Home | About | Donate

Dimon is Forever


#1

Dimon is Forever

Christopher Brauchli

A power has risen up in the government greater than the people themselves, consisting of many and various and powerful interests . . . and held together by the cohesive power of the vast surplus in the banks.

— John Calhoun, May 27, 1836 Speech


#2

By the way, most snakes taste like chicken. Food for thought...


#3

Dump Dimon"s card and go cash. By the way, in a emergency such as power failure, etc. a Dimon card is worthless. Also, Dimon what a evil doing dirt-bag!


#4

At one time in our American history these kinds of interest rates were considered usury and the folks that demanded same were called loan sharks and both usury and loan sharking were crimes punishable by long priso n sentences under the racketeering laws. Of course that was when this sort of stuff was associated with the Mafia.


#5

I wouldn't bank with or have cards issued by any of the major banks involved in the collapse of the economy in '08. Bank local with local banks. Cancel your cards and move your money. Remember "bail in"? They can keep your money if they go down again. Won't owe you a dime. Get out now.


#6

Hillary and Dimon are close personal friends.
Which isn't surprising.


#7

Dede, while I totally agree with the sentiment of your post, the reality isn't exactly as simplistic as you describe. Ellen Brown's article posted in December 2015 explains how it actually works....

According to former hedge fund manager Shah Gilani, writing for Money Morning, there is. In a November 30th article titled “Why I’m Closing My Bank Accounts While I Still Can,” he writes:

[It is] entirely possible in the next banking crisis that depositors in giant too-big-to-fail failing banks could have their money confiscated and turned into equity shares. . . .

If your too-big-to-fail (TBTF) bank is failing because they can’t pay off derivative bets they made, and the government refuses to bail them out, under a mandate titled “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” approved on Nov. 16, 2014, by the G20’s Financial Stability Board, they can take your deposited money and turn it into shares of equity capital to try and keep your TBTF bank from failing.

Once your money is deposited in the bank, it legally becomes the property of the bank. Gilani explains:

Your deposited cash is an unsecured debt obligation of your bank. It owes you that money back.

If you bank with one of the country’s biggest banks, who collectively have trillions of dollars of derivatives they hold “off balance sheet” (meaning those debts aren’t recorded on banks’ GAAP balance sheets), those debt bets have a superior legal standing to your deposits and get paid back before you get any of your cash. (Source: Truthdig)

Oh ... this can be the automatic forced transaction that actually occurs:

  • Your deposited money before an actual bail-in is an unsecured debt of the TBTF bank.

  • Once the bail-in occurs, your unsecured debt of the TBTF bank automatically becomes "stock" in the TBTF bank .... that, in actuality, just went under. In other words, you own stock in that worthless TBTF bank and the unsecured debt owed to you by the TBTF bank just vanished... as designed and blessed by the state.

Some questions:

  • Can the bank come back financially and become a viable and profitable operating enterprise again? Maybe yes, maybe no.

  • What is the value of your stock in the TBTF bank that just failed in relationship to your deposit(s)?

  • Even if the the bank recovers, how long will it take?

  • Even if the bank recovers, how long will it before your stock in that bank has any value that is even close to the value of your deposit(s) before the depositor bail-in?

Additional note: If you need the money you deposited with the bank and need to "sell or redeem" the stock, the depositor will more than likely suffer a huge loss ... if selling or redeeming the stock will even be allowed until the TBTF bank recovers.

So, as you say, Dede, the bank will not owe you a dime if they do not recover. Would this be enough in the U.S. to get the people in the streets all across the country? Unfortunately, I doubt it. More than likely, they would just roll over and accept it as being inevitable.

This is one of many realities of the state representing the interests of the elite ruling class ... not the working class.


#8

"Since neither poor earnings by the bank nor a need to find the money with which to pay Mr. Dimon his $27.5 million annual compensation explains why the interest rate on credit card cash advances has increased, there has to be some other explanation and, in fact, there is. Morgan Chase raised the interest rate on those credit cards because it could." -C. Brauchli

This is capitalism. In a way it doesn't even matter that it's Jamie Dimon. It would be anyone in his position. The point is that in capitalism people behave in a manner consistent with the social relations they inhabit.

The circuit of banking capital is M - M', where M' > M. It is the movement from M to M' that transforms mere money into money capital. The circuit would be absurd and empty if M = M'. Therefore, Mr. Dimon or anyone in his job would do exactly the same thing if they wanted to keep his/her position. And, if they don't behave to augment M to M' as fast as possible, then there are hundreds of people right down the hallway who will.

The point is, of course, that the problem isn't Mr. Dimon, however despicable his actions may be. It's the economic system that provides yuge incentives for people to behave this way or lose their jobs and in fact determines they behave this way.

Another perfect example is Heather Brasch, CEO of Mylan Pharmaceuticals. MP bought the rights to EpiPen in 2007 from Merck. This drug is the only "first line treatment for anaphalxis." That is, Mylan has a monopoly on the drug. Since then the price of this epinephrine delivery system has increased 548% from $93.88 to $608.81 according to the WSJ using Truven Health Analytics statistics! Meanwhile, according to Dr. Douglas McMahon, "The production cost of the drug is close to nothing." Also, too, during this time, (Palin) Ms. Brasch's income increased from $2.5M to $19M, a 660% increase!

