JP Morgan reported earnings early Thursday, and beat estimates handily. They guided somewhat higher, but who really knows what they could earn in a sluggish economy. But what caught me was something in the conference call.
CEO Jaime Dimon made some interesting comments, but one struck me as a big 'tell' in the market. A 'tell' is something that give you an idea of what someone feels or thinks. In this case, Mr Dimon stated that 'We are not sitting here terrified of deflation'. Now, JPM has a well-known relationship with the Fed and Treasury. We know what Bernanke fears: deflation which can merge into a depression...and he'll do anything to avoid it...even dropping bags of money from helicopters.
So, I'm sure Mr Dimon and JPM are comforted to know that the Fed and Bernanke have plenty of ink in their machines to get the flow of money rolling again.
CEO Jaime Dimon made some interesting comments, but one struck me as a big 'tell' in the market. A 'tell' is something that give you an idea of what someone feels or thinks. In this case, Mr Dimon stated that 'We are not sitting here terrified of deflation'. Now, JPM has a well-known relationship with the Fed and Treasury. We know what Bernanke fears: deflation which can merge into a depression...and he'll do anything to avoid it...even dropping bags of money from helicopters.
So, I'm sure Mr Dimon and JPM are comforted to know that the Fed and Bernanke have plenty of ink in their machines to get the flow of money rolling again.