An Extraordinary Letter (posted 4/2/09)

Jamie Dimon, the CEO of J.P. Morgan has written an extraordinary letter to his shareholders.

For anyone who wants a clearer understanding of the financial crisis we’re in, and what is needed to prevent another one, this is MUST reading.

Warning: it is long; but it covers the waterfront………..  what went wrong with the financial system, JPM’s part in taking on and controlling risk in the cases of Bear Stearns, and WAMU, why they took TARP money, the inadequacies of regulation, thinking about future regulation and structure, and much more.  It is the clearest piece I have read.  You’ll understand after reading it, why JPM is standing above its competitors.

Click HERE to go to the JPM site, then click on Letter to Shareholders

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2 Responses to An Extraordinary Letter (posted 4/2/09)

  1. Dean Taylor says:

    Something that disturbs me is the enormous cost of our
    military and defense spending. With over 1,000 military bases overseas and trillion dollar wars in Iraq and Afganistan and the purchase of new weapons systems we don’t need, how will this country ever recover? Can you please comment on this? I’d be much obliged.

  2. Paul F. Miller, Jr. says:

    Actually, despite the Iraq War and Afghanistan our spending on defense is considerably lower as a percent of GDP than in earlier years. In the peak cold war years of the 1960’s it was 9-10% of GDP, and in the Reagan years it was about 7%. Currently it is 5.3%, p from 3.7% in 2000. I am much more concerned about meeting our promises on Social Security and health care as the really big wedge.

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