• Tag Archives Jamie Dimon
  • Are Cryptocurrencies Inflationary?

    There’s a debate raging over what, exactly, bitcoin and the thousand or so other cryptocurrencies actually are. Some heavy-hitters are weighing in with strong, if not always coherent opinions:
    Jamie Dimon calls bitcoin a ‘fraud’
    JPMorgan Chase CEO Jamie Dimon did not mince words when asked about the popularity of virtual currency bitcoin.
    Dimon said at an investment conference that the digital currency was a ‘fraud’ and that his firm would fire anyone at the bank that traded it ‘in a second.’ Dimon said he supported blockchain technology for tracking payments but that trading bitcoin itself was against the bank’s rules. He added that bitcoin was ‘stupid’ and ‘far too dangerous.’
    – – – – – – – –
    Peter Schiff: Even at $4,000 bitcoin is still a bubble
    One of the best-known among the bears, investor Peter Schiff, is now making his case in even stronger terms for why bitcoin has advanced ever farther into bubble territory.
    Schiff, who predicted the 2008 mortgage crisis, famously referred to bitcoin as digital fool’s gold and compared the cryptocurrency to the infamous bubble in Beanie Babies.

    This post was published at DollarCollapse on OCTOBER 22, 2017.


  • The “Missing Slide”: JPM Credit Card Charge-Offs Just Shy Of Four Year Highs

    While JPM was quick to provide all the favorable data in its earnings presentation (and not so favorable when it comes to the unexpectedly sharp, 27% drop in its fixed income revenues) one thing was conspicuously missing: the slide on “Mortgage Banking And Card Services” which has traditionally been part of the bank’s earnings presentation and was certainly featured prominently in Q1, if dropped last quarter.
    Of course, it is possible that JPM simply forgot to include it, or perhaps it did not want to bring attention to a troubling trend: the concerning increase in net credit card charge-offs, which earlier in the year rose to just shy of $1 billion, and which prompted JPM to report an unexpected increase in credit costs (driven also by JPM’s write-down in its student loan portfolio).
    So we decided to recreate the chart using data JPM disclosed in its earnings supplement, and which may explain why JPM “forgot” to add that particular slide. It shows that after rising to the highest level since March 2013 last quarter, JPM’s net credit card chargeoffs remained over $1 billion as of Sept 30, at $1.019BN to be precise, and just shy of the highest level going back to March 2013, suggesting that contrary to Jamie Dimon’s commentary, the US consumer is not doing all that hot after all.

    This post was published at Zero Hedge on Oct 12, 2017.


  • Goldman Shuns JPMorgan’s Dimon – Plans Bitcoin Trading Operation

    GOLDMAN SACHS SAID TO WEIGH BITCOIN TRADING OPERATION: WSJ
    wait what… pic.twitter.com/WKyrfDIHca
    — zerohedge (@zerohedge) October 2, 2017

    While JPMorgan CEO Jamie Dimon said he “would fire” any employee found trading Bitcoin, Goldman Sachs’ leadership is embracing reality as WSJ reports the bank is weighing a new trading operation dedicated to bitcoin and other digital currencies.
    On the heels of IMF Chief Christine Lagarde’s comments that:
    “… the technology itself can replace national monies, conventional financial intermediation, and even puts a question mark on the fractional banking model we know today… So I think it may not be wise to dismiss virtual currencies.”
    Bitcoin’s price has continued higher – erasing the losses from China and Jamie Dimon’s comments…

    This post was published at Zero Hedge on Oct 2, 2017.


  • Morgan Stanley CEO Rejects Dimon: “Bitcoin Is Certainly More Than A Fad”

    Two weeks after JPMorgan CEO Jamie Dimon’s now infamous “Bitcoin is a fraud” comments, Morgan Stanley CEO James Gorman told The Wall Street Journal today that Dimon is wrong and “Bitcoin is certainly more than a fad… the concept of an anonymous currency is an interesting concept.”

    This post was published at Zero Hedge on Sep 27, 2017.


