Chase CEO Jamie Dimon was interviewed by 60 Minutes host Leslie Stahl. Ms. Stahl tried her best to draw a pessimistic response from Mr. Dimon. But the dogged reporter could not shake the financier’s optimism.
Lesley Stahl: The stock market is going through the roof, and yet manufacturing production is down over the past year. Wage growth is slowing. So when you look at the state of the economy right now, what do you see? Do you see strength? Do you see petering out?
Jamie Dimon: The consumer, which is 70% of the U.S. economy, is quite strong. Confidence is very high. Their balance sheets are in great shape. And you see that the strength of the American consumer is driving the American economy and the global economy. And while business slowed down, my current view is that, no, it just was a slowdown, not a petering out.
Lesley Stahl: You sound pretty optimistic about the economy.
Jamie Dimon: Yeah. Well, I am.
Lesley Stahl: Well what about the issue of unpredictability right now on the economy. Is that worrisome to you. It must be worrisome to every businessman in the country.
Jamie Dimon:The world is unpredictable. I think it’s a mistake.
Lesley Stahl: Well, more unpredictable than usual.
Jamie Dimon: No. If you look at history, if you take a newspaper and open it at any month of any year, you’d have the same list of hugely unpredictable things.
Lesley Stahl: Why doesn’t it feel that way? Why does it feel as if we were in a particularly uncertain time?
Jamie Dimon: Human nature looks at fear and reacts to the short run. But again there’ve been like 50 or 60 international crises since World War II. Only one really affected the global economy in the short run.
Lesley Stahl: What was that? Vietnam?
Jamie Dimon: No. Vietnam did not. Vietnam obviously totally changed America, but it was the oil crisis in the Middle East in 1973 when oil went from 2 to 20 and we had a global recession. There’ve been wars with India and Pakistan, we got Iraq, Afghanistan, Korea, Vietnam, China had wars with Vietnam, China had wars with Russia. None of those things affected the global economy. And the other thing is: people look at the negatives. There are positives. The Berlin Wall went up, the Berlin Wall came down. So…
Lesley Stahl: And the economy wasn’t affected, is that what you’re saying?
Jamie Dimon: Barely. This is the most prosperous economy the world has ever seen and It’s going to be a very prosperous economy for the next 100 years. __ https://www.cbsnews.com/news/jamie-dimon-jp-morgan-chase-ceo-the-60-minutes-interview-2019-11-10/ via Lidblog
Dimon’s optimism is paralleled by Peter Zeihan — at least when it comes to the US economy. According to Zeihan, even the election of political flakes such as Bernie Sanders or Elizabeth Warren would not knock the US off its economic perch. But with one proviso: any ban on oil & gas fracking is a no-no.
If a politician is truly serious about a ban on fracking, he should be liquidated with extreme prejudice. 😉
Trump US Economic Boom?
… median household incomes under Donald Trump have soared from $61,000 to an all-time high of $66,000 in less than three years into the Trump presidency. This is tremendous news and documents substantial middle-class prosperity in Trump’s first three years in office. __ Source
The US economy seems to be doing well since Donald Trump was elected US President — although you would never know it by reading the yellow press. And yet news does get out:
In addition to the strongest job market in half a century, Trump achieved the most significant criminal justice reforms in at least a generation last year, addressing a long-standing priority of many Democratic voters. The First Step Act reduces sentences for certain drug felonies and other non-violent crimes, fixes the sentencing disparity between crack and powder cocaine, and allows prisoners to more easily earn early-release credits for participating in educational programs that help prepare them for life outside prison.
…As the data shows, jobs are plentiful, and wages are rising – particularly for working-class Americans – even as the global slowdown has kept GDP growth from matching the strength of the labor market. Third Quarter corporate earnings were stronger than expected and the stock market reached new all-time highs last week, raising the value of retirement plans and sending consumers into the holiday shopping season with more money to spend.
… African American unemployment reached an all time low of 5.4 percent in October, resulting in the smallest gap between black and white unemployment rates ever recorded. The Hispanic unemployment rate likewise reached an all-time low of 3.9 percent in September, and the Hispanic-American labor force participation rate reached its highest level in a decade the following month.
The left is fanatical about enforcing equal outcomes, and yet Democrats are trying desperately to get rid of a president whose policies have reduced economic disparities between racial groups to the lowest level in American history.
Meanwhile in South America, the 20 year old “pink tide” is experiencing severe gas pains. When people are forced to actually experience communist dictatorships — instead of merely admiring them from afar — they tend to become a bit averse.
The US House of Representatives has taken a Stalinist turn in its blind rush to crucify Trump and distract voters from the economy. But those rusty spikes may be turning back toward Schiff and Pelosi — to say nothing of Biden. The overlords who ordered up this impeachment theatre may be willing to burn not just a few pawns, but perhaps an entire generation of foot soldiers. Desperation can do that.
Meanwhile, hope for the best while making provisions for the worst. Become as Dangerous as you can, and do what you can to boost the resilience and anti-fragility of your families and communities. Interesting times.
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