JPMorgan’s net income fell 2% in the third quarter as the bank had to set aside more money to cover bad loans, but the results topped Wall Street estimates and shares rose in morning trading.
The situation may seem like déjà vu for investors who suffered through the 2008 crash—or those who saw the movie The Big Short, which depicted the economic conditions that led to it.
The so-called Great Recession was conveniently timed to allow newly elected President Barack Obama and a filibuster-proof Senate to speed through what was then considered one of the largest spending packages ever—ultimately becoming a casebook study in government waste and fueling the tea-party outrage that punished Obama in the following midterm elections.
It began with the risky lending habits of banks and mortgage brokers such as Fannie Mae and Freddie Mac, spilling over to Wall Street firms such as Lehman Brothers, arbitrarily designated by the government as “too big to fail.” […]
— Read More: headlineusa.com
