JPMorgan’s Jamie Dimon warns current markets are tied to the 2008 financial crisis
The Big Money Show discusses the potential fallout from President Donald Trump’s credit card interest rate cap.
JPMorgan Chase CEO Jamie Dimon he issued a warning that some of the conditions in the financial markets reminded him of the years leading up to the 2008 financial crisis.
“Unfortunately, we saw this in ’05, ’06, ’07, almost the same thing,” Dimon said Monday in remarks at JPMorgan Chase’s annual event. investor day. “The rising tide was lifting all boats, everyone was making more money, people were using energy. The sky was the limit.”
“I think that today, a rising tide lifts all boats. My opinion is that people are getting a little comfortable that this is true – these high costs of goods and high prices and that we don’t have that kind of problem,” he added.
“I don’t know how long it will be good for everyone. I see a number of people doing stupid things. They are doing stupid things to create. [net interest income],” Dimon added without referring to any specific institutions, while noting that JPMorgan Chase is “extremely cautious” and that the firms “will adhere to our rules.”
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JPMorgan Chase CEO Jamie Dimon warned that there could be risks building in financial markets. (Al Drago/Bloomberg via Getty Images)
He went on to say that the main competitors of the nation’s central bank are back, including competitors from Europe and Japan. He said that was “good for the world” but warned that “I just don’t know how long it will be good for everyone.”
Dimon said “there are always surprises in the credit cycle” and that certain sectors may appear more stable than they are in the lead-up to a crisis.
“This time it is possible the softwarebecause of AI,” Dimon said. “There are tectonic plates moving beneath it, causing the industry to be challenged.”
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| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 303.30 | +6.00 |
+2.02% |
“There will be a cycle one day. I don’t know what confluence of events will cause that cycle. My concernhigh
Last fall, Dimon issued a similar warning about credit markets as JPMorgan Chase took a $170 million bailout following the bankruptcy of subprime auto lender and dealer Tricolor.
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Dimon warned last fall about potential problems in the credit markets. (Jenah Moon/Bloomberg via Getty Images)
He also noted that bankruptcy auto parts maker First Brands has suggested there may be debt problems looming in the economy.
“If you see one cockroach, there are probably many, so everyone should be warned about this one,” Dimon said at the time. “First of all Brands, I would put them in the same category, and there are a few others that I have seen put in the same categories. We always look at these things, and we are not omnipotent – we make mistakes too.”
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“We’ve had a credit bull market right now in the best part since 2010,” he added. “These are the first signs that there may be an overshoot as a result. If we do have a downturn, you’re going to see a few more credit crunches.”
