Guest Post: On Jamie

Tyler Durden's picture

Submitted by John Aziz of Azizonomics blog,

Warren Buffett wants to give Jamie Dimon a job:

On the Charlie Rose show [last month], Buffett was asked what kind of message it would send if President Obama picked Jamie Dimon or another Wall Street banker to succeed Timothy Geithner, who has expressed a desire to leave the post after Obama’s first term.

 

“I think he’d be terrific,” said Buffett, chairman of Berkshire Hathaway, about Dimon. “If we did run into problems in markets, I think he’d actually be the best person you could have in the job.”

 

Buffett added that Dimon would have the confidence of world leaders if he were appointed to the Treasury post.

Warren Buffett is one of America’s biggest bailout beneficiaries, having profited hugely from buying into firms whose assets were subsequently bailed out. Shortly after the crisis began in 2008, Warren Buffett loaned money to, and bought options from, Goldman Sachs, seemingly with the knowledge the bailout of AIG — a counterparty to which Goldman had massive, massive exposure — would take place.

Dimon as Treasury Secretary would intend more of the same. Dimon and Buffett and others like them believe in having their cake and eating it. They seem to believe that the U.S. taxpayer should provide a liquidity lifeline to their fragile and risky too-big-to-fail businesses, but without at the same time demanding any regulatory oversight to prevent too-big-to-fail banks from acting irresponsibly.

The Financial Times noted in 2011:

Jamie Dimon, chief executive of JPMorgan Chase, launched a broadside against financial regulation on Wednesday, warning that new capital rules could be “the nail in our coffin for big American banks”.

 

Regulators are negotiating international capital standards for the biggest banks but Mr Dimon said setting the new requirements too high, or allowing overseas banks to calculate their asset base differently, could disadvantage US banks and was already stifling economic growth.

 

If you want to set it so high that no big bank ever goes bankrupt … I think that would greatly diminish growth,” he told a US Chamber of Commerce conference. Too large a disparity in capital requirements between Europe and the US would mean “you’re pretty much putting the nail in our coffin for big American banks,” he said.

What this really amounts to is a lack of skin in the game. Big banks can gamble and speculate without remorse and without risk — if they win they keep the proceeds, and if they lose the taxpayer will pick up the pieces. This destroys the market mechanism, and any hope of self-regulation. Were lessons learned from 2008? If the antics of Corzine, Kweku Adoboli and the London Whale — just three big financial blowups in the last year — are any guide, big finance is acting just as irresponsibly and self-destructively as before the crisis.

Buffett and Dimon surely have in mind more cronyism, bailouts and free lunches, but the reality of the next four years and beyond may be very different indeed.

While it is impossible to predict exactly when the next crisis will emerge, the current slump in capital goods orders, the intractable debt overhangand the general trend of ditching the dollar as a reserve currency do not look good. As one of the architects (both practically and ideologically) of the current mess, Dimon as Treasury Secretary would at least get all the blowback and blame when the bubblecovery finally implodes into a currency or supply chain crisis that cannot be bailed out through liquidity injections.

JamieCoyote

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Alcoholic Native American's picture

Yea and he bailed out the local propaganda papers around here.  The man is a total POS welfare queen.  Him and his son.

helping_friendly_book's picture

He bought our local paper also. I'm so sick of his kind. Hank Paulson told all the banks exactly what was going to hapeen so they could front run while keeping Congress (the people) in the dark until his three page memo to Congress saying sign or the world will end tomorrow.

When they attack Manhatten again I won't shed a tear.

asteroids's picture

True, but the population keeps on electing men of weak intellect and non-existant moral character. You get what you pay for.

Abrick's picture

I think their compensation would point to the inverse of getting what you pay for.

helping_friendly_book's picture

I wouldn't use the term electing!

Rigging DieBold machines with the choice of a few Jews at the Bilderburger meeting ain't exactly an election.

Then putting Karl Rove on to blow a gasket and make the whole operation seem so real....Classic.

