Tag Archives: jp morgan chase

Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece’s current debt woes.

Everyone knows that California is a greater risk financially than Greece. The socialist machine in Sacramento will simply take any monies from any source and spend it on welfare and illegal immigrants. J.P. Morgan Chase understands this.

California is broken. Its one of the reasons I named this site BrokenCountry.Com. Its been broken for more than 25 years, since the hippies from the Haight Ashbury area of San Francisco decided to run for office.

These socialist assholes have ruined California and turned the state into a mecca for degenerates and low lives from every corner of the planet. Now the state is bankrupt because these same socialist spend every penny sent to Sacramento on their unions, which run the state, and their social programs that they create to ensure that they are re-elected. JD

Mr Dimon told investors at the Wall Street bank’s annual meeting that “there could be contagion” if a state the size of California, the biggest of the United States, had problems making debt repayments. “Greece itself would not be an issue for this company, nor would any other country,” said Mr Dimon. “We don’t really foresee the European Union coming apart.” The senior banker said that JP Morgan Chase and other US rivals are largely immune from the European debt crisis, as the risks have largely been hedged.

California however poses more of a risk, given the state’s $20bn (£13.1bn) budget deficit, which Governor Arnold Schwarzenegger is desperately trying to reduce.

Earlier this week, the state’s legislature passed bills that will cut the deficit by $2.8bn through budget cuts and other measures. However the former Hollywood film star turned politician is looking for $8.9bn of cuts over the next 16 months, and is also hoping for as much as $7bn of handouts from the federal government.

Earlier this week, John Chiang, the state’s controller, said that if a workable plan to reduce the deficit and increase cash levels is not reached soon, he will have to return to issuing IOU’s, forcing state workers to take additional unpaid leave and potentially freezing spending.

Last summer, California issued $3bn of IOU’s to creditors including residents owed tax refunds as a way of staving off a cash crisis.

“I can’t write checks without money; that’s against the law. My main goal is to keep the state afloat, but I won’t be able to do it without the help of new legislation,” said Mr Chiang.