When the Going Gets Tough – Bet Against Yourself

Everyone knows that times are tough, and also that the banks have been on very shaky ground.  If you were a bank, you’d probably be pretty worried.

And the banks know better than everyone else just how bad off they are.  Such a bank might think long and hard about just how to protect itself and come back in from the ledge of insolvency.

“Wait a minute! I’ve got it!” shouts an eager 40-something bank employee, in an otherwise grim meeting.  ”Our bank is terrible.  The best investment possible… is to bet against ourselves! We quite literally can’t lose this bet.”

And so it was, as investors learned that JPMorgan Chase Manhattan First National WaMu (okay – just JPMorgan Chase will do) did just that.

You might think this is a troubling sign, or that Chase is just crazy.  But let’s face it, almost everything looks like a bad investment right now, and if betting against a bank – even if that’s yourself – fits into your survival plans, go for it.

One thing only seems for sure: that JP Morgan’s legacy will still be around 100 years from now.  Somehow, one way or another, they will be with us.  You can take that to the bank.