Euro Soup and Morgan Chase

The Euro is going down into the soup, with the hyperinflationary bailouts of Bankia in Spain, and elsewhere, not quite making it to save the doomed system.

Then there are the real losses at JP Morgan Chase, which are not the $2 billion admitted on May 10, but are now running in the $6-8 billion range, and going up daily. Given JP Morgan's reported $100 billion holdings in casino paper, are you dumb enough to believe those figures? Obama's favorite banker, JP Morgan chief Jamie Dimon refused to say how big the loss may get, when asked at a Deutsche Bank conference this Monday. And other participants in that conference admitted to Bloomberg TV that "if we end up with a catastrophe in Europe in the short turn," Morgan's losses are going to soar.

The JP Morgan derivatives were in the Euro banking soup, and the whole $100 billion could go down, down, down.

So, preparations are underway, no longer quite so behind the scenes, for Greece's exit from the Euro, in short order. German media (e.g. Focus magazine, primetime television programs) began preparing the German population for this inevitability as the week opened; El-Erian, head of the PIMCO bondholding behemoth, told Bloomberg TV on Monday "its probably inevitable and therefore we should plan for it;" London's Royal United Services figure, Dr. Jonathan Eyal, added his bit to the obituaries being written for the Euro.

And then there is the Greek situation, with a political revolt against austerity and new elections. LaRouche told you so.