![Jamie Dimon, CEO of JPMorgan Chase - At the JPMorgan Healthcare Investment Conference today, Jamie was entertaining and outspoken as usual:
“But for bad policy, this country would be booming.
I’m positive I’m right; I just can’t prove it.”
Are you more bullish than the average economist?
“Not even close. The economists are right only if policy remains bad forever. They say the tech boom was a one-time event. Are they insane? Technology is like dark matter. It’s everywhere. It infuses everything.”
“When I hear people in D.C. complaining, I tell them Washington has been dealt the best hand anywhere, ever. We have a strong military, university system, small, medium and large business environment, the most innovation, the least corruption, and liquid capital markets across the whole mosaic from venture capital to public equities. But I am very worried about the long run, over 30 to 50 years. We don’t have a divine right to continue succeeding. We have to fix immigration and education and have a rational energy policy. We have been profligate and stupid in our use of oil, and now we have been given a second chance. We should use it wisely.”
“I’m still a Democrat, barely.”
“There has been a tsunami of regulations, often misguided. Small banks can’t survive. After five year, we don’t know the mortgage rules yet. The liquidity rules were ridiculous, and they came back to a rational place. I haven’t read the rules yet, but they sound reasonable.”
What can we do to bring the political parties together? “I’m going to say Martini’s man! It’s a social issue, not an intellectual one.”
What did you learn form 2012? “Don’t screw up. [laughter] But we are a better company because of it. We were scared, and we cleaned it up. I have made a lot of mistakes, and will again, but this was a doozy. I hope it was the worst mistake I make. Imagine how many people came into my office crying. Some leaders acted like children. Some asked how they could help. It’s invaluable to find who these people are.”
Who are your living heroes? “Living? I was going to say Lincoln. Ok, so I’d say Nelson Mandela and Jack Welsh.”
Should the government be in the mortgage business? “It depends on how. The government could offer bond guarantees but have industry pay for it. Like FDIC, the government does not fund it, we do. The government should never have a portfolio. They had a huge portfolio of mortgages. That was the biggest financial disaster of all time, bar none. It was given to us by the government who then blamed the banks.”
Is the Euro crisis behind us? “God no. It’s like a roller coaster. You have not heard much about it recently, but something will happen in the next three months that will scare the hell out of you. Why do we have the EU? One, it’s a political union to avoid wars. And two, it’s a common market. They can’t exit without going into depression. So it will be a roller coaster and it will take years to work out. They might have modest growth through that period.”
Will the U.S. follow the same course as France, Spain, Italy? “We don’t have the same values. While there was disagreement before, no one denies the fiscal problem today. We are a democracy. Countries and individuals may not want to work hard. To work 30 hours a week,. That is a choice that can be made, and it’s not immoral. Maybe they don’t want the stress. They will be sub-par economically, and they have to be OK with that. They can’t say that the answer is to transfer wealth from those who do work hard.” - jurvetson via Flickr](https://atozmarkets.com/wp-content/uploads/2024/04/469b3964d61832c0e6c2beacfee762b9_collage.jpg)
Jamie Dimon, CEO of JPMorgan Chase - At the JPMorgan Healthcare Investment Conference today, Jamie was entertaining and outspoken as usual:
“But for bad policy, this country would be booming.
I’m positive I’m right; I just can’t prove it.”
Are you more bullish than the average economist?
“Not even close. The economists are right only if policy remains bad forever. They say the tech boom was a one-time event. Are they insane? Technology is like dark matter. It’s everywhere. It infuses everything.”
“When I hear people in D.C. complaining, I tell them Washington has been dealt the best hand anywhere, ever. We have a strong military, university system, small, medium and large business environment, the most innovation, the least corruption, and liquid capital markets across the whole mosaic from venture capital to public equities. But I am very worried about the long run, over 30 to 50 years. We don’t have a divine right to continue succeeding. We have to fix immigration and education and have a rational energy policy. We have been profligate and stupid in our use of oil, and now we have been given a second chance. We should use it wisely.”
“I’m still a Democrat, barely.”
“There has been a tsunami of regulations, often misguided. Small banks can’t survive. After five year, we don’t know the mortgage rules yet. The liquidity rules were ridiculous, and they came back to a rational place. I haven’t read the rules yet, but they sound reasonable.”
What can we do to bring the political parties together? “I’m going to say Martini’s man! It’s a social issue, not an intellectual one.”
What did you learn form 2012? “Don’t screw up. [laughter] But we are a better company because of it. We were scared, and we cleaned it up. I have made a lot of mistakes, and will again, but this was a doozy. I hope it was the worst mistake I make. Imagine how many people came into my office crying. Some leaders acted like children. Some asked how they could help. It’s invaluable to find who these people are.”
