From: US GIO To: Undisclosed recipients:; Subject: J.P. Morgan Eye on the Market 10/24/2011: EMU (dromaius novaehollandiae) Date: Mon, 24 Oct 2011 13:34:14 +0000 Attachments: 10-24-11_ EOTM_-_Emu jdromaius_novaehollandiae].pdf Eye on the Market, October 24, 2011 Topics: A biological look at the latest attempt to resolve the European Monetary Union debt crisis; US Q3 earnings The EMU (technical name: Economic and Moneiwy Union, common name: European Moneiwy Union) is beginning to bear more and more resemblance to its aviary twin: the flightless, awkward, and bumbling emu (dromaius novaehollandiae). Europe's long-awaited sovereign and bank bailout package will soon attempt liftoff; we will know more after yet another summit on Wednesday. Why is this so important? Bank recaps in Sweden ('92), the US ('92, '08), Japan ('99) and Asia ('98) were close to marking the bottom of the equity market cycle....but were not designed using the equivalent of the "Goal Seek" function in Microsoft Excel. See attached PDF for details on what may weigh the emu bailout down. Also, an update on US corporate profits, which will hit a new all-time high in Q3; and a bucket of cold water from the Chairman of the Board of Supervisors of China Investment Corporation. Michael Cembalest Chief Investment Officer The material contained herein is intended as a general market commentary Opinions expressed herein are thaw of Michael Cembalest and may differ from those of other J.P. Morgan employees and affiliates. This information in no way constitutes J.P. Morgan research and. hould not be treated as such. Further, the views expressed herein may differ limn that contained in J.P. Morgan research reports. The above summarylprices/quotesistatistics have been obtained from sources deemed to be reliable, but we do not guarantee their accuracy or completeness, any yield referenced is indicative and subject to change. Past performance is not a guarantee of future results. References t