Posted on 04/23/2024 12:04:23 PM PDT by CFW
JPMorgan Chase (JPM) CEO Jamie Dimon is concerned the US economy could be in for a repeat of the problems that hampered the country during the 1970s.
"Yes, I think there’s a chance that can happen again," he said during an appearance Tuesday at the Economic Club of New York.
The economy in that troubled decade was constrained by stagflation, a combination of low growth and high inflation, and Dimon said such a risk exists again.
"I worry that it looks more like the seventies than we've seen before," he added during a question-and-answer session with Marie-Josee Kravis, chair of the Museum of Modern Art and wife of KKR co-founder Henry Kravis.
"There are circumstances in which it'll look more like the seventies than what we've had for the last 20 years."
[snip]
Dimon returned to some other familiar subjects during his discussion Tuesday, from his concerns about large amounts of government spending and efforts by the Fed to shrink its balance sheet as well as the ongoing wars in the Middle East and Ukraine and their potential to disrupt essential commodities markets, migration, and geopolitical relationships.
(Excerpt) Read more at finance.yahoo.com ...
The media is so convinced Bidenomics is great that most outlets publish an article each day informing you of that fact.
The current economy reminds me of the 70’s every day. Every single day.
When coining the term “Bidenomics” and instructing the media to use it to praise the Biden economy, the administration made a rookie mistake and failed to purchase the “Bidenomics.com” website.
America For Prosperity immediately purchased it and are a bit more honest about the state of Biden’s economy.
We have credit card debt at all time highs.
Just recently Discover card showed that their unrecoverable debt percentage doubled from about 3% to just under 6%.
So, people have charged their credit cards to the max and then have said to the credit company that they will not be able to pay the bill at all. So, go ahead and send it to the collection agencies.
This is one step away from bankruptcy.
Meanwhile you have global banks increasing their gold reserves. Which is why it went to $2400/oz. Another all time high. This is because these foreign banks are lowering their US dollar holdings.
So, the fact that Jamie Dimon who runs the largest bank in the USA. Which holds about 10% of all US deposits is concerned. You might call that a WARNING.
do u remember what the interest rates were at their peak?
If we are talking the late 70’s it was a dream, made a profit of over 500% in 3 years investing in little pieces of land, my first two investments.
The 1970s? More like the 1930s. 1938 in Germany, to be exact.
Aren’t the 70s when Sniffer entered the Senate?
Advances in technology and business have been made but the bright attitude has not returned across the country. Instead it has been concentrated in pockets where most of the financial gains have gone. Some have indeed done well across the board I can't argue that. For the first time though many parents don't expect their children to be better off than they are. In that there may indeed be that they don't need to be but still, people what that possibility.
Adding to the lack of wide spread participation in heady good times the gooberment has become an ever greater burden. Every corner people who are trying to make an honest traditional living turn there is some new law or regulation or tax or social program or social awareness or even private social privation standing in their way. The loss of that hopeful and happy middle and near middle class is why the 70s are returning.
Without a vision the people perish. This has been cited as one of the most mis-applied and mis-understood passages of the Bible but so what? It fits. For some of us, the half of the nation that does not want to rely on someone to take care of us, we had some leadership and vision for a struggling halting and arrested four years from '16 to '20. Now we are back to the dismal and constrained [constipated?] and punishing and discouraging years of obama and biden. Each such crushing administration takes us down another peg and makes recovery more unlikely or at least a hell of a lot harder.
I have seen the cascade effect of this default and deflation before at a regional level after the oil boom and people underwater on houses just pitched the keys in the flower bed and left. I have also seen families split with the breadwinner living in a hovel where his next job is and the rest staying with the house hoping it will sell soon at a successful price.
Stagflation is a term used to describe a stagnant economy hampered not only by slow growth but by high inflation as well.[2] While this combination may seem counterintuitive, it proved real during the 1970s and early 1980s when workers in the U.S. and Europe were subjected to high unemployment as well as the loss of purchasing power.
https://www.investopedia.com/ask/answers/09/inflation-vs-stagflation.asp
Didn’t Japan have a whole generation of slump after riding high on their auto exports, etc?
Congress makes more cash on insider trading. Even MTG cashed in on Ukraine. I am sure the CEO is just preparing for another bailout.
Do tell, please, because I was a kid back then, so interest rates weren’t what I was paying attention to. I observed how hard it was for my family to make ends meet. Every trip in the car was planned so that gas wasn’t wasted. Nothing was wasted. Every bill was watched closely. There were no frivolities. Life was a struggle, and it often put my dad in a bad mood.
Every time I go to the grocery store now, I remember those days. When I go run errands, I plan out my route just as we did back then. I’m fortunate that we aren’t as hard up as my parents were raising 6 kids, but there’s a lot today that reminds me of how tough things were back then.
I see my own adult children struggle to pay their bills. Even though they are happy and have decent jobs, they live paycheck to paycheck. The youngest is the most careful about what he spends money on.
I was in early twenties. Remember having lunch everyday with co workers my age and they ALWAYS complained about interest rates of 17 percent which meant they could not buy a house.
I remember my bf telling me (before it got so high) to buy and buy and buy. So I loaded up to beat the cost of inflation.
I’ll never forget those days.
Went trough that once after getting my 1st job. Jimmy Carter was blind sided by the Iranian affair and muzzies cutting off our oil. We’re heading down the same path thanks to this incompetent boob of a president. Everyone knows that oil is what drives our economy.
Prime, at the peak was 21%.
When I moved to NH in 1985 there was a guy who still owned a house in Houston that was rented. I asked what he was making on it? He said it was almost a break even. However, if he had to sell it he would have lost twenty grand. This was when a house in Houston was $50K.
I bought my first house here in 1990. Paid $125K. I finished the upstairs myself and sank another $15K into it. I sold it five years later for $127K.
I know a guy in AZ who bought a spec house in 2004. He dropped the keys off at the bank a year or two later. He lost his down payment and the mortgage payments but nothing else. A couple years later houses in Phoenix were selling for half of what they had been.
I understand that you can now buy a house in Austin from DR Horton for almost a hundred grand less than it was a year or so ago. In the same subdivision.
Somebody has to lose money for the market to correct. Stocks, bonds, real estate, commodities. They all go up and down.
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