  • Bitcoin ‘Is A Bubble’ but Gold Is Money Says World’s Biggest Hedge Fund Manager

    – Bitcoin ‘is a bubble’ but gold is money says world’s biggest hedge fund manager
    – Gold is a better ‘store of value,’ Ray Dalio of $160 billion Bridgewater tells CNBC
    – Bitcoin has climbed over 300% this year on speculation and expectation that it will continue to climb
    – Bitcoin is not a valid currency due to volatility and lack of spending ability says Dalio
    – Bitcoin is ‘worse than tulip bulbs’ says JP Morgan’s CEO Dimon
    – Crypto buyers need to be concerned with government regulations
    ***
    The manager of the world’s biggest hedge fund, Ray Dalio has declared his preference for gold over bitcoin.
    Earlier this week Dalio, of $160bn Bridgewater Associates, labelled bitcoin ‘a bubble’. Dalio believes the 300% plus rise in price of the most popular cryptocurrency is down to speculation over its expected price rise, as opposed to confidence in its future role as a currency.
    Dalio’s comments come less than a week after J. P. Morgan’s Jamie Dimon said bitcoin ‘is worse than tulip bulbs’ and a month after Professor Robert Shiller said it was the best example of ‘a bubble right now’.
    Bitcoin had a tough week last week, taking a hit following an announcement by Chinese authorities to shut down exchanges. However, it has since begun to recover.
    It’s strong performance this year has prompted many experienced investors and economists to call it out for what it seems to be – a bubble.

    This post was published at Gold Core on September 23, 2017.


  • Dear Jamie Dimon – Is The Swiss National Bank A Fraud?

    The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.
    ***
    That sounds like a ‘tulip’ bubble-like ‘fraud’…
    ***
    The SNB is up over 120% in Q3 so far – more than double ‘bubble’ Bitcoin…

    This post was published at Zero Hedge on Sep 22, 2017.


  • Jamie Dimon Knows a Fraud When He Sees It – Outside of His Bank

    Jamie Dimon became Chief Executive Officer of JPMorgan Chase on December 31, 2005. An inordinate amount of frauds have been perpetrated inside his bank since that time, none of which the eagle-eyed Dimon spotted. But Dimon says he knows a fraud when he sees one outside of his bank. Yesterday, he took on the cryptocurrency known as Bitcoin, calling it a fraud. At a banking conference on Tuesday, Dimon said that ‘Bitcoin will eventually blow up. It’s a fraud. It’s worse than tulip bulbs and won’t end well.’
    We’re not saying Dimon is wrong about Bitcoin. In fact, more than three years ago Wall Street On Parade compared Bitcoin to the tulip bulb bubble and explained in crystal clear terms how it differs from a real currency, such as the U. S. dollar. But we are saying that Dimon’s super sleuth nose for fraud has the uncanny knack of serially failing him when it comes to Ponzi schemes and mortgage frauds and rogue derivative and commodity traders operating inside his own bank – a taxpayer subsidized institution that has richly rewarded Dimon despite the fact that his sniffer can only catch the scent of fraud outside the doors of JPMorgan Chase. (As of June 30, 2017, according to the Federal Deposit Insurance Corporation, JPMorgan Chase held more than $1.5 trillion in deposits, the majority of which are insured by the Federal government and backstopped by the U. S. taxpayer.)
    On March 22, 2016, the Government Accountability Office (GAO) released a reportthat noted that the U. S. Justice Department had earlier assigned a $1.7 billion forfeiture against JPMorgan Chase ‘for its failure to detect and report the suspicious activities of Bernard Madoff,’ the largest fraud ever perpetrated against the investing public. The GAO stunningly found that because the bank ‘failed to maintain an effective anti-money-laundering program and report suspicious transactions in 2008, it contributed to its own bank customers ‘losing about $5.4 billion in Bernard Madoff’s Ponzi scheme.’

    This post was published at Wall Street On Parade on September 13, 2017.


  • Wall Street Efforts to Improve Its Image Fail to Sway Americans

    Bad news for financial titans like JPMorgan Chase & Co.’s Jamie Dimon and Goldman Sachs Group Inc.’s Lloyd Blankfein: Most Americans hold unfavorable views of Wall Street banks and corporate executives, and distrust billionaires more than they admire them.
    Despite efforts by Wall Street firms to regain trust since the 2008 financial crisis, fewer than a third of Americans view the industry positively — unchanged from 2009, according to the latest Bloomberg National Poll.
    Dimon, 61, and Blankfein, 62, each chief executive officers for more than a decade, have sought to influence the public policy debate on issues including infrastructure investment, regulation, education, immigration and corporate tax reform. Both were revealed as billionaires in 2015, according to the Bloomberg Billionaires Index.
    Yet the poll shows that Americans are much more likely to distrust billionaires than admire them, 53 percent to 31 percent. And just 31 percent look favorably on corporate executives and Wall Street.
    Big banks ‘are still pushing for deregulation and they are going to get us right back to where we were with the financial crisis,’ said poll participant Chad Boyd, 36, an independent voter and information technology worker who lives in Louisville, Colorado, about 10 miles east of Boulder.

