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“Bubbles are breaking out everywhere,” exclaims outspoken former-insider David Stockman in this brief FoxTV clip, warning that “its like 2007/2008 all over again.” Of course, we have heard ‘bubble’ talk before but Stockman steps methodically from the broad market (exposing the incredible numbers behind the Russell 2000) to junk bonds (and the record-breaking issuance and risk ignorance) and Fannie Mae (as an example of the idiocy). Crucially, Stockman explains to Neilo Cavuto who tempers the bubble-talk with aggregate measures, “bubbles don’t form at the heart of the Dow, they form on the speculative periphery of the economy and work their way in,” – something that is very evident in today’s market, “the market will have a huge hissy-fit if Yellen tapers… the Fed has taken itself hostage.”

 

Stockman goes on to destroy the myth of a housing recovery “there are few ‘real buyers’ this is massive speculation only”

“This is the 4th bubble the Fed has created through easy money and printing press expansion.”

“we need to get the Fed out of the market…”

“the market will have a huge hissy-fit if Yellen tapers…”

“the Fed has taken itself hostage”

“This is a destructive poisonus monetray medicine that is being put into the system that is distorting all kinds of economic mechanisms with malinvestments on a massive scale”

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/CBMOaBSOED4/story01.htm Tyler Durden

“Bubbles are breaking out everywhere,” exclaims outspoken former-insider David Stockman in this brief FoxTV clip, warning that “its like 2007/2008 all over again.” Of course, we have heard ‘bubble’ talk before but Stockman steps methodically from the broad market (exposing the incredible numbers behind the Russell 2000) to junk bonds (and the record-breaking issuance and risk ignorance) and Fannie Mae (as an example of the idiocy). Crucially, Stockman explains to Neilo Cavuto who tempers the bubble-talk with aggregate measures, “bubbles don’t form at the heart of the Dow, they form on the speculative periphery of the economy and work their way in,” – something that is very evident in today’s market, “the market will have a huge hissy-fit if Yellen tapers… the Fed has taken itself hostage.”

 

Stockman goes on to destroy the myth of a housing recovery “there are few ‘real buyers’ this is massive speculation only”

“This is the 4th bubble the Fed has created through easy money and printing press expansion.”

“we need to get the Fed out of the market…”

“the market will have a huge hissy-fit if Yellen tapers…”

“the Fed has taken itself hostage”

“This is a destructive poisonus monetray medicine that is being put into the system that is distorting all kinds of economic mechanisms with malinvestments on a massive scale”

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/CBMOaBSOED4/story01.htm Tyler Durden

In the aftermath of the devastating, vicious, tax-deductible DOJ settlement with JPMorgan, its stock may have responded by soaring to new all time highs (unclear if it was JPM’s prop desk – in violation of the Volcker and every other rule – doing most of the buying) but that doesn’t mean the benefits go out equally to all. According to Reuters, while JPM’s shareholders will reap the benefits of yet another year in which Jamie Dimon uses nearly $600 billion in excess reserves, aka excess deposits, to ramp product risk around the globe and corner assorted markets (until various unknown teapot tempests blow up in his face), JPM’s employees – unable to manipulate every market as much as they want to, and as much as they have in the past now that every action by JPM is scrutizined – will be stuck with total all in compensation that is unchanged from last year. Oh the humanity.

From Reuters:

“JPMorgan Chase & Co plans to keep overall compensation roughly flat this year from last year, in a sign that employees will feel at least some pain from the bank’s recent legal settlements, according to two sources familiar with the matter. Pay increases have been muted across much of the banking sector in the aftermath of the financial crisis, but JPMorgan’s decision would put the bank on the lower end of expectations for the rest of the industry.”

However, be not sad dear JPM bankers – it was only 3 years ago that the entire world was crucifying Goldman Sachs leading to a plunge in comp for the firm’s little tentacles, which forced the hedge fund that controls every central bank in the world to go deep underwater. Since then comp has recovered and many Goldman partners are bringing in more than ever before.

So while JPM may suffer the idignity of not offering its workers a good solid raise for countless alleged acts of small and large criminality (because the firm may never admit or deny guilt), how is the rest of Wall Street doing?

