Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
Gold is a coiled spring… the breakout is here, fundamentals are in place, technicals are compelling - 20th Aug 17
A Midsummer Night's Dream: Buy Gold and Silver - 20th Aug 17
Gold Mining Stocks 2017 Fundamentals - 20th Aug 17
EIA Weekly Report and Crude Oil - 19th Aug 17
4 Insights for Adjusting Your Portfolio in a Rate-hike Environment - 19th Aug 17
Gold Direction Indicator - 19th Aug 17
Historical Inevitability and Gold and Silver Ownership - 19th Aug 17
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Jamie Dimon, Mr. JP Morgan as Treasury Secretary?

Politics / US Politics Jul 06, 2011 - 04:40 PM GMT

By: Dr_Jeff_Lewis

Politics

While news of Timothy Geithner’s exit from the Administration as Treasury Secretary reverberates throughout the political spectrum, Jamie Dimon, CEO of investment bank JP Morgan, is quickly becoming the new leader in the race for this unelected position.


There is very serious concern surrounding Jamie Dimon’s appointment as Treasury Secretary.  Should he be the next in line for the very powerful position, it would confirm once more that it is Goldman Sachs and JP Morgan that call the shots in the White House.  Hank Paulson was a Sachs alumni, and Geithner worked with both Rubin and Paulson, both Goldman alumnus.  Geithner’s toughest decision might have been allowing the failure of Bear, AIG, and Lehman Brothers—all of which could be described as investment banking operations—while allowing JP Morgan and Goldman Sachs to avoid failure on the public’s dime.

Tangling Business and Government

Jamie Dimon is an interesting example of a future Treasury Secretary.  He served as CEO at Bank One—a subprime lender all its own—before going to JP Morgan and buying out his previous employer.  During this time, he also spent time at the Federal Reserve, which would surely enable him to see how the US Treasury, already working in tandem with the private bank, could better funnel cash from Main Street to Wall Street.

Dimon is well adjusted to a position in government.  A Democrat and well-known in Chicago’s political circles, he’s also very close to Geithner.  Dimon was among three banking CEOs who have been given near absolute access to Geithner during the events of the financial crisis.

Not Much a Stickler

Politically, Dimon has nothing going for him that Main Street might find alluring, which does help him in his possible role as US Treasury Secretary.  He recently gained fame in standing up to Bernanke, charging the Fed and government both with creating too much regulation that, in his view, would restrict the banks from financing a future American recovery.

Interestingly, that view disagrees with his position just weeks after receiving a Federal bailout.  After receiving $25 billion, JP Morgan Chase announced its interest in a new policy of acquisitions, hoping to suck up smaller, less politically connected banks, just as the firm had done a century earlier.  Lest we forget that it was the original JP Morgan, the man and banker himself, who received millions from the US government to “solve” the panic of 1907.  The banker’s solution, of course, was to buy up every bank that he would let fail.

It’s hard to see why Jamie Dimon won’t become the next Treasury Secretary.  Few people know who he is, only the bank that he runs.  No one will get to vote on the matter, as it is a position for nomination, not election.  And if Timothy Geithner can earn a position in government—in the Treasury, no less—after failing to pay his taxes in full, Dimon’s entrance into the position should be nothing more than a cakewalk.

Whether Dimon will create any lasting change, or have any real influence, remains to be seen.  However, any way you slice the next nomination, you can be sure that the old policies of the Secretaries past will not be going anywhere any time soon.

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2011 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Paul
07 Jul 11, 16:54
one thing

Dimon has one thing going for him that trumps any consideration of competence or even honesty. Its that thing that ensures one particular loyalty keeps control of the planetary purse strings whether it be private banks, the US Treasury or the IMF and World Bank. Everyone knows it, even if they won't say it.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife