Remember that 2 billion dollars loses by JP Morgan, it is accelerating to 3 billion dollars.
This is happening because JP Morgan has to unwind its previous large position in the commercial index derivative market and right now the other hedge funds are feasting on JP Morgan's losses.
Remember that this is a market, to unwind, they have to sell their stuff and there must be buyers. Buyers now can demand much lower prices that what JP Morgan originally purchased. There are more complicated details more than this but that's beyond my pay grade.
Lisa Pollack from the Financial Times is a really awesome journalist tracking on this financial mess.
This is happening because JP Morgan has to unwind its previous large position in the commercial index derivative market and right now the other hedge funds are feasting on JP Morgan's losses.
Remember that this is a market, to unwind, they have to sell their stuff and there must be buyers. Buyers now can demand much lower prices that what JP Morgan originally purchased. There are more complicated details more than this but that's beyond my pay grade.
Lisa Pollack from the Financial Times is a really awesome journalist tracking on this financial mess.