2019-04-26 09:33:00 Fri ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
JPMorgan Chase CEO Jamie Dimon defends capitalism in his recent annual letter to shareholders. As Dimon explains here, socialism inevitably produces stagnation, corruption, and often worse. If the government controls companies, people direct economic assets to further political interests as enormous favoritism, corruption, and other preferential treatment lead to inefficient market outcomes. Dimon admits that capitalist countries need stronger social safety nets because there are some fundamental flaws with capitalism. A good example is universal healthcare, and thus Dimon now collaborates with Jeff Bezos and Warren Buffett to pioneer a cost-effective employee healthcare program for Amazon, Berkshire, and JPMorgan.
Dimon further defends capitalism because private enterprise is the true engine of economic growth in any country. Although economic growth may widen the income gap between the rich and the poor, most high-income countries emerge with tech titans, big businesses, and successful innovators.
Dimon observes that U.S. bank regulators now have fewer policy instruments to avert the next financial crisis. Banks can maintain sufficient liquidity, credit supply, and procyclical capital in rare times of extreme financial stress. Dimon emphasizes the importance of long-run business profitability in contrast to short-run gains such as one-year stock price performance and share buyback.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2020-02-12 09:31:00 Wednesday ET

Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends. David Kirkpatrick (2011) T
2018-03-17 09:35:00 Saturday ET

Facebook faces a major data breach by Cambridge Analytica that has harvested private information from more than 50 million Facebook users. In a Facebook pos
2018-08-13 12:39:00 Monday ET

White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Gree
2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases
2020-03-05 08:28:00 Thursday ET

The Stanford computer science overlords Larry Page and Sergey Brin design and develop Google as an Internet search company. Janet Lowe (2009) Google s
2018-09-17 12:40:00 Monday ET

Nobel Laureate Robert Shiller's long-term stock market indicator points to a recent peak. His cyclically-adjusted P/E ratio (or CAPE) accounts for long-