We did not suspect JEF was close to failing; however, TV today has confirmed (while trying to anti-confirm) that JEF is truly in severe circumstances.
Always accept confirmations when they are as clear as this one.
Every slight interest-rate increase in the risky Euro-Zone nations translates into a larger loss in value of the underlying, i.e. junk bonds.
There are only two things JEF can do... lie about it (as in the previous short/long position TV-supported story - ha ha ha!) - or - go bankrupt.
Uggg. We did not understand until today. Short sell and allow 30 days or so.
AND... the obvious... Q: Since JEF has gone on record on TV to say it cannot lose any money in the Euro-Zone, then why is there any concern? A: Apparently because that was a ... well a... ah... kind of a ...ah... a lie.
