Bitcoin Forum

JPMorgan Chase CEO Jamie Dimon says he is preparing the biggest U.S. bank for an economic hurricane on the horizon and advised investors to do the same.

“You know, I said there’s storm clouds but I’m going to change it … it’s a hurricane,” Dimon said Wednesday at a financial conference in New York. While conditions seem “fine” at the moment, nobody knows if the hurricane is “a minor one or Superstorm Sandy,” he added.

“You’d better brace yourself,” Dimon told the roomful of analysts and investors. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”

Beginning late last year with high-flying tech names, stocks have been hammered as investors prepare for the end of the Federal Reserve’s cheap money era. Inflation at multidecade highs, exacerbated by supply chain disruptions and the coronavirus pandemic, has sown fear that the Fed will inadvertently tip the economy into recession as it combats price increases.  

While stocks bounced from a precipitous decline in recent weeks on optimism that inflation may be easing, Dimon seemed to dash hopes that the bottom is in.

“Right now, it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle this,” Dimon said. “That hurricane is right out there, down the road, coming our way.”

There are two main factors that has Dimon worried: First, the Federal Reserve has signaled it will reverse its emergency bond-buying programs and shrink its balance sheet. The so-called quantitative tightening, or QT, is scheduled to begin this month and will ramp up to $95 billion a month in reduced bond holdings.

“We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years,” Dimon said. Several aspects of quantitative easing programs “backfired,” including negative rates, which he called a “huge mistake.”

Central banks “don’t have a choice because there’s too much liquidity in the system,” Dimon said, referring to the tightening actions. “They have to remove some of the liquidity to stop the speculation, reduce home prices and stuff like that.”

The other large factor worrying Dimon is the Ukraine war and its impact on commodities, including food and fuel. Oil “almost has to go up in price” because of disruptions caused by the worst European conflict since World War II, potentially hitting $150 or $175 a barrel, Dimon said.

“Wars go bad, [they] go south in unintended consequences,” Dimon said. “We’re not taking the proper actions to protect Europe from what’s going to happen to oil in the short run.”

‘Huge volatility’

Last week, during an investor conference for his bank, Dimon referred to his economic concerns as “storm clouds” that could dissipate. Presentations from Dimon and his deputies at the all-day meeting have bolstered JPMorgan shares by giving greater detail on investments and updated figures on interest revenue.

But his concerns seem to have deepened since then.

During the response to the 2008 financial crisis, central banks, commercial banks and foreign exchange trading firms were the three major buyers of U.S. Treasurys, Dimon said Wednesday. The players won’t have the capacity or desire to soak up as many U.S. bonds this time, he warned.

“That’s a huge change in the flow of funds around the world,” Dimon said. “I don’t know what the effect of that is, but I’m prepared for, at a minimum, huge volatility.”

One step the bank could take to gird itself for a coming hurricane is to push clients to move a type of lower-quality deposit called “non-operating deposits” into other places, such as money market funds, for example. That would help the bank manage its capital requirements under international rules, potentially helping it absorb a surge in bad loans.

“With all this capital uncertainty, we’re going to have to take actions,” Dimon said. “I kind of want to shed nonoperating deposits again, which we can do in size, to protect ourselves so we can serve clients in bad times. That’s the environment we’re dealing with.”

Banks having a “fortress balance sheet” and conservative accounting are the best protections for a downturn, Dimon said.

The bank has shied away from servicing a lot of federal FHA loans, he said, because delinquencies could hit 5% or 10% there, “which is guaranteed to happen in a downturn,” Dimon said.

‘Shame on you’

Dimon went on a tear during the hourlong session, barreling through topics like a “greatest hits” of his observations and gripes, often letting loose with profanity.

He lambasted investors for voting along with proxy advisors like Glass Lewis, which has disagreed with JPMorgan’s board on recent matters including executive compensation and whether the bank should separate the chairman and CEO roles in the future.

“Shame on you if that’s how you vote,” Dimon said. “Seriously, you should be embarrassed. Do your own homework.”

Companies are being driven out of public markets “because of litigation, regulation, press, cookie-cutter governance,” he added.  

Meanwhile, other critics often conflate stakeholder capitalism for being “woke,” Dimon said.  “I am a red-blooded, free market capitalist and I’m not woke,” he said.

“All we’re saying is when we wake up in the morning, we give a s--- about serving customers, earning their respect, earning their repeat business.”

https://www.cnbc.com/2022/06/01/jamie-dimon-says-brace-yourself-for-an-economic-hurricane-caused-by-the-fed-and-ukraine-war.html

will the recession, stagflation,quantitative tightening Dump bitcoin?

Therefore what we can expect is : Growth in cryptocurrency market , we have already seen a lot of news about adoption as well, even if El Salvador is not doing that great, but they are still hosting meetings for other countries seeking to invest more in Bitcoins.

Jamie Dimon is one of the most corrupt human being on the planet, and runs one of the most corrupt companies on the planet.  JP Morgan Chase bank has over 36 BILLION dollars in fines just since the year 2000 ( https://violationtracker.goodjobsfirst.org/parent/jpmorgan-chase ).  The guy would sell his own mothers soul if he thought it would benefit Chase. 

