The Hill News

I’ve skimmed some informed discussions at economics blogs about how JPMorgan Chase (JPMC) lost $2 billion and counting on their “synthetic credit portfolio.” But educated guesses are still guesses, the next big problem in the financial system will be entirely different, and to be honest, it all gives me a headache.

My imperfect understanding puts me in good company.

“Paul Volcker by his own admission has said he doesn’t understand capital markets,” Jamie Dimon told Fox Business News earlier this year. “He has proven that to me.” Dimon reportedly was asked at a dinner for investors about Volcker’s criticisms and the arguments by Richard W. Fisher, president of the Federal Reserve Bank of Dallas, that “too big to fail” banks should be broken up. Dimon said he had only two words for Volcker and Fisher: “infantile” and “non-factual.”

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