Who are your living heroes? “Living? I was going to say Lincoln. Ok, so I’d say Nelson Mandela and Jack Welsh.”
Should the government be in the mortgage business? “It depends on how. The government could offer bond guarantees but have industry pay for it. Like FDIC, the government does not fund it, we do. The government should never have a portfolio. They had a huge portfolio of mortgages. That was the biggest financial disaster of all time, bar none. It was given to us by the government who then blamed the banks.”
Is the Euro crisis behind us? “God no. It’s like a roller coaster. You have not heard much about it recently, but something will happen in the next three months that will scare the hell out of you. Why do we have the EU? One, it’s a political union to avoid wars. And two, it’s a common market. They can’t exit without going into depression. So it will be a roller coaster and it will take years to work out. They might have modest growth through that period.”
Will the U.S. follow the same course as France, Spain, Italy? “We don’t have the same values. While there was disagreement before, no one denies the fiscal problem today. We are a democracy. Countries and individuals may not want to work hard. To work 30 hours a week,. That is a choice that can be made, and it’s not immoral. Maybe they don’t want the stress. They will be sub-par economically, and they have to be OK with that. They can’t say that the answer is to transfer wealth from those who do work hard.” - jurvetson via Flickr
In his annual shareholder letter, JPMorgan CEO Jamie Dimon shared his apprehension regarding the rising inflation in the United States. He attributed this to the necessity of increased expenditures in different sectors, such as the shift towards a more sustainable economy and the escalating healthcare expenses.
Dimon also questioned the plausibility of a "soft landing" scenario, where inflation subsides without causing a recession in the economy.
He warned of the potential for high interest rates in the future and assured that JPMorgan is well-equipped to handle a variety of interest rate scenarios, including stagflation, which could lead to higher credit losses and a more challenging market.
AI on JPMorgan
Dimon, in addition to expressing concerns about inflation, also brought attention to the potential influence of AI on JPMorgan. He foresees it having a significant impact and enhancing almost every role within the company.
JPMorgan has made substantial investments in AI, with a team of more than 2,000 experts in AI, machine learning, and data science. Dimon compared the potential impact of AI to major technological breakthroughs of the past such as the printing press, steam engine, and Internet.
According to the International Monetary Fund, around 40% of all jobs will be affected by the development of AI, raising questions about how this rapid technological progress will shape the future of the cryptocurrency industry.
In his letter, Dimon addressed both inflation and the possible consequences of AI, while also recognizing the strength of the U.S. economy in the midst of a "disturbing environment."
Despite previous optimism, he cautioned against the potential difficulties of stagflation, which may entail elevated interest rates, greater credit losses, and reduced business activity.
Dimon's communication emphasized the importance of meticulous economic preparation and readiness for diverse economic situations.
According to the CEO of JPMorgan, there is currently a national dialogue surrounding the potential for the Federal Reserve to lower interest rates for the third time this year. The CEO's cautionary statements regarding inflation concerns could potentially have consequences for the cryptocurrency industry, as financial difficulties may influence consumer spending decisions.
Despite this, the market for cryptocurrencies such as bitcoin and ETH has grown, and these assets could also contribute to inflation by creating more money-like options and creating a sense of prosperity for specific demographics.
The rise of both the NASDAQ and cryptocurrencies demonstrates the intricate economic environment that takes into account the preferences of various generations.
In his shareholder letter, Jamie Dimon covered various economic topics such as inflation worries, potential interest rate scenarios, and the transformative impact of AI.
As JPMorgan readies for potential economic obstacles like stagflation and the disruption of AI, the overall economic environment remains uncertain. The interdependence of these issues highlights the significance of strategic economic preparation and the ability to adjust to rapidly evolving technological advancements.
Dimon's letter serves as a prompt to remain vigilant and adaptable in response to ever-changing economic and technological developments.
Who is Jamie Dimon?
Jamie Dimon, an American billionaire businessman and financial executive, assumed the role of CEO at JPMorgan Chase & Co. in 2006 and became its chairman in 2007.
Under his leadership, JPMorgan Chase has ascended to become the largest U.S. bank by consolidated assets and the world's largest bank by investment banking revenue. Dimon's stewardship has consistently propelled JPMorgan Chase to the forefront of global banking, earning it top rankings in market capitalization and other key metrics.
Previously, Dimon served on the board of directors of the Federal Reserve Bank of New York. Additionally, he played pivotal roles in the growth of Citigroup Inc. and Bank One, the latter of which was acquired by JPMorgan Chase in 2004.