JPMorgan Chase CEO Jamie Dimon is telling investors to batten down the hatches, as the Ukraine war and the Federal Reserve’s monetary policy are potentially creating an economic hurricane. Dimon, speaking at a financial conference sponsored by AllianceBernstein, said, “It’s a hurricane. Right now, it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle this,” However, “That hurricane is right out there, down the road, coming our way,” he added. “We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that. You better brace yourself.” Dimon’s warning echoed one made earlier by former Goldman Sachs CEO Lloyd Blankfein, who told CBS talk show Face the Nation last month that there is a “very, very high risk” factor for an economic recession. The Federal Reserve is shedding nearly $9 trillion in bond holdings, and are looking to enact another interest rate raise at their meeting in June. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet,” Dimon said. NN: Let me tell you what is really happening. The 3 blind mice wall street highly leveraged players are sure as shit having a very bad feeling, see a enormous hurricane and very very high risk… Are really warning about their very very high debt and over leveraged balance sheets. They all thrived on free money. And it reflects the inhere flaw is banking…. Which is borrow short term cheap money and lends it out long and pocket the difference in rates. After years of borrowing money for free and dumping their securities on the FED for endless liquidity that party is ending. And on their balance sheets are enormous debts were they loaned long. The curse of the banking system… Borrow money in the spot market and lend it out for on average for ten years at a fixed rate. The problem is the short term money which was damn near free is getting very costly and soon they will be upside down. Meaning the interest they are collecting long is not enough to cover their ever rising short term borrowing costs…. INCOMING!!!
For me this is way way premature. At the earliest the recession will not hit into late next year. Their is plenty of time to rally in a bear market oingaver and over a