Why do people worship Jamie Dimon? Because unlike the vast majority of CEOs, he’s forthright. Like Warren Buffett, another justifiably worshipped CEO, Dimon also has the unusual and admirable habit of admitting that things are going to get worse.
Today’s money quote, for example:
“If you’re not fearful, you’re crazy.”
Remember any other CEO saying anything like that?
Meanwhile, JP Morgan itself is demonstrating why Hank Paulson’s latest bailout plan isn’t working: Because banks have now decided that, capital or no, they’re done lending money to people who can’t repay it. And US consumers are strapped:
JPMorgan, which expects home-equity losses of as much as $800 million over the next several quarters, cut originations 51 per cent in the third quarter to $2.6 billion (Bloomberg).