JPMorgan CEO: Major Recession Will Be Similar to 2008
by Marvin Dumont
JPMorgan CEO Jamie Dimon is warning shareholders of the nation’s biggest bank that an upcoming “major recession” will be similar in severity to the 2008 Great Recession. In the recent letter found here, Dimon says:
… knowing there will be a major recession mean that we are exposing ourselves to billions of dollars of additional credit losses as we help both consumer and business customers through these difficult times.
… at a minimum, we assume that it (the future) will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008. Our bank cannot be immune to the effects of this kind of stress.
It will be interesting to see how the cryptocurrency and blockchain industries behave this time under such extreme conditions. Bitcoin (BTC) was birthed after the 2008 financial crisis and spawned a $200 billion industry that captured people’s imagination in 2017–2018.
Will mainstream investors view cryptos as store of value in the midst of a global recession? And which coins and tokens will emerge stronger from this new crisis?
Bitcoin and other limited-supply coins are viewed as anti-thesis to central banks’ massive expansion of monetary supply through quantitative easing (QE). The Federal Reserve and other central banks around the world are expected to again print trillions in new fiat cash but may also usher a high-inflation environment globally.
What would this practice mean for crypto valuations?
The economic crisis could push half a billion more people into poverty worldwide, according to charity Oxfam.
Here’s another trend: 31% of U.S. tenants did not pay rent between April 1 and 5, according to data released on Wednesday by National Multifamily Housing Council. During the same time in 2019, only 18% of renters did not pay rent.
According to World Trade Organization (WTO), global trade is expected to drop between 13% and 32% this year due to the coronavirus pandemic. The crisis has also reduced working hours globally by 6.7%, according to International Labor Organization, an amount equivalent to 195 million full-time jobs.
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