Jamie Dimon’s Bizarre Idea About Why Recovery Stalled

jamie dimonAccording to JPMorgan Chase CEO Jamie Dimon, the recovery has stalled because of strict banking regulation.

I’m not making this up.

At a financial conference today, Dimon told Fed chief Ben Bernanke there’s no longer any reason to crack down on Wall Street. “Most of the bad actors are gone,” he said. “[O]ff-balance-sheet businesses are virtually obliterated, … money market funds are far more transparent” and “most very exotic derivatives are gone.”

Dimon said he worried that financial reform legislation is “holding us back at this point” from a stronger economy.

Someone should remind Dimon that a few years ago, before any stricter regulation or oversight went into effect, he and his colleagues on the Street almost eviscerated the American economy. Remember, Jamie? The Street’s antics required a giant taxpayer-funded bailout.

JPMorgan Chase and the other giant banks on Wall Street are bigger than they were before. And now they’re certain they’re too big to fail. Without far stricter regulation they have every incentive to repeat their binge.

Dimon believes most of the bad actors are gone. To the contrary, none of the truly bad actors has been prosecuted. In fact, most are making more money than ever before.

Off budget businesses obliterated? Funds more transparent? Exotic derivatives gone? Dimon still doesn’t get it. The only reason there’s been any progress at all to date is because rules have been tightened and regulators are more vigilant. But at this very moment the banks — including JPMorgan Chase — are lobbying heavily to relax the rules so they can return to their old ways.

Robert ReichThe recovery has stalled because most Americans are still in the gravitational pull of the recession — unable and unwilling to buy enough to keep the economy going. And that’s largely because the terrible consequences of what Dimon et al did to the economy are still being felt by most Americans.

On what planet has Jamie Dimon been living?

Robert Reich
Robert Reich’s Blog

Published by the LA Progressive on June 8, 2011
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About Robert Reich

Robert B. Reich is Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written eleven books, including The Work of Nations, which has been translated into 22 languages; the best-sellers The Future of Success and Locked in the Cabinet, and his most recent book, Supercapitalism. His articles have appeared in the New Yorker, Atlantic Monthly, New York Times, Washington Post, and Wall Street Journal. Mr. Reich is co-founding editor of The American Prospect magazine.

Reich has been a member of the faculties of Harvard’s John F. Kennedy School of Government and of Brandeis University. He received his B.A. from Dartmouth College, his M.A. from Oxford University, where he was a Rhodes Scholar, and his J.D. from Yale Law School.

Comments

  1. Crystal says:

    Yes. I just posted a comment on a business site which provided part of Mr. Dimon’s remarks. What a joke. What a circus. The only people who seem to buy what he’s selling are the Fox Faithful.

  2. Dimon doesn’t get It? No, I think it is you Mr Reich and the Obamanics policies you pursue that are the problem. Just look at your track record- no recovery. People in Ivory towers don’t play in the real world. There is no confidence in our President ,nor you Mr. Reich. As for Nate, it’s the government that’s screwing the country and everyone knows it except the brain dead socialist left.

    • Crystal says:

      @DEH … Actually, you should read some of the investment oriented, very capitalist websites. It’s most certainly not just the “…..left” who knows what the banks have done and continue to do to not just this country, but global markets. I suppose just about anyone who consults sources other than Fox would know this. Besides that, it is common sense.:)

      If there is loss of confidence in Obama, it comes from two things – Fox propaganda or everyone else who thinks he’s doing too much of the actual things Fox likes – extending tax cuts, etc.

      Not that I think facts or common sense will persuade you…

      • Actually Cyrstal I read a lot and am in the investment world ( i.e. I know what I’m talking about). If there ever was propoganda it’s what you are buying- Fox lies is propganda that Soros and the left want you believe. You show all the colors of leftist thinking- big bad capitalists and “getting personal” with your comments. Perhaps you could learn to read more than just leftist material and see how the government is also a big part of the problem (unless you are a socialist).

        If you can’t see that Obama is a disaster for this country then perohaps you are okay with that. Apparently you would follow him anywhere, including over a cliff. The record speaks for itself, if facts or commen sense appeal to you…..

  3. He knows full well he’s lying , he’s just hoping to get another chance to screw America again .

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