Monday, October 15, 2012

Jamie Dimon: Housing Has Turned the Corner

Jamie Dimon is usually only one step behind EPJ. On Friday he said during a conference call with the media:
Importantly, we believe the housing market has turned the corner.
That's been the EPJ view for the last few weeks---and we don't get to see all the internal JPMorgan data that Jamie gets to see. It should be noted that Dimon also said:
Despite this improvement, the absolute level of charge-offs remains elevated. We also expect to see high default related expense for a while longer.
In other words, don't equate default rates with the condition of the overall housing market. Housing is on an uptick and major Wall Street hedge funds will be in the market buying up huge chunks of default housing that comes on the market.


  1. Color me skeptical, but I'm going to wait for confirmation of the trend.

    Also with regards to HFT providing "liquidity". Haaaa!

  2. "I used to think information was destroyed in a black hole. This was my biggest blunder, or at least my biggest blunder in science." Stephen Hawking

    Oh ye of little faith!

    Jamie, you see, has learned the ultimate secret of the universe. He now has his head so far up his ass, he has moved beyond the point where his head used to be and is now in residing in an infinite black hole. Here he has scientifically proven that Mr. Hawking did initially blunder. Information is in fact, not destroyed, but new and heretofore unknown levels of understanding into our current predicament manifest to him in brilliant flashes of insight. Earth shattering truths - to wit:

    "You cannot prove this in real time, but when economists 20 years from now write a book on the recovery, it may well be entitled, 'It could have been much better."
    "If the economy grows, housing gets better, quicker."
    "No one can forecast the economy with certainty."
    "The term 'too big to fail' must be excised from our vocabulary."
    "I am not embarrassed to be a banker."
    "We are totally open kimono with regulators." {Please Jamie, for everyones sake, keep you kimono closed!]

    Well, you get the idea...

  3. It's about price. Can the price of homes go up 2-4% each year to help get equity back to the homeowner. Buried in Dodd-Frank is the requirement to have all foreclosure and non-performing debt sold off by 2017. Oh, and then they add a 5 year buffer and say it REALLY has to be sold off by 2022. That's your end of the housing bust. When quantity of homes match people actually paying for them, then the price is set, and we can continue going north.