    This post was published at bloomberg


  • Gradually… And Then Suddenly

    What do socialism and modern monetary policy have in common? Magical thinking. For both, it’s true on the giddy years up, and it’s true on the sad years down.
    If you’ve been reading my notes immediately before and after the June Fed meeting (‘Tell My Horse’ and ‘Post-Fed Follow-up’), you know that I think we now have a sea change in what the Fed is focused on and what their default course of action is going to be. Rather than looking for reasons to ease up on monetary policy and be more accommodative, the Fed and the ECB (and even the BOJ in their own weird way) are now looking for reasons to tighten up on monetary policy and be more restrictive. As Jamie Dimon said the other day, the tide that’s been coming in for eight years is now starting to go out. Caveat emptor.
    The question, then, isn’t whether the barge of monetary policy has turned around and embarked on a tightening course – it has – the question is how fast that barge is going to move AND whether or not the market pays more attention to the actual barge movements than what the barge captain says. I promise you that the barge captains of both the Fed and the ECB believe they can tighten and taper without killing the market so long as they jawbone this constantly. This is the Common Knowledge Game in action, this is the Missionary Effect, this is Communication Policy … this is everything that I’ve been writing about in Epsilon Theory over the past four years! And as we saw with the market’s euphoric reaction to Yellen’s prepared remarks for her Humphrey-Hawkins testimony last Wednesday, which were presented as oh-so dovish when they really weren’t, this jawboning strategy could absolutely work. It WILL absolutely work unless and until we get undeniably ‘hot’ inflation numbers – particularly wage inflation numbers – from the real world.
    So what’s up with that? How can we have wage inflation running at a fairly puny 2.5% (Chart 1 below) when the unemployment rate is a crazy low 4.3% (Chart 2 below) and other indicators, like the NFIB’s survey of ‘Small Business Job Openings Hard to Fill’ (Chart 3 below) are similarly screaming for higher wages?

    This post was published at Zero Hedge on Jul 19, 2017.


  • A Bearish Citi Warns “Bigger Forces Are At Play”, Pointing To Its ‘Chart Of The Week’

    Over the next three weeks, the investing world will shift its attention away from the endless chatter of central bankers and concerns about the state of the economy, and instead focus on second quarter earning season, which launched on Friday with results from the three biggest US banks which showed that chronically low volatility is anything but good for trading revenues (as Jamie Dimon made all too clear in a bizarre Friday rant). As previewed last week, and is the norm, we get most of the US numbers first, followed by Europe and then Japan.

    And yet, despite expectations for a Q2 S&P500 EPS increase of roughly 7% Y/Y, suggesting solid economic growth, Citi warns that “we may be approaching a cyclical peak.” The biggest concern is that recent economic data, especially the “hard” variety, has been anything but good.

    This post was published at Zero Hedge on Jul 15, 2017.


  • Jobs and Inflation: Gradually and Then Suddenly

    The Fed and the ECB believe they can tighten and taper without killing the market so long as they jawbone this constantly.
    If you’ve been reading my notes immediately before and after the June Fed meeting (‘Tell My Horse’ and ‘Post-Fed Follow-up’), you know that I think we now have a sea change in what the Fed is focused on and what their default course of action is going to be. Rather than looking for reasons to ease up on monetary policy and be more accommodative, the Fed and the ECB (and even the BOJ in their own weird way) are now looking for reasons to tighten up on monetary policy and be more restrictive. As Jamie Dimon said the other day, the tide that’s been coming in for eight years is now starting to go out. Caveat emptor.
    The question, then, isn’t whether the barge of monetary policy has turned around and embarked on a tightening course – it has – the question is how fast that barge is going to move AND whether or not the market pays more attention to the actual barge movements than what the barge captain says. I promise you that the barge captains of both the Fed and the ECB believe they can tighten and taper without killing the market so long as they jawbone this constantly.
    This is the Common Knowledge Game in action, this is the Missionary Effect, this is Communication Policy … this is everything that I’ve been writing about in Epsilon Theory over the past four years! And as we saw with the market’s euphoric reaction to Yellen’s prepared remarks for her Humphrey-Hawkins testimony on Weds, which were presented as oh-so dovish when they really weren’t, this jawboning strategy could absolutely work. It WILL absolutely work unless and until we get undeniably ‘hot’ inflation numbers – particularly wage inflation numbers – from the real world.

    This post was published at Wolf Street on Jul 13, 2017.