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Why did the biggest American banker issue warnings to “get ready for the next economic hurricane”?


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Why did the biggest American banker issue warnings of “getting ready for the next economic hurricane” ?, Today, Saturday, June 11, 2022 10:29 pm

Why did the biggest American banker issue warnings to “get ready for the next economic hurricane”?

Published by Khalid bin Ali Al-Madrafi on 06-11 2022 in Riyadh

Depression and economic downturn are inevitably coming to the world, and the magnitude of its effects will vary from one country to another, lasting two to four years, but it will be different from the Great Depression of the 1930s. Twentieth century.
“Let’s prepare for the next economic hurricane due to the Federal Reserve and the Russo-Ukrainian war,” began Jimmy Dimon, chairman of the board of directors of JPMorgan Chase, the largest of the four largest American banks. Jimmy Dimon, a leading executive banker and chairman of JPMorgan Chase, a leading executive banker on the American network CNBC, published this June 1 issue. The map of the article in view of the crisis was a multi-point statement.
The most important thing in the article by CNBC’s Finance and Banking Correspondent Hyo Soon: There are two main factors that make Dimon worry, first is the amount of austerity initiated by the Federal Reserve, which is the brief monetary policy he applies. Reduce the level of liquidity within the economy, increase in commodity and oil prices due to the Second Russo-Ukrainian War, and added that “a barrel of oil could reach $ 150 or $ 175”.
I do not agree with him that the economic downturn and its impact on the level of energy demand – in the event of the next recession – will not reach the price he quoted, and that Dimon “inflation has reached its highest level in decades; supply chain disruptions and an epidemic.” The Federal Reserve is inadvertently fighting higher prices to sow fears of a recession.
Timon openly called for “preparing us for the next hurricane”, so he said, “We at our bank are going to be very conservative in our balance sheet and advise investors to do the same.” “We do not have a Fed like this, because many aspects of the central bank’s mitigation measures have backfired, including negative rates, which he called a” big mistake, “Dimon said, adding that the scale of the disaster was extraordinary. Not only that, he also pointed out in the article that history will be written about the Great Depression for the next fifty years, as old history will be forgotten and new will be dated! One out of every three U.S. citizens has a savings account, but in light of the expected recession they will not be able to save, but will be content to spend without saving, meaning that one in every three will save, what individuals do is fail to pay their rent, and fail to pay off existing car loans; These issues will gradually increase with further future consequences. Recession crisis.
On (April 22, 2020) I wrote an article in Arabic: “Corona … the straw that broke the back of the economy”, which summarizes, “Depression and economic downturn inevitably come to the world, and the magnitude of its effects varies from one country to another, it is two The first four years will last, but will be different from the Great Depression of the twentieth century, because in our modern age the changes are better than those depressing conditions, due to the development of economic solutions and the reliance on advanced technology, the huge cash reserves and the diversification of its new economic sectors. Let it be good.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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