U.S. will eventually experience ‘the normal effects of recession,’ says J.P. Morgan’s Jamie Dimon

[libertybele]

U.S. will eventually experience ‘the normal effects of recession,’ says J.P. Morgan’s Jamie Dimon

.....The bank boss noted that that the pandemic and the government and central-bank response to it have created a disconnect between the real economy and the stock market, with the Dow Jones Industrial Average DJIA, -0.10% rising on Tuesday and the S&P 500 index SPX, -0.52% within a stone’s throw of its record high and the Nasdaq Composite Index COMP, -1.36% having produced 32 record highs already in 2020.

Meanwhile, millions of people are out of work as the spread of the disease has forced an extension, and sometimes a reimposition, of business closures intended to limit the contagion, while lawmakers have failed to agree upon additional stimulus for those out-of-work Americans after relief measures expired at the end of last month.

Dimon said that the public health crisis would eventually impact incomes.

“We can’t be doing this a year from now and think that it won’t cause devastation in the economy,” he said of talks from lawmakers about providing a fresh round of assistance to individuals.

Dimon said that the pandemic created by the spread of the novel coronavirus is likely to have lasting effects well into the future, as consumers remain skittish about returning to and achieving some semblance of normalcy in the near term.

“There’s going to be some scar tissue from this one, but we have a chance to recover,” the CEO said.

In a separate interview with CNN, Dimon said that he was encouraged by some signs that the viral spread was slowing in some states and hopeful that the U.S. would eventually get the disease under control.

“We will win that war,” the J.P. Morgan Chase JPM, 3.27% head told CNN’s chief business correspondent, Christine Romans, recently, predicting that the U.S. unemployment rate would fall to around or below 7% by next year.....

https://www.marketwatch.com/story/u-s-will-have-a-delayed-effect-of-seeing-the-normal-effects-of-recession-says-jpmorgans-dimon-11597160306?mod=home-page

[LegalAmerican]

You always post, doom and gloom for America.  Why is that?  Everything negative. 

[jmyrlefuller]

We can't be doing this a year from now, period. This has to end, and soon.

[Smokin Joe]

We can't be doing this a year from now, period. This has to end, and soon.

I fully agree.

Dimon said that the public health crisis would eventually impact incomes.

Dimon had a real Sherlock Moment. I'm getting by on less than 40% of what I was making at the beginning of the year, and I'm still scraping by, but there are plenty of people in worse shape. (I didn't file for unemployment when I got laid off, I got another job, but it just doesn't pay as much--actually, I'm working a new one after quitting the first over just not enough hours to pay the bills).
Deferring tax payments is just guaranteed debt for individuals down the road, but there has to be a light at the end of that tunnel, too. Owing the IRS is right under not being able to pay my property taxes on my list of undesirable situations. Those are the two most brutal creditors out there, either one will take your house for non payment.

For those who kicked back and collected the maximum of nearly 5K a month with the COVID bonus, life was good, but with that evaporating this check, what was livable money for the people who were getting less than the maximum benefit is now grossly insufficient, and the low-end jobs have dried up, even here.

Those start-ups, small businesses, restaurants operating on a skeleton crew trying to keep it going, are foundering with their decks awash in debt, and a lot of the day to day things that make the economy go round are slowly spinning to a halt. Something has to break or the economy as we knew it will be gone.