40.2 JPMorgan CEO warns US Treasuries have Cooties

Jamie Dimon, CEO of JP Morgan -- America's most important bank, "wouldn’t touch" America's Treasury securities with a "10-foot pole". But JP Morgan itself is likely buying the same Treasuries hand over fist! Why the disconnect? Politics? Malice? Or just bad economics?

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----------WHERE----------

----------WHEN----------
00:00 Never attribute to malice that which is adequately explained by stupidity
03:37 In 2018, why did Jamie Dimon say Treasuries would fall? Was it monetary? Political?
05:18 Dimon is America's best bank executive. Does that mean he knows shadow banking?
07:23 What is the Z1 Report / Flow of Funds / Financial Accounts say about American banking?
09:19 Might this be the most important chart shown by Making Sense in 2020?
14:50 M1, M2 and M3 measures of money surged in 2020, the Z1 Report helps explain why that is
17:15 Bank assets increased between 2019 and Q3 2020, but how and where was this increase?
19:43 Consumer loans did not increase. So, then was it government credit? US Treasuries?

----------WHAT----------

----------WHO----------
Jeff Snider, Head of Global Investment Research for Alhambra Investments with Emil Kalinowski, cootie-free. Artwork by David Parkins. Podcast intro/outro is "Chasing Visions" by Vvano at Epidemic Sound.

#JeffSnider #Z1Report, #JPMorgan #BankLoans #FlowOfFunds

[bestfriendhank]

Emil, you can’t be saying “ladies and gentlemen”. I personally identify as a ledger entry under the liability column on Uncle Sam’s balance sheet.

[davg]

Hi guys, I used to work at said bank. Jamie Dimon is one switched on dude. He has the knack of wrapping his mind around some very complex problems or business areas very quickly. He asks the right questions, delves into the weeds and is very decisive. He was very well respected by all. I doubt he is doing or saying anything by accident.

[Clubrat]

Get a discussion with Steven Van Metre about treasuries and the bond market! I bet Jeff + Van Metre = subscriber bonanza!

[erikforshult]

Happy holidays my two favourite YouTubers .
Look forward to another year anxiously waiting for your podcasts .
Best regards Erik

[gregorybainathsah]

The beard is so good that I'd be mad if Jeff shaves it off

[dschoonover]

Thank you for all that you do. Your show is my top favorite. Have a wonderful holiday and I look forward to listening in 2021.

[jpbrindamour]

Can you cover the return of the stock buybacks and the impact for asset prices?

[catcar]

Give me your arm. Circle, circle, dot, dot, now you got the cootie shot!

[geertvanreeken]

Hi Emil & Jeff, Awesome episode and amazing show. The only show on youtube of which I watched every single episode! I have a few questions though about the repo market. So the repo market, in short, can be described as a secured lending market.

Q1: Is it bank reserves that are being lent out in the repo market?

Q2: if a bank lends out money in the repo market. Are these existing bank reserves that are being lend out, or can the bank on the other side of the deal, create the ‘money’ out of nothing by expanding its balance sheet?

Q3: if it are existing bank reserves that are lend out, how does re-hypothecation lead to extra credit expansion for the system as a whole?

[jorgeponce]

13:09 "It shows a tremendous gap in money creation".
QUESTION: Is a parabolic increase in money creation desirable?
Is it the definition of a bubble ("it went parabolic" we hear saying when an exponential growth of something is unsustainable). Does the real economy, as measured by GDP, ever grows exponentially?

[darmann]

It would be very interesting if you could talk with Jeff and explain some more about thesis from Russell Napier, who was long time on side of deflation but turned on inflation now: “Governments tell commercial banks to grant loans to companies, and they guarantee these loans to the banks. This is money creation in a way that is completely circumventing central banks. So I make two key calls: One, with broad money growth that high, we will get inflation. And more importantly, the control of money supply has moved from central bankers to politicians. Politicians have different goals and incentives than central bankers. They need inflation to get rid of high debt levels. They now have the mechanism to create it, so they will create it.”

[dingowhittingham]

Emil & Jeff, interesting that you are looking at data which only goes to October when more recent data exists at the FRED under H.8

[furd]

Subscribed just cause you put the word cooties in the title of this video.

[toddgeiger]

Dimon wouldn't touch USTs with a "10-foot pole, " he's got traders for that sort of thing...

[TheEverts]

Interesting question would be how much of the reduction of the EuroDollar-Lending capability has been created by the increasing bank regulation?

[hughincalifornia]

1 down vote? "Dimon's Diamonds" Fan Club out in force!

[stridedeck]

Looking at the chart of US Depository Institutions (assets), the increase steepen significantly right after the S & L crisis in 1990s which corresponds to the retraction of the Glass-Steagall Act which separated banks from the investment sectors. Banks' assets are loans! If one would take the line (averaged) from 1953 to S & L and the retraction of the Act, and extend it to 2020, you will see that it is significantly below and this line represents where stability lies!

[bruhhhhh]

this is awesome...any chance we can see you moderate a jeff talk with Schiff

[joshuapernell]

If the countries students got into non deferrable debt getting lectured by you guys, the world would be in a better place!

[uberimmer]

I assumed Jamie Dimon meant don't buy UST for the yield which he expects to go down, while prices go up which is why he's buying! He might not be stupid but many financial gurus seem to think the public is stupid, that's for sure. We are the dumb money after all.