The CEO of JPMorgan Chase Jamie Dimon by virtue of being the head of the largest bank in the US and Chair of the Business Roundtable is often seen as the face of the US banking sector or his views count for something.
In an article by Elizabeth Dilts Marshall of Reuters, on the JPMorgan Chase website, Mr. Dimon published his views of the economy in general. He said because of savings (people have not been able to spend on entertainment and hospitality) quantitative easing, a new infrastructure bill, a successful vaccine rollout, and a general feeling of getting out of the pandemic, the economy could boom until 2023.
Mr. Dimon said corporations would be willing to pay more in taxes, if the government adopted a rigorous budgeting, transparency and discipline when it comes to spending. Ideally they follow the corporate example of how to spend.
As a banker, the danger to a banker is writing off loans as uncollectable. Mr. Dimon is focusing a growing economy which should mean access to credit for both individuals and businesses.
Linking to dividend paying companies, in a growing economy, treasurers or CFOs should have a friend at the bank and be able to discuss a variety of financial options which is good for the company. The Treasurers should be using the banks access to credit with little problems, are they?
There are more questions than answers, till the next time – to raising questions.