There's a couple of other key points. Mylan Pharmaceuticals exploited a 2012 widely publicized (I wouldn't be surprised if they were behind the hype) death of a 7 year old Va. school girl, who had an allergic reaction to peanuts. Congress passed legislation encouraging states to have epinephrine devices on hand in schools. 47 states now require or encourage schools to stock the devices, thus greatly increasing demand for Mylan's Epi-Pens. President Obama "signed a bill in 2013 that provides incentives to states to boost the stockpile of epinephrine at schools" according to the WSJ

Here's a couple of kickers. First, Heather Bresch is the daughter of W.Va. Senator Joe Manchin. This whole noxious concoction of the government stoking demand to increase Mylan's profits has the stench of fascism on it, i.e., the merging of corporate and government interests.

Further, Ms. Bresch isn't even a business graduate of W.Va. Mike Garrison is the former president of WVU. He awarded a business degree to Ms. Bresch even though she didn't have enough credits earned. He resigned over this scandal in 2008. Further they went to high school together and Mr. Garrison is a former Mylan lobbyist.

As Joe Strummer once sang, "You figure it out."


#9

First, I noticed you spelled Heather Bresch/Brasch two ways; very important to edit comments of such importance. Second, why aren't these "facts" being covered by MSM as the story of drug increases, EpiPen devices especially, is headline news? What you bring up is important, the revolving door in our political system along with how such political - business connections are ruining our country!


#10

Great comment. Our political/economic/warmonger system is truly disgusting. The fact that it based on the 'logic' of capitalism makes it more, not less horrible.


#11

Thanks for pointing out my typo. I guess I was just careless.

These facts were covered by the mainstream media. That's where I got all of that information. It's all from the WSJ, Bloomberg and the NYDN believe it or not.

The issue isn't whether the capitalist, corporate media covers these issues. They do. It's a matter of emphasis. If this same sort of price gouging would have been done by terrorists, the Iranians, the Chinese or the Russians it would have been wall to wall, 24/7 coverage. This is because the capitalist, corporate media's job is to sow fear, uncertainty and doubt (FUD), pumping us up with so much fear we'll accept any war to be kept "safe." This is all the while attracting the viewers and readers their advertisers covet so they may profit, while simultaneously reinforcing narratives about who our "enemies" are.


#12

"We have met the enemy and they are us!" Walt Pogo.


#13

Uh, duh, I don't understand.......One of the first things F.D.R. did after being elected president during the Great Depression was to stop the run on the banks. The FDIC was established to guarantee the deposits of ordinary customers -- I think the limit is $250,000 now. So isn't any deposit up to that limit insured $100 by the FDIC, even if you bank with an unindicted felon like Jamie Dimon? I realize the New Deal is being dismantled brick-by-brick, but isn't the FDIC still functional? If not, there is nothing to stop a Depression-style run on all the banks. Another thought.......What is the statute of limitations on banking fraud and abuse? I realize neither Clinton nor Trump will indict anyone -- Obama has established a "too big to jail" precedent for elites -- but a second term probably isn't in the cards for either of them. The thought of of cuffing and stuffing Dimon and his cohorts in four years is delightful.


#14

It appears that mbrownec is listening to Alex Jones or some other Alt Right conspiracy nut.


#15

Two points:

  • I am an anarchist ... an anarcho-communist to be specific. As such, I am hardly 'Alt-Right' as you posted. I am the exact opposite of the 'Alt Right' and as far left as there is.

  • When referring to me (or my posts), please have the personal integrity to address me directly. Thank you.

Have a good day! :wink:


#16

Could this happen in a direct democracy with no politicians to bribe?


#17

Mr. Brauchi would be able to answer his own rhetorical question (concerning Chase's reason for the interest spike) simply by mentioning that Chase and the other four too-big-to-fail (TBTF) banks that controlled 25 % of US bank assets when they caused the 2008 crash, will control 50% by the time the Obamas move out of the White House. The closer to monopoly Chase moves, the more leverage they have to increase fees, etc. without needing to explain a G_____n thing.

Dodd Frank has enabled the TBTF banks to keep gaining market share at the expense of community banks and will continue to do so until it is repealed and replaced by legislation that was high on Sanders' primary election agenda...breaking up the TBTF banks. Three guesses as to which POTUS candidate will even attempt to break them up ?


#18

"(Some readers may also wonder why such enormous fines and penalties have not resulted in anyone at the bank going to jail. The answer is that often the matters settled are not criminal in nature though they might seem so to victims of the bank’s behavior. And even when criminal, corporations, although persons for purposes of sophisticated United States Supreme Court analysis, understood by only the authors of the Court’s opinion, are not persons when it comes to going to jail.")

Delicious satire as only Mr. Brauchli serves it up!


#19

You also have to HAVE the cash to pay off the credit cards and many of us do not.

Credit cards are used for emergencies. If several financial challenges hit at once, people end up in debt; and, as is widely understood, the #1 reason for bankruptcy in the U.S. is medical bills.

So while many of us would LOVE to "just pay off those cards" it's difficult when there are always expenses that crop up to keep you on the debtors' treadmill.

Had citizens still had politicians protecting THEIR interests, when banks were allowed to pay less than 1% interest on savings, credit card interest should have been reduced to at most 7-8%.

The gap between what banks STEAL from working people and what they pay in interest is a chasm.

Why rob a bank when you get better results by becoming one. Enron's architects understood that well. At least during the days of the S & L crisis, there was political muscle that held the grifters accountable.


#20

Well said. Allowing Heather Bresch, Martin Shkreli, and Jamie Dimon, etc. to conduct business like this is just punishing to watch. American people are distracted by smoke and mirror shows on television, over worked, under payed, with a government that does not give a damn. When I canceled television service, life changed for the better. People don't get upset, Television is the corporations main vehicle to brain-washing you into believing they are there to help. Also, survivalist Bear Grylls always says,"Don't ever give up Hope."