and, possibly, the World) economy.
For this reason, the fundamental and technical health of JPM is critically important.
“Meanwhile, based on fourth quarter Fed data, we find that, among the nation’s megabanks, six are at risk of failure in our opinion (seven if you count Wachovia and Wells Fargo as separate institutions).JPMorgan Chase is the nation’s largest, with $1.7 trillion in assets in its primary banking unit. It’s massively exposed to defaults by its trading partners in derivatives — to the tune of 382 percent (almost four times) its risk-based capital. Plus, since it holds HALF of ALL the derivatives in the U.S. banking industry, JPMorgan is at ground zero in the debt crisis. “
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