Jamie Dimon just gave a very optimistic speech on CNBC.
He refuted rumours that the S&P downgrade will make it harder for banks like JPMorgan to make money on CNBC right now.
“The S&P downgrade is just an opinion,” he says. The market leaders he knows don’t use the S&P to make their decisions, he says.
He also added, “The U.S. needs to show fiscal discipline.”
But he says, “I’m hopeful that we’ll” start to do that soon.
Then he brought out the good ol’ American spirit.
“I think we need America to do what America used to do when times got tough… They rolled up their sleeves… They didn’t scapegoat. We need coherent, consistent policy… A lot of our policy is completely incoherent and inconsistent, made in the middle of the night.”
The real feel-good moment of his speech: THIS WILL PASS… AND AMERICA’S ECONOMY WILL BLOW YOUR SOCKS OFF.*
Whether it’s in a year, 6 months, nine months, he doesn’t know, but he says: I’m very optimistic.
Regulation-wise, he says, we’re changing everything at once he says – and what’s the outcome? We don’t know. No business would do that, he says. Of course that’s a reiteration of what Dimon said to Ben Bernanke in June.
But Dimon corrected some of the misinterpretations of what he said. “A lot of the regulations are going to hurt small banks.”
And “tax policy – only at the margin – is driving business overseas.”
Regulations are making it tougher for banks, he admits, but he’ll work it out. And what Meredith Whitney said this morning – that banks are like zombie banks right now – hogwash he says.
He says he’s totally comfortable with his exposure to the Eurozone, and he doesn’t think there’s going to be a worst-case scenario.
Counter-party exposure is virtually the same as credit exposure he says, and he’s not concerned about it.
What’s interesting is to compare his performance right now to Brian Moynihan’s yesterday. Just look at how Bank of America stock is performing right now to see how that went.
*Jamie Dimon’s exact words: “THE FUNDAMENTAL STRENGTH OF THE NATION IS STILL THERE. WE ARE JUST STUCK. STUCK WITH ALL THE — SOME LEGITIMATE. WE HAVE PROBLEMS IN EUROPE. PROBLEMS IN — I THINK WE HAVE UNCOORDINATED POLICIES TAKING PLACE. PEOPLE ARE SCARED FROM A BUNCH OF THINGS BUT I THINK THIS WILL PASS TOO. I DON’T KNOW WHEN. THREE MONTHS, SIX MONTHS, NINE MONTHS OR A YEAR. BUT IT WILL PASS AND WHEN THE ECONOMY IS GOING AGAIN, IT’LL BLOW YOUR SOCKS OFF.”