As a financial advisor I've worked directly and indirectly with most of the major financial company players, and I can tell you first hand how awful and corrupt Chase is.  I've also had several close friends who've worked for them and they all agree. 

So moral of the story being, don't fully trust anything this scumbag says.  Just remember his main goal is to profit off of you, period.

Jamie Dimon is one of the most corrupt human being on the planet, and runs one of the most corrupt companies on the planet.  JP Morgan Chase bank has over 36 BILLION dollars in fines just since the year 2000 ( https://violationtracker.goodjobsfirst.org/parent/jpmorgan-chase ).  The guy would sell his own mothers soul if he thought it would benefit Chase. 

Elon Musk thinks the same thing, it's not just him: https://www.reuters.com/technology/exclusive-musk-says-tesla-needs-cut-staff-by-10-pauses-all-hiring-2022-06-03/ He's planning on cutting his staff and pausing hiring because of what the economic projections look like. Not that Elon Musk's word should be taken with unequvical certainty, it just gives you an idea that many of the industry heads believe the economy is headed for a downturn. I agree with you, JP Morgan is probably no different than any other large banking institution, but the signs of economic hardship aren't conspiracies. High inflation in the US and EU region, slow recovery post COVID, and the war in Ukraine putting harsh strain on resources with an already strained supply chain plagued with shortages all point to a rough global economy incoming.

He actually admits this in the article quoted too, the man professing himself as a "red-blooded, free market capitalist".

I don't consider myself woke at all but that doesn't mean I think his school of Wall Street Wolf is the way to run things.

Those fines you mention? They and banks like them pay them willingly. I have someone close who says they even budget fines into their annual spending... they hire expensive consultants to work out what amount of fines they should be expected to pay. Simply because it's more profitable to pay fines than to not profit.

I hear few banks ever get that budget line into over-expenditure. That's because enforcement simply can't catch up to their misdeeds.

Bitcoin is never going to be 100% coupled with mainstream financial markets. They will have a lot of influence it, especially in short term, but there are still things like halvenings that will also shape Bitcoin's price. So we'll definitely see some bullish Bitcoin action in this economic crisis, even if it won't be a reaction to it.

As big of a scumbag Jamie is, at least he actually understand the world of finance.  Elon is not an economist nor is he a financial advisor of any kind.  Elon is notorious for speaking on things he does not understand (cryptocurrency being one).  Not to mention he loves to try an manipulate markets.  I dislike him almost as much as Jamie.


That's exactly right..the expect for these types of fines because they know they'll get away with more than they get caught, and the benefiting (profiting) of it greatly outweighs the fines.  Working in finance is actually what let me to my love for bitcoin, and namely big banks.  Having gotten to understand the industry and working with institutions the big banks are notoriously the most corrupt of all.  I hate Chase with a passion and passionately sell against them any chance I get.

It seems the current era will be defined by the polar opposite to QE (quantitative easing) which they are calling QT (quantitative tightening). With a claimed $95 billion a month in reduced federal reserve bond holdings. With the fed officially being recognized as one of the largest holders of US bonds, that shift could have a significant affect on markets.

Yeah, if he makes a good enough amount of predictions, some eventually may turn out to be correct.
I do agree that the financial world looks grim at best, still, Dimon's predictions are really worthless.
I guess that he wanted to be on the news again, and, for a change, he is not bashing Bitcoin :D

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It seems the current era will be defined by the polar opposite to QE (quantitative easing) which they are calling QT (quantitative tightening). With a claimed $95 billion a month in reduced federal reserve bond holdings. With the fed officially being recognized as one of the largest holders of US bonds, that shift could have a significant affect on markets.

If big players like banks are being conservative and switching to bear strategies. Those trends could carry over to smaller players. Which raises interesting questions of which assets are expected to perform best under future circumstances. One place to start is by keyword searching: "best recession performing assets" and allowing things to progress from there. Although I think its fair to say that most investment wisdom dates back to a pre internet age and doesn't include many modern innovations.

I think the US government will soon have serious debt servicing problems. If the Fed is actively selling bonds, someone will have to buy them actively as well. In terms of inflation, this is a guaranteed loss of money, plus sanctions risks due to the freezing of money by the Central Bank of Russia. It is unlikely that China will do this, probably Europe will have to finance the cash gap due to the large budget deficit in the US, but it has its own financial difficulties.

Damn, what a deep analysis. ;D
Interest rates going up, war in Ukraine, food and fuel prices going up, market liquidity going down. We already know this and we don't need the great "analysis" made by this clown. He's more like "captain Obvious". What could we possibly do without Jamie Dimon pointing at the obvious stuff, that is happening around the globe right now? We desperately need him and his BS opinions about everything. ;D
Jamie Dimon talking about "sunny" weather, "storm clouds" and "hurricanes". Is he a meteorologist or something? ;D
Maybe he could resign from JP Morgan Chase and become a real meteorologist.

