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Jamie Dimon says at minimum coronavirus will be be repeat of 2008

By tovarichpeter follow tovarichpeter   2020 Apr 6, 10:47am 458 views   4 comments   watch   nsfw   quote   share    


Jamie Dimon said the coronavirus pandemic will lead to a major economic downturn and stress mirroring the meltdown that nearly brought down the U.S. financial system in 2008.


“At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008,” the chief executive officer of JPMorgan Chase & Co. said Monday in his annual letter to shareholders. “Our bank cannot be immune to the effects of this kind of stress.”

The 23-page letter, his shortest since 2008, came less than a week after Dimon told staff he’d returned to work after undergoing emergency heart surgery. It was his first public commentary about the coronavirus since the bank’s investor day on Feb. 25. At the time, the outbreak still seemed a distant threat, with fewer than 60 cases in the U.S. and none in New York.
1   Hircus   ignore (0)   2020 Apr 6, 11:06am     ↓ dislike (0)   quote   flag      

JPM is up about 6% today. So are other big banks. So is the s&p.

Seems like this impending recession that will affect his bank was fully priced in.
2   clambo   ignore (5)   2020 Apr 6, 12:21pm     ↓ dislike (0)   quote   flag      

It’s not going to be as damaging as 2008.

I don’t expect some businesses to come back as quickly as others.
The cruise business is toast, but people won’t lose their houses over it.

Wells Fargo stock sucks but not as bad as Wachovia which went to nearly zero in 2008.
Interesting that Buffet is a genius but he loved Wells Fargo stock and now it’s a pos.
3   Hircus   ignore (0)   2020 Apr 6, 12:39pm     ↓ dislike (0)   quote   flag      

clambo says
The cruise business is toast


That's what I thought, but the Saudi's just bought an 8.2% stake in Carnival for their Sovereign Wealth Fund. That's some big money that seems to think otherwise.

I wonder if maybe they got a "hot tip" that they should bet on them getting a bailout courtesy of the us govt...

But it could be some other play too, where they get some kinda technical benefit from owning a sizable stake in certain us companies.
4   WookieMan   ignore (7)   2020 Apr 6, 12:51pm     ↓ dislike (0)   quote   flag      

Hircus says
clambo says
The cruise business is toast


That's what I thought, but the Saudi's just bought an 8.2% stake in Carnival for their Sovereign Wealth Fund. That's some big money that seems to think otherwise.

I wonder if maybe they got a "tip" from that they should bet on them getting a bailout...

But it could be some other play too, where they get some kinda technical benefit from owning a sizable stake in certain us companies.

Cruise ships use massive amounts of oil/fuel. Propulsion and power generation. Cargo loading and unloading. All mostly with oil products. Wouldn't be totally shocked at all to find out they use 2-3% of the worlds oil. Maybe more? Land based power sources are significantly more efficient than a cruise ship.

Carnival has something like 250 ships. Even the smallest represents probably 10-20k fueled up cars in a month and each ship uses that weekly. Complete guess mind you as far as quantity for ship to car ratio. Basically they use a shit ton of fuel. If they stay afloat (pun intended) then Saudi makes money off the cash invested AND off oil not being driven further into the ground. Kind of makes sense.

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