JPM stock did nothing when we had 1000 pt run. More sellers than buyers.
It had a big run up to that point after the government gave them wamu while most other financials were tanking. Problem is, right after that, Mr. Dimon said he was going to increase JPM stock float by several billion to fund all the costs and build up its capital. Also a bunch of other euro banks started failing the next week.
What’s probably got his shorts scrunched up is the government seizing partial ownership of his company this week. Financials that are partially or fully nationilized tend to have flatter earnings potential because the government will monitor their business dealings more and makes it more challenging to take risks to boost business.
But one thing he is right about is the government taking too long to act. The simple act of raising the FDIC insurance limits which should of been instituted over a month ago would of calmed nervous depositors and Wamu & Wachovia would still be alive today. Not to the mention all the jobs to be lost by these rushed mergers and the billions in stockholder value wiped out. Headlines about largest bank failures in history tend to cause problems with confidence in just about EVERYTHING.