Jamie Dimon is one of the most corrupt human beings on the planet, and runs one of the most corrupt companies on the planet.  JP Morgan Chase bank has over 36 BILLION dollars in fines just since the year 2000 ( https://violationtracker.goodjobsfirst.org/parent/jpmorgan-chase ).  The guy would sell his own mothers soul if he thought it would benefit Chase.  

As a financial advisor I've worked directly and indirectly with most of the major financial company players, and I can tell you first hand how awful and corrupt Chase is.  I've also had several close friends who've worked for them and they all agree.  

So moral of the story being, don't fully trust anything this scumbag says.  Just remember his main goal is to profit off of you, period.

Even though I know all the economic indicators are signalling towards an economic squeeze I doubt that there will actually be one. Prime reason for that is because generally when a news about a recession is so public in news everywhere there generally is no recession coming in because people will invest carefully after reading these news and big whales don't really want this. When there is a hurricane coming by the news will be, market will recover from here, good times about to come and such positive news. If you see the past trends of depressions this has been a trend always.

Bitcoin is never going to be 100% coupled with mainstream financial markets. They will have a lot of influence it, especially in short term, but there are still things like halvenings that will also shape Bitcoin's price. So we'll definitely see some bullish Bitcoin action in this economic crisis, even if it won't be a reaction to it.

I am definitely not gonna follow this guy whatsoever. This will take down all my thoughts which I have taught myself since few years that holding is future in the crypto currency space. I can’t sell my portfolio because I am not in profit. Rule of thumb is simple, you sell high and you always sell higher than your entry point. This is enough for me. If I’m selling right now just because this guy thinks future is not ready for crypto then I will wait and take my chances in similar ways I did until now. Moreover I read first few reply it seem this guy is some sort of illusionist in financial world. Lolz

Don't be so sure that it won't haapen. There are already some companies, like Tesla, that have announced that they are laying off 10% of their work-force this year. Coinbase has started rescinding those applications that have already been approved/accepted. Recession is merely starting ser. The Fed will keep tightening, raise rates, and shrink their balance sheet until something breaks before they start easing again, lowering rates, and expand the balance sheet.

I wouldn’t take anything he says seriously. He has been bearish on Bitcoin for years. Even said he would fire any employees who hold or trade any crypto. Then when crypto went up he was bullish.

Now after almost an entire year of many small and mid cap stocks crashing he is saying there will be a crash. What good is this exactly? Everybody is talking about a recession. So many people are talking about the recession which leads me to believe there won’t be one.

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It seems the current era will be defined by the polar opposite to QE (quantitative easing) which they are calling QT (quantitative tightening). With a claimed $95 billion a month in reduced federal reserve bond holdings. With the fed officially being recognized as one of the largest holders of US bonds, that shift could have a significant affect on markets.

If big players like banks are being conservative and switching to bear strategies. Those trends could carry over to smaller players. Which raises interesting questions of which assets are expected to perform best under future circumstances. One place to start is by keyword searching: "best recession performing assets" and allowing things to progress from there. Although I think its fair to say that most investment wisdom dates back to a pre internet age and doesn't include many modern innovations.

Yeah, if he makes a good enough amount of predictions, some eventually may turn out to be correct.
I do agree that the financial world looks grim at best, still, Dimon's predictions are really worthless.
I guess that he wanted to be on the news again, and, for a change, he is not bashing Bitcoin :D

Jamie Dimon is one of the most corrupt human beings on the planet, and runs one of the most corrupt companies on the planet.  JP Morgan Chase bank has over 36 BILLION dollars in fines just since the year 2000 ( https://violationtracker.goodjobsfirst.org/parent/jpmorgan-chase ).  The guy would sell his own mothers soul if he thought it would benefit Chase.  

As a financial advisor I've worked directly and indirectly with most of the major financial company players, and I can tell you first hand how awful and corrupt Chase is.  I've also had several close friends who've worked for them and they all agree.  

So moral of the story being, don't fully trust anything this scumbag says.  Just remember his main goal is to profit off of you, period.

I understand that all the macroeconomic factors are indicating a recession but my point is that generally there is a silence before a big thunder, I can't see that silence around right now, tell me one time in history when there was a expected recession? People were dancing in 2008 before the housing market collapse kicked in.

Nowhere was this being mentioned that market is fragile and macro factors indicate bearishness. I understand that today information transmission is easier but still I feel you need a lot of longs to be opened before you can do the big short.

Doesn't really seem like something to be honest, since the start of the Ukraine Russia war have economist predicted a downturn in global growth. Right now the government is at the end of it's rope when it comes to monetary policy. The usual habit for politicians since the 2008 financial crisis was to lower interest rate and print money whenever needed. For more than 10 years we have been in a ultra low interest rate environment, banks paying 0% interest on bank accounts for years.

The average saver has been losing money even with inflation rates around 1-2%. But now we are facing inflation rates of 5-10%, there is no more possibility for politicians to keep the interest rate low and print money. The risk of running into hyper inflation is high now, and once we enter such high rates it will be hard to get out of it anymore. The high volatility Jamie Dimon writes about we already have since March.

Prices are fluctuating on a daily basis, including crypto currencies. For me there is no real alternative to not be invested, holding cash is no option with the current inflation. The best we can do is to HODL and face the storm.