This time, it isn’t just Peter Schiff, Marc Faber, David Stockman or Jim Rogers ringing the alarm bells warning about another looming financial crisis. One of the most prolific Wall Street CEOs is actually informing everyone that “there will be another crisis.”
JPMorgan CEO Jamie Dimon wrote in an annual letter to shareholders that another economic collapse is possible. In such an event, markets will become more volatile, while a recession would bring more chaos to the United States economy.
Here is what he wrote in his letter:
“The trigger to the next crisis will not be the same as the trigger to the last one, but there will be another crisis. Triggering events could be geopolitical, a recession where the Fed rapidly increases interest rates, a commodities price collapse, a commercial real estate crisis, bubbles, etc.”
Dimon cited a lack of credit extension, enhanced federal regulation and a paucity of securities as just some of the reasons for another financial crisis. “[These] make it more likely that a crisis will cause more volatile market movements with a rapid decline in valuations even in what are very liquid markets.”
What’s behind these comments exactly? It’s hard to say, but perhaps he suffered from a near-death experience so he thinks he can save himself by warning the public at large. Who knows? Despite who says it, another collapse is nigh and you should prepare yourself.
Photo by: Steve Jurvetson
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