JP Morgan CEO Says Banking Crisis Not Over; Economist Breaks Down Reasons Why

The CEO of JP Morgan, Jamie Dimon, said the U.S. banking crisis is not over, that it will linger for years, and that America is moving into a “vicious cycle.” NTD speaks to Vance Ginn, the president of Ginn Economic Consulting, for analysis.

Ginn points to several factors that contributed to this. Those are years of low-interest rates, liquidity injected by the Federal Reserve, and excess spending by Congress which adds a lot of treasury securities debt into the marketplace.

This is passed on to the banks, he says, and to get a higher rate of return, the banks were taking riskier investments. This creates a boom period but it also leads to a bust, according to Ginn. He warns of more bank failures as a result, in addition to a prolonged period of economic slow growth and a recessionary period, which could hit Americans hard given inflation and fewer jobs in the marketplace.

ntd newsletter icon
Sign up for NTD Daily
What you need to know, summarized in one email.
Stay informed with accurate news you can trust.
By registering for the newsletter, you agree to the Privacy Policy.