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Congratulations again. JP Morgan reports earnings today, but all attention is focused on CEO Jamie Dimon's words about the state of the economy. Dimon says consumer spending and business investment are keeping the economy moving, but he also warns that deficits, persistent inflation and rising interest rates could quickly turn the tide.
This somewhat complements the conversation we just had. Judging by the way he's presenting it, Charlie, it sounds like we're in for a perfect storm. In fact, in his statement he goes on to say that interest rates and geopolitical conditions continue to change beneath the surface. These forces can be managed, but we remain prepared for a wide range of outcomes.
You know, Jamie Dimon reminds me of a former journalist who wrote for the New York Times, a very popular journalist named Floyd Norris. Floyd Norris predicted for years before the dot-com crash in 2000 that they would collapse, and eventually it did. So at some point you will be right. to be right. Okay, this is Jamie, you know, he's hedging in a lot of ways , pointing out all the possible downsides.
If you look at JP Morgan as an institution, it is hardly a risk-averse organization. Their trading department makes a lot of money on risks, their bankers take a lot of risk. They work with risks every day through their commercial bank, these guys literally feed off of it. But what has made Jamie Dimon successful over the years is that he takes calculated risks.
And I think, you know, listen, you can have your cake and eat it too . You can enjoy, you know, listen, if you have some money, you can invest. If not, well, we just had this conversation. There is a whole economy you can tap into, and a whole market. But you have to know about the cons, and those cons are all what he said.
And I'm sure every one of his traders has these risks he talks about taped to the wall right next to the Bloomberg terminal or something like that. assuming his words don't match his actions, which Well, no, I think his... Yeah, well, that's only half the story. Yes, it's half, but... But my opinion is that, of course, there is a positive signal here.
During the pandemic, he also talked about an economic hurricane that ultimately didn't happen, Charles. I just want to emphasize that I think he's a smart man, he runs a big bank in this country, but his predictions don't always come true. A broken clock shows the correct time twice a day. so that these predictions, so that these disclosures are correct.
alarmists, and that's what he has to do. He has to make sure he protects the shareholders, protects the company. And regarding your comment about trading revenue: there was some decline in the third quarter, which is what he was talking about. But you know, the other interesting thing he mentioned is the lower appetite for risky loans at several banks that we've heard about, not just JP Morgan.
I mentioned this at the beginning of the program. Another thing was about consumers. This guy has all the credit cards. That's why I listen to Jamie Dimon. He's the one , I mean, they—they're the biggest part. When he talks about the consumer, I listen carefully to him, and the consumer still spends money.
Of course. And businesses are still spending money. Banks generally do not spread pessimism. In general, no. Okay, I mean, if you look at the CEO of Citi who made his statement. Usually these people are selling something. And that's why I appreciate Damon. But that doesn't mean he's always right, because obviously he's been saying the end is near for how long?
It's been a long time. I have a transcript here that says that the probability of bad outcomes in 2024 is higher than people think. In 2026, things will be worse than people expect. That is, he is specific enough and at the same time not specific enough in his predictions to never be right or wrong.
billion dollars in revenue per quarter, interest expense—interest income growth over the next few quarters. And I think he's just doing what we all need to do, which is recognize that the environment is not great, that we have a government deficit that is huge, that neither Republicans nor Democrats know how to contain spending, and that the cost of borrowing is higher because of hyperstimulation.
These are facts. Yes, I agree. You know, the stock market keeps growing and growing. Cyclically speaking, he can't do this forever. I expected it to go down sooner, but it's holding up. At some point we will see something happen. Although J. Powell makes money under any circumstances. We want to change the subject for a minute and delve into the details.
Lou, you're looking at Bumble. Don't forget to like and subscribe to Fox Business on YouTube for the latest news, and you can watch full episodes of the show now on Fox 1.
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