So when Eric Sprott and Sasha Solunac issue a report with the following messages, it is worth taking seriously:
- JP Morgan has tripled its loss provisions for prime mortgages (not sub-prime, but prime!)
- Headlines in the business press are faking investors out
- There is no precedent since the Great Depression for the credit bubble that is now imploding
- The problems spawned by the credit bubble cannot be solved by government decree or central bank largesse
- Enormous losses have yet to be recognized and financial institutions may fail.