https://youtu.be/h-Nc2KGjIUw?si=94hRXqwYctjKkVx_
Jeff Snyder believes that Jamie Dimon is lying (What? No way!)
He claims that Trump tariffs will bring inflation, while his bank is loading up on bonds.
What do the econ gurus think?
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🤠https://youtu.be/h-Nc2KGjIUwview on youtu.beIt seems very possible. This is part of finance at that level right? Use cheap talk to move prices in the direction you want so you get a better buying opportunity.
I'm not a guru, but I don't think he's "lying" more than the usual on this.
Does JPM pay interest on liquid dollars nowadays? Because if that's still not the case, then for them to buy bonds makes sense, no matter what the rates are, as long as they don't have to sell them prematurely.
Every % is great if you don't have to compete with the other banks on rates. Ask Tether.
The "peasant" is going well...
What they say, and in general what is already public information for everyone, is not true / incomplete / irrelevant, or simply outdated...
The way to test if Jeff was right is to see if Jamie's mouth was moving.
If the borrowing rate goes down, as he’s expecting, existing bonds at the higher rates become more valuable. Isn’t this pretty standard?
I'm misunderstanding. Dimon is saying inflation is coming. If that's what he thinks, rates won't go down. They will go up, and the existing bond's value will drop.
I took it to mean monetary inflation, the supply of dollars will go up as rates come down, and the price of existing bonds at higher rates will go up
There really seems to be some inconsistency here.
If what Jeff Snyder is saying is true, there’s a clear disconnect between what Jamie Dimon is saying and what his bank is actually doing. In economics, actions often speak louder than words.
If you're warning about high inflation but your bank is buying bonds .. which usually lose value during inflation .. then it seems like you don’t truly expect inflation to rise.
It might be political messaging, or perhaps an attempt to influence public perception to gain a market advantage.
To me, it feels like they're trying to control the narrative.
This is why independent voices like Jeff Snyder are important .. to challenge whatever message the big institutions are trying to push.