JAMIE DIMON, CEO JP MORGAN – A RAINBOW OF ROLE MODELS {WEDNESDAY SERIES}
I celebrate ACHIEVEMENT EVERY DAY! WEDNESDAY’S “A Rainbow of Role Models,” I do not see race, skin color, religion, sex, attractiveness (ok, I do like beautiful ladies), age, or any other nonsense. I love learning from inspirational people that inspire me to drop MY EXCUSES and JUST DO IT! Role models who stretch my ambitions and model GIVING BACK!
There is dignity in achievement and success—in becoming a great factor in civilization.” Carter G. Woodson.
I hope you will share these short articles; perhaps a few people will be curious to learn more.
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
JAMIE DIMON – A RAINBOW OF ROLE MODELS {WEDNESDAY SERIES}
Since 2005, Jamie Dimon has held the role of CEO of JPMorgan Chase, one of the largest banks in the United States. Several publications have named him one of the world’s best CEOs.
I read Jamie Dimon’s annual letters to learn about the U.S. and global economy. Mr. Dimon speaks in plain English. When asked by House Financial Services Committee – “Have you stopped lending to fossil fuel companies?” He said, “Absolutely not, and that would be the road to hell for America.” In a subsequent interview, he went on to clarify what he meant: “We need secure, reliable energy food and not just us, every country. And you know, when gas prices and oil were too high, all that happened is coal plants are being turned on. CO2 got worse, countries are panicking, and the energy supply is precarious. My point is look I believe we should be doing things about climate CO2, but it’s not a simple thing like just stop financing them. If I could stop financing a good oil company, you know that isn’t going to help. We need pipeline permits. We can’t even get the permits to build solar. We needed to get a pipeline to get gas just down to Louisiana so they could ship it to help our allies in Europe. We need a very comprehensive policy, and I don’t think we have that right yet.”
I wish Mr. Dimon would run for the U.S. Presidency. He describes himself with the heart of a Democrat but the fiscal mindset of a Republican {maybe the old Republican party}.
Below I provide
- Critical Passages from his 2021 Letter
- A link to the entire letter
- A short television interview. If you only select one, watch the interview!
Critical Passages of Dimon’s 2021 Letter
“We are facing challenges at every turn: a pandemic, unprecedented government actions, a strong recovery after a sharp and deep global recession, a highly polarized U.S. election, mounting inflation, a war in Ukraine and dramatic economic sanctions against Russia. While all this turmoil has serious ramifications on our company, its effect on the world—with the extreme suffering of the Ukrainian people and the potential restructuring of the global order—is far more important.”
Significant Geopolitical and Economic Challenges
“America and the rest of the world are facing the confluence of three important and conflicting forces: 1) a strong U.S. economy, which, we hope, has COVID-19 in its rearview mirror; 2) high inflation, which means rising interest rates and, importantly, the reversal of quantitative easing (QE); and 3) the war in Ukraine and the accompanying humanitarian crisis, with its impact on the global economy in the short term, as well as its significant impact on the geopolitics of the future. These factors will likely have a meaningful effect on the economy over the next few years and on geopolitics for the next several decades.”
The U.S. Economy Is Strong
“Today’s economic landscape is completely different from the 2008 financial crisis when the consumer was extraordinarily overleveraged, as was the financial system as a whole.”
“During 2020 and 2021, many aberrant things also happened: 2 million people retired early; the supply of immigrant workers dropped by 1 million due to immigration policies; available jobs skyrocketed to 11 million (again unprecedented); and job seekers dropped to 5 million. Wage growth accelerated dramatically, particularly in low-income jobs. We should not be unhappy that wages are going up—and that workers have more choices and are making different decisions—in spite of the fact that this causes some difficulties for business.”
“Consumer confidence and consumer spending have diverged dramatically, with consumer confidence dropping. Spending, however, is more important, and the drop in consumer confidence may be in reaction to ongoing fatigue from the pandemic shutdown and concerns over high inflation.”
Monetary Policy and Inflation
“Persistent inflation will require rising interest rates and a massive but necessary shift from quantitative easing to quantitative tightening.”
“It is easy to second-guess complex decisions after the fact. The Federal Reserve (the Fed) and the government did the right thing by taking bold dramatic actions following the misfortune unleashed by the pandemic. In hindsight, it worked. But also in hindsight, the medicine (fiscal spending and QE) was probably too much and lasted too long.”
“In today’s economic environment, countries’ central banks do not need to increase their foreign exchange reserves as they did after the great financial crisis, and banks don’t need to buy Treasuries to improve their liquidity ratios. This time around, business investment will likely be higher, both because of higher growth and because the capital required to combat climate change is estimated to be more than $4 trillion annually. Finally, governments will also need to borrow more money—not less.”
“This massive change in the flow of funds triggered by Fed tightening is certain to have market and economic effects that will be studied for decades to come. Our bank is prepared for drastically higher rates and more volatile markets.”
War In Ukraine and Sanctions on Russia
“The war in Ukraine and the sanctions on Russia, at a minimum, will slow the global economy—and it could easily get worse.”
“Many more sanctions could be added—which could dramatically, and unpredictably, increase their effect. Along with the unpredictability of war itself and the uncertainty surrounding global commodity supply chains, this makes for a potentially explosive situation.”
“The war could affect geopolitics for decades. Russian aggression is having another dramatic and important result: It is coalescing the democratic, Western world—across Europe and the North Atlantic Treaty Organization (NATO) countries to Australia, Japan and Korea. The United States and the West realize there is no replacement for strong allies and strong militaries.”
