JP Morgan lost over Two Billion Dollars on a bad “bet”
According to the Wall Street Journal, the company was betting on “a continued economic recovery with a complex web of trades tied to the values of corporate bonds.”
They “bet” wrong and now have a little minus sign in front of $2,000.000,000.00 and counting. That’s right – they could lose another billion or so by the time the positions are closed.
You can read more details at http://online.wsj.com/article/SB10001424052702304070304577396511420792008.html
JP Morgan’s losses have no effect on me or my net worth. Most of you know that I quit “investing” in the stock market years ago and have made a nice living investing in real estate instead. In fact, todays news is just more evidence to me that I do not want to depend on these “Wall Street Guys” to provide for my families future.
Why do some people work for 30 or 40 years and then hand over their life savings to someone they don’t know, to invest in companies they don’t understand, so those companies can trade “complex derivatives” and maybe lose a couple billion on one bad bet? I will never have a clear answer to that question.
But this may surprise you – I have tremendous respect for Jamie Dimon, the current chairman, president and chief executive of JPMorgan Chase.
As Ben Franklin said “Energy and persistence conquer all things.”
Jamie Dimon epitomizes that quote. He delivers the good news, and the bad news, and keeps on going.
This month at our WREIA meeting, (which is May 21st) we are going to talk about getting started and restarted in 2012.
Mark Your Calendar for May 21st – The May WREIA Meeting
Getting Started or Restarted In 2012
5 Major Challenges Influencing Today’s Market That Didn’t Exist in 2005
The common theme running through my notes for WREIA is PERSISTENCE. Jamie Dimon has an enormous amount of persistence, and so should you. You must have the ability to keep going, even when you face obstacles.
Times have changed – pretty dramatically - since 2005. There are many new challenges that you face in this business, or any business. If you choose to quit when you hit small bumps in the road, you simply will not make it to the finish line. Jamie Dimon didn’t resign with his announcement yesterday. He didn’t quit. Instead, he also suggested that it might even make his business more difficult. Then – he got up today, and kept going.
Don’t be afraid to make mistakes. Inevitably you will. I still do, and will continue to make mistakes. How you react to those mistakes will make a huge difference at your finish line.
We work every day to to give you the skills, tools, and access to the people you need to avoid mistakes and be successful. If there is something I can help with, let me know.
Ok, it’s Friday, and it looks like it is going to be a beautiful weekend here in the DC area – make sure you take time to enjoy it.
….. and take some time to celebrate Mother’s Day!
Washington REIA Network, President
Profitable Property, Founder
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