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JPMorgan CEO Jamie Dimon has warned that an economic “hurricane” is coming. “You better brace yourself,” he advised. “We just don’t know if it’s a minor one or Superstorm Sandy.”

Jamie Dimon on the U.S. Economy and QT

The CEO of JPMorgan & Chase, Jamie Dimon, warned about an incoming economic hurricane Wednesday at a financial conference sponsored by Alliancebernstein Holdings.

“It’s a hurricane,” Dimon exclaimed. While noting that “Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” the JPMorgan executive stressed:

That hurricane is right out there down the road coming our way. We just don’t know if it’s a minor one or Superstorm Sandy … You better brace yourself.

The JPMorgan chief said in May that there were “storm clouds.” However, he has now revised his forecast. “I said there’s storm clouds, they’re big storm clouds, they’re — it’s a hurricane,” he cautioned. “JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”

Dimon is concerned about several key issues. Firstly, the Federal Reserve is expected to reverse its emergency bond-buying programs and shrink its balance sheet, and the quantitative tightening (QT) is scheduled to begin this month.

The JPMorgan boss opined:

We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years.

He explained that central banks “don’t have a choice because there’s too much liquidity in the system … They have to remove some of the liquidity to stop the speculation, reduce home prices and stuff like that.”

Dimon is also worried about the Russia-Ukraine war and its impact on commodities, including food and fuel. He warned that oil could potentially hit $150 to $175 a barrel.

Warning that “wars go bad” and there are “unintended consequences,” the executive stressed:

We’re not taking the proper actions to protect Europe from what’s going to happen to oil in the short run.

Last month, Dimon told Bloomberg that the Federal Reserve should have moved sooner to raise interest rates. He admitted that he is worried about the Fed starting a recession.

A growing number of people have recently warned of a recession, including the Big Short investor Michael Burry, Allianz’s chief economic advisor Mohamed El-Erian, and Tesla CEO Elon Musk.

Blackrock, the world’s largest asset manager with nearly $10 trillion under management, recently explained: “If they [the Fed] hike interest rates too much, they risk triggering a recession. If they tighten not enough, the risk becomes runaway inflation.”

What do you think about JPMorgan CEO Jamie Dimon’s warning? Let us know in the comments section below.

3 thoughts on “JPMorgan CEO Jamie Dimon Warns of Incoming Economic Hurricane — Says ‘You Better Brace Yourself’

  1. Disclaimer:

    For those who are unfamiliar with the term Internet of Blockchains, this post is about the Inter Blockchain communication Protocol (IBC) or in other words: The Cosmos Ecosystem

    Review:

    The Inter blockchain communication protocol has grown to connect ~50 self souvereign blockchains into one seemless, interoperable ecosystem in 2022. Notable Blockchains include the Cosmos HUB, Osmosis, Juno, Secret network, Evmos & many others.

    While Terra (Luna) has been a part of the Cosmos ecosystem & has been built upon the Cosmos SDK, the modular nature of IBC allowed for the wider ecosystem to contain the problematic event to the Terra chain. Nonetheless, economic damages have of course occured due to the rapic decline in value of both Luna & UST.

    Notably, both Bitcoin and Ethereum have been connected to Cosmos in 2022 and are available for purchase throughout the ecosystem.

    Moreover, the underlying technology of both the IBC as well as the Cosmos SDK has worked flawlessly throughout 2021 & 2022.

    Statistics:

    The Cosmos SDK is the most widely adopted underlying blockchain development kit out there, which does not only include the 50 chains that are already IBC connected but also the likes of Polygon, Binance Smart chain as well as Thorchain. This does not mean, that chains that are not utilising the Cosmos SDK cannot connect to IBC though – on the contrary! Both POS & POW chains of any variety can connect to IBC and many chains are already working on joining the biggest of Crypto Families!

    Cosmos Ecosystem 30 day stats:

    The Cosmos Ecosystem is currently processing around 5.000.000 cross chain transfers a month with a volume of around 10 billion USD. In addition, there are millions upon millions of onchain transactions each month of course.

    News:

    Most recently and after some delay, EVMOS, the Cosmos SDK EVM compatible IBC connected blockchain has launched successfully (including a significant airdrop) and has quickly become a vibrant part of the wider cosmos ecosystem. Some Projects have already launched their applications upon Evmos and many more are expected to expand their services from Ethereum to EVMOS in the future.