Earlier this month, compensation consultant Johnson Associates estimated that commercial and retail bankers overall will get bonuses that are unchanged to 5 percent higher this year. It estimated bonuses across all of Wall Street, including large asset management firms, will be up 5 to 10 percent.

 

Options Group estimated that average pay will rise 4 percent.

 

At JPMorgan, bonuses were largely locked down early this week, though payouts could change in unusual situations or if there is an unexpected change in the company’s results during the last six weeks of the year, said the sources, who spoke on the condition of anonymity.

 

About 156,000 of JPMorgan’s 255,000 employees work in retail, mortgage and credit card businesses, where pay is generally lower than in its investment bank.

…

 

“We have never blamed employees broadly for mistakes that were made away from them,” Dimon said on Tuesday in response to a question from a stock analyst about compensation expense.

… Just paid them less. And speaking of Jamie, how is his bonus looking?

It is unclear how Dimon’s bonus will be affected by the settlements. For 2012, the board cut Dimon’s total pay in half to $11.5 million, citing the $6.2 billion of “London Whale” trading losses that happened under his watch.

Assuming equal treatment for all, how can Jamie Dimon possibly subsist on just $11 million for two years in a row – just how many more bailouts and neither admitted nor denied crime sprees will it take for the charming CEO to finally stash away enough to comfortably retire?

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9GA9tbr8lU8/story01.htm Tyler Durden

In the aftermath of the devastating, vicious, tax-deductible DOJ settlement with JPMorgan, its stock may have responded by soaring to new all time highs (unclear if it was JPM’s prop desk – in violation of the Volcker and every other rule – doing most of the buying) but that doesn’t mean the benefits go out equally to all. According to Reuters, while JPM’s shareholders will reap the benefits of yet another year in which Jamie Dimon uses nearly $600 billion in excess reserves, aka excess deposits, to ramp product risk around the globe and corner assorted markets (until various unknown teapot tempests blow up in his face), JPM’s employees – unable to manipulate every market as much as they want to, and as much as they have in the past now that every action by JPM is scrutizined – will be stuck with total all in compensation that is unchanged from last year. Oh the humanity.

From Reuters:

“JPMorgan Chase & Co plans to keep overall compensation roughly flat this year from last year, in a sign that employees will feel at least some pain from the bank’s recent legal settlements, according to two sources familiar with the matter. Pay increases have been muted across much of the banking sector in the aftermath of the financial crisis, but JPMorgan’s decision would put the bank on the lower end of expectations for the rest of the industry.”

However, be not sad dear JPM bankers – it was only 3 years ago that the entire world was crucifying Goldman Sachs leading to a plunge in comp for the firm’s little tentacles, which forced the hedge fund that controls every central bank in the world to go deep underwater. Since then comp has recovered and many Goldman partners are bringing in more than ever before.

So while JPM may suffer the idignity of not offering its workers a good solid raise for countless alleged acts of small and large criminality (because the firm may never admit or deny guilt), how is the rest of Wall Street doing?

Earlier this month, compensation consultant Johnson Associates estimated that commercial and retail bankers overall will get bonuses that are unchanged to 5 percent higher this year. It estimated bonuses across all of Wall Street, including large asset management firms, will be up 5 to 10 percent.

 

Options Group estimated that average pay will rise 4 percent.

 

At JPMorgan, bonuses were largely locked down early this week, though payouts could change in unusual situations or if there is an unexpected change in the company’s results during the last six weeks of the year, said the sources, who spoke on the condition of anonymity.

 

About 156,000 of JPMorgan’s 255,000 employees work in retail, mortgage and credit card businesses, where pay is generally lower than in its investment bank.

…

 

“We have never blamed employees broadly for mistakes that were made away from them,” Dimon said on Tuesday in response to a question from a stock analyst about compensation expense.

… Just paid them less. And speaking of Jamie, how is his bonus looking?

It is unclear how Dimon’s bonus will be affected by the settlements. For 2012, the board cut Dimon’s total pay in half to $11.5 million, citing the $6.2 billion of “London Whale” trading losses that happened under his watch.

Assuming equal treatment for all, how can Jamie Dimon possibly subsist on just $11 million for two years in a row – just how many more bailouts and neither admitted nor denied crime sprees will it take for the charming CEO to finally stash away enough to comfortably retire?

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9GA9tbr8lU8/story01.htm Tyler Durden