J.P. Morgan Drops Two 'Dimes'; The Prisoners' Dilemma

J.P Morgan lost two billion dollars evidently in derivatives trading recently, highlighting the point that the flim sector of the U.S. economy outpaces the production sector as it logically should. The new computing and trading algorithms that banks have to take abstract profits with trading guided by physicists not sharp enough to get academic tenure yet consoled with million dollar pay is just an example of the philosophical/sociological problem called the Diners' Dilemma or the Prisoners' Dillema.

http://plato.stanford.edu/entries/prisoner-dilemma/

If some people don't pay the check at a dinner party they profit yet if no one pays the check they go to jail or wash dishes etc. If people voluntarily comply with laws and good government, economic reason and a modicum of altruism the society flourishes generally while of they don't it piles up debt.

http://www.thestreet.com/story/11532035/1/jpmorgan-credibility-cut-with-fitch-downgrade.html

It is very easy for everyone to be irresponsible on economic policy and like the President allow nature to take  its course as if it were micro-economics and required no oversight or ecological relavance-such policies of just bailing out banks and automotive corporations to let the scamming of profits from the world with trading, banking and absrract economic tricks represses the for productivity and builds a structure of world trade bubbles that collapse when so many people and businesses rely non the bunk for support. When if falters the government runs to prop it up again and again until the real day of economic judgment arrives with a vengeance.

The British rely upon global finance and trading and reinforce that policy in the English speaking world that is not coincidentally in decline economically. The United States has 30% of its 'work'force employed in financial related services; the New Freedom Bubble of global trading/derivatives/mortgage/environmental crisis probably will build up unless Mitt Romney is interested in correcting it.