Explaining Southern California's economy

Felix Salmon takes a whack at JPMorgan

You might be wondering what all this brouhaha is over JPMorgan Chase and its now $3 billion trading loss. It's all enormously complicated.

But at Reuters, Felix Salmon does an excellent job of not just explaining it but also turning a spotlight on the real scandal: it's bad that JPMorgan lost billions, but it's even worse that JPMorgan was doing the trade in the first place.

One small addendum: Note that JPMorgan takes the excess deposits that Felix mentions and "ships them off" to London. By which he means the City of London, England's equivalent of Wall Street — if Wall Street were even more reckless than Wall Street was in the lead-up to the financial crisis. This is a place that went into such a cold sweat when the European Union proposed restraints on buccaneer trading activity that Prime Minister David Cameron had to step in and throw his weight around to rescue what is effectively a solid square mile of pure unadulterated hedge fund.

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