JP Morgan’s Dimon Admits “Fed Liquidity Is Propping Up Stocks”

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JP Morgan CEO Jaime Dimon acknowledged that the stock market is rising only because the Fed is using taxpayer dollars to save large companies. He said, “The Fed’s liquidity, bringing out the bazooka, is propping up stock prices (as well as all other asset classes).” That may sound like a good idea, but these bailouts are rewarding bad behavior by banks and their favored businesses, and it is creating massive debt that will destroy the nation.

JPMorgan CEO Jamie Dimon told the Deutsche Bank Global Financial Services Conference attendees (virtually) that he sees a “good chance” of a fairly rapid economic recovery and is hoping things pick up in 3Q after what will be weak GDP this quarter.

“I give it some pretty good odds,” Dimon said. “The government has been very responsive, the Federal Reserve has been very responsive. Large companies have a huge wherewithal, hopefully we’ll keep the small ones alive long enough that most of them get back into business.”

While the all-seeing CEO warned that JPMorgan is “prepared for a scenario where recovery is slower,” Dimon implicitly pointed out that for now there’s nothing to fear but fear itself because “The Fed’s liquidity, bringing out the bazooka, is propping up stock prices (as well as all other asset classes).”

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Horizon
Horizon
2 years ago

Can you please give use an analysis of what to do with our stocks? A poor populace bodes ill for this country. I’m unsure what to do.