    Crescent Network (formerly gravity dex) has migrated to becoming its own blockchain DEX and has had a successful launch as well (including a significant airdrop).

    … there are bazillions of other news but I cannot cover all of them, these were the two most significant ones to me anyway.

    Conclusion:

    full disclosure: I just love the Cosmos ecosystem and I think that everyone who believes in Crypto should already be a part of the Cosmos ecosystem as it provides everything one could want from it imo.

    anyway, until next time.

  2. There has been some buzz around a new crypto bill that is set to be introduced on 7th. Some reports say it will classify most tokens as securities.

    So I decided to give it a read just to see what the bill contains…

    First of all, it is utter nonsense that the bill is a death blow for ICO coins. The bill creates a new classification of “ANCILLARY ASSETS” as part of digital assets.

    Then, it creates an exclusion for ancillary assets, as long as the company issuing them makes certain disclosures. For instance, the issuer has to disclose the details of everyone holding >10% of the token.

    Under the heading “TITLE III—RESPONSIBLE SECURITIES INNOVATION”, ancillary asset is defined as :

    The term ‘ancillary asset’— “(i) means an intangible asset that is offered, sold, or otherwise provided to a person in connection with the purchase and sale of a security through an arrangement or scheme that constitutes an investment contract, as that term isused in section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)); and “(ii) may include a digital asset, as defined in section 9801 of title 31, United States Code, that is used to facilitate the governance of a distributed ledger technology network or decentralized autonomous organization. “(B) EXCLUSION.—Except as provided in subparagraph (A)(ii), the term ‘ancillary asset’ does not include an asset that provides the holder of the asset with any of the following rights in a business entity: “(i) Voting rights with respect to that entity. “(ii) Rights to interest, dividend payments, or profits with respect to that entity. “(iii) A debt or equity interest in that entity. “(iv) Liquidation rights with respect to that entity

    The definition of ancillary asset includes all ICOs which are investment contracts.

    Further the bill creates an EXEMPTION for this ancillary asset from securities laws provided the ancillary asset issuer makes certain disclosures.

    “(4) TREATMENT OF ANCILLARY ASSETS.— “(A) IN GENERAL.—Notwithstanding any other provision of law, if an issuer issues a security through an arrangement or scheme that constitutes an investment contract, as that term is used in section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)), is subject to paragraph (1), (2), or (3), and is in compliance with the periodic disclosure requirements under subsection (c), an ancillary asset provided directly or indirectly by the issuer shall be presumed not to be a security under— “(i) section 3(a); “(ii) such section 2(a)(1); “(iii) section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)); “(iv) section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)); or “(v) any applicable provision of State law.

    This means, if an issuer runs an ICO and raises funds via a standard methods like SAFTs and issues a “security” token, that token is not to be treated as a security as long as the issuer fulfils some reporting disclosures (like who owns >10% of the asset, finances of the company etc..)

    This seems to be a massive greenlight for ICOs and SAFTs in general as long as they abide by consumer protection disclosures.

    Bill draft also describes DAO

    SEC. 204. DECENTRALIZED AUTONOMOUS ORGANIZATIONS.

    (C) DECENTRALIZED AUTONOMOUS ORGANIZATION.—The term ‘decentralized autonomous organization’ means an organization— “(i) which utilizes smart contracts (as defined in section 9801 of title 31, United States Code) to effectuate collective action for a business, commercial, charitable, or similar entity, “(ii) governance of which is achieved primarily on a distributed basis, and “(iii) which is properly incorporated or organized under the laws of a State or foreign jurisdiction as a decentralized autonomous organization or any similar entity.”.

    Few reports say the bill will result in most cryptos being labelled as securities. From the above sections of the bill, it seems the opposite is happening.

  3. What the title says.

    What's your favourite chain to build on? And why is that?

    Deploying in Ethereum is expensive and building on is hard because the best option is to do it off-chain (leave the main chain for transactions only), and now there are a lot of competitors in the space, some are better at some other things, none of them are as decentralized as BTC or ETH, so knowing this, what chains are you guys building on and why other than cost efficiency? Do you (developers) really care about decentralization, censorship resistance, privacy, ownership, and everything crypto really stands for or do you only care for the quick buck and the crypto market culture?

    Lets talk about the technology and not the price for a while.

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