‘The Extraordinary Need for Strong American Leadership
“Even before the war in Ukraine jeopardized the world order, we were facing exceptional and enormous global challenges—nuclear proliferation (this is still the biggest risk to mankind, bar none, and made all the more stark by the war in Ukraine), threats to cybersecurity, terrorism, climate change, pressures on free and fair trade, and vast inequities in society. Critical to solving these problems is strong American leadership.”
America Has Flaws but Also ‘Enduring Strengths’
“Our country is not perfect, but our basic principles—i.e., the rule of law, individual liberties, freedom of speech and religion, and the concept of equal opportunity—are still exceptional ideals that most of the world wants yet often is not able to achieve. These principles still make America the partner of choice for many countries and the destination of choice for many individuals. Our American system gave us one of the world’s most prosperous and innovative economies.
‘Our Principles, Including Free Enterprise, Need to Be Nurtured’
“Free enterprise celebrates, and is inseparable from, human freedom and creativity, which ultimately are the sources of all human progress. The secret sauce of free enterprise is not only the free movement of capital but also, more importantly, the value of knowledge and free people exercising their rights.”
“Nonetheless, many countries—inadvertently through decades of following bad policy or deliberately by restricting freedoms—damage the full benefit of free enterprise and often discourage savings, innovation, and the free movement of people and labor. We all believe in great social safety nets that reduce poverty, provide opportunity for good jobs and serve as an engine for economic growth. But freedom slowly disappears when a country’s government controls too much of its economy, and people in nearly every country, free or not, do not like constantly being told what to do. It is disingenuous when political leaders say that government ‘built the roads’ and then use that statement as an argument to suppress free enterprise. The roads were built by the people and for the people so that all could travel and prosper.”
“What we really need are free enterprise, more civic-minded companies and citizens, and extraordinarily competent government and policies.”
‘Government … Has an Essential Role … but It Needs to Be Realistic’
“We have fallen into the rut of false narratives, which distracts us from facing reality. We don’t define our problems properly. If you have the wrong diagnosis of a problem, you will certainly have the wrong solution. Even if you have the right diagnosis, you still may arrive at the wrong solution—but your odds are certainly much better. Our policies are often incomprehensible and uncoordinated, and our policy decisions frequently have no forethought and no identification of desired outcomes.”
“We sometimes blame inflation on corporate profits—for example, the cost of meat in the United States is high not because of the profits earned by the meat packing industry but because of high cattle and feed costs and disruptions in logistics. Similarly, energy costs are high not because of price gouging but because of the dramatic decline in investments in energy, which results in reduced supply when demand goes up. Regulation has dramatically impeded our ability to build good infrastructure in a timely manner—the cost of building a highway has more than tripled in 20 years purely because of expenses due to regulations.”
“Our politics are dysfunctional, which has prevented some of our best, brightest and most competent to want to work in government. While we have plenty of economists, academics and lifetime politicians in government, who I know are committed to doing their best, we need additional brainpower, capabilities and experience from leaders across all sectors of our society, including business. It is going to take extraordinary, broad-based leadership to solve our problems.”
‘We Must Confront the Russia Challenge with Bold Solutions’
“America must be ready for the possibility of an extended war in Ukraine with unpredictable outcomes. We should prepare for the worst and hope for the best. We must look at this as a wake-up call. We need to pursue short-term and long-term strategies with the goal of not only solving the current crisis but also maintaining the long-term unity of the newly strengthened democratic alliances. We need to make this a permanent, long-lasting stand for democratic ideals and against all forms of evil.”
‘A Strong America Need Not Fear a Rising China’
“The most important relationship over the next 100 years will be the one between America (and its allies) and China. The stronger the allied nations, the better it is for America. But for America to get this essential relationship right, we need to have a clear-eyed view of our strategic economic and national security interests.”
“America is not operating from a position of weakness; indeed, our strengths are extraordinary. Conversely, over the next 40 years, China will have to grapple with some serious issues: For all of its strengths, China still needs more food, water and energy to support its population; pollution is rampant; corruption continues to be a problem; state-owned enterprises are often inefficient; corporate and government debt levels are growing rapidly; financial markets lack depth, transparency and adequate rule of law; income inequality remains highly prevalent; and its working age population has been declining since 2015. China will continue to face pressure from the United States and other Western governments over human rights, democracy and freedom in Hong Kong, and activity in the South China Sea and Taiwan.”
https://www.investopedia.com/highlights-of-jamie-dimon-letter-to-shareholders-5224699
JAMIE DIMON LETTER AND YOU TUBE
TO READ THE ENTIRE LETTER, CLICK BELOW:
https://reports.jpmorganchase.com/investor-relations/2021/ar-ceo-letters.htm
CONCLUSION READING NON-FICTION IS BENEFICIAL
- Provides information and knowledge on various subjects, such as history, science, business, and self-development.
- It helps improve critical thinking and analytical skills, requiring you to evaluate and form your opinions.
- Practical advice and solutions to real-world problems benefit personal and professional development.
- It creates an open mind, cultivates curiosity, and enables lifelong learning.
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
LET’S MAKE SOME MONEY!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! CHARITIES I SUPPORT
St Jude Hospital: https://www.stjude.org/
Wounded Warrior Project: https://www.woundedwarriorproject.org
Folds of Honor: https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: https://wcnkas.org
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
