Friday, May 20, 2011

More Idiocy From Jamie Dimon

I heard Bloomberg report this morning that Chase's CEO, Jamie Dimon, was excoriating Congress for taking the national debt limit seriously.

In a commencement speech in Colorado, Dimon castigated Congress for risking default and all that he believes will follow.

But, as I noted in this recent post discussing Stanley Druckenmiller's interview in the Wall Street Journal last weekend, real bond traders have a different view.

Last I looked, Dimon's formative years were spent carrying Sandy Weill's bags for a living. I don't believe Dimon was ever celebrated for running a successful government bond trading operation.

Druckenmiller, on the other hand, is known for successfully trading government debt. And he disagrees completely with Dimon's opinions, dispensed, such as they are, from 20,000 feet.

Ever since I worked closely with the CEO and Chairman at Chase Manhattan Bank, thanks to my mentor, Gerry Weiss, and with his helpful explanations, I learned how often such executives become pompous and self-important, pronouncing on topics about which they actually know little, or nothing, simply because of the title behind their names.

So, who would you believe? Druckenmiller, who's made a career in investing in governments, or Dimon, who's made a career as a financial services apparatchik and bureaucrat?

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