Oops. JPM's prop desk has a realized reported $2B loss. Oops. They will now need to shore up their book and remain a buyer of UST debt at the same time, or else they will no longer be able to get the cash swap from the Fed to buy Europan debt.
First they will need to liquidate assets. How will they do this? Will they loan dollars? Sell equity? Bonds? Their position is surely leveraged too, and by some estamates the hole will be $20B.
So on the Fiat Ponzi crumbles, and given not only the size of JPM, but the institutional role it plays to mind the gaps, this could trigger the event that will usher out the Fiat Ponzi system. Anyway it goes; it could be a sharp sell off in equity, and bond bubble collapse due to a lack of demand, or a collapse of fiat due to an increase in leverage to maintain price stability; anything is possible, and because we have never had a stable system, and the backbone is based on a metric (the dollar) which has no real value, I would say that whatever happens is going to be something that most people have never dreamed of.
Today, it has begun.