They did pay for those TV commercials though. That was a media mini stimulus package.

Stoploss's picture

Oh let me guess, every body is going to work for "the bank" or "the government".

Sweet, it's working out great in Europe.

Intelligence_Insulter's picture

The government does not create jobs.  Free market capitalism is the best path to prosperity.

LawsofPhysics's picture

That would require letting bad business models, bad ideas, and bad management fail.  Can't have that, remember, "everybody is a winner".

< sarc off >

redpill's picture

Just when you thought government and large banks couldn't be any more closely related, they (don't) surprise you by suggesting an entirely new level of crony incest.

JPM Hater001's picture

I'm really rooting for the guy.

I think Government Oligarchy will win the, "Most likely to disappear in an aweful way" category.

Janies Got a gun.... http://youtu.be/RqQn2ADZE1A

 

Stoploss's picture

Obozo, Ben, and Timmy disagree with you.

I do not.

whatsinaname's picture

The newspaper publishing may end but he gets to pocket the associated real estate properties for pennies. I think he is doing very well on those newspaper deals.

helping_friendly_book's picture

He bought our local paper also. I'm so sick of his kind. Hank Paulson told all the banks exactly what was going to hapeen so they could front run while keeping Congress (the people) in the dark until his three page memo to Congress saying sign or the world will end tomorrow.

When they attack Manhatten again I won't shed a tear.

LawsofPhysics's picture

Getting someone else to pay and suffer for your private  mistakes and failures is what fascism is all about.  Come on sheeple, wake the fuck up, these guys are pros.  The socialization of private losses and capital mal-investment and mis-allocation continues...

 

On top of that, banks all over the earth seem to be very much still using "mark to fantasy" accounting.  Too bad the sheeple can't.

Same as it ever was.

LMAOLORI's picture

 

 

On that note

 

How the Government Is Coming After Your IRA and 401(k) Plan

http://www.economicpolicyjournal.com/2012/12/how-government-is-coming-after-your-ira.html

 

 

Jamie Dimon is O's favorite banker he loves him some Jamie they go way back to Chi Town on the bailed out buffoon his firms got $95 Billion in bail out money and the big joke is Obama doesn't want to close tax loopholes so when they raise taxes it won't even affect buffet. It will however affect the middle class so once again O's wealthy friends escape both from taxes and from criminal prosecution.

Obama On Tax Cuts: President Rejects Republican Plan To Close Loopholes

http://www.huffingtonpost.com/2012/11/14/obama-tax-cuts_n_2131256.html

John Boehner: Raise Taxes on the Rich

snip

 

“Now there are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates, which we believe will harm our economy,” said Boehner.

“Listen, our members believe strongly that raising tax rates will hurt the economy,” said Boehner. “Closing loopholes, especially on those who are wealthy, is a better way to raise this revenue than raising rates, because raising rates will hurt the very people that we're expecting to help create jobs in our country.”

 

http://cnsnews.com/news/article/john-boehner-raise-taxes-rich

Tax Payers With Income of Only $30,000 Face Annual Tax Hikes of $1,500

http://www.economicpolicyjournal.com/2012/12/tax-payers-with-income-of-only-30000.html

Middle Class--Not the Rich or the Poor--Pay Majority of Federal Taxes, Says CBO Data

http://cnsnews.com/node/68094

 

How Buffett Saves Billions On His Tax Return

Warren Buffett Is A Punk

 

snip

Meanwhile, Buffett has given each of his kids a charitable foundation with billions each to manage. If a foundation has $3bb in it, then something like $90mm can go to salaries.

http://techcrunch.com/2012/05/12/warren-buffett-is-a-punk/

 

 

 

 

 

Blankenstein's picture

The oligarchs' conference is tomorrow starring some of the most hated kleptocrats in America.  A handful of fluffers (Krugman, Sorkin, etc.) are thrown in to round out the day. 

 

http://nytdealbookconference.com/index.php

Sparkey's picture

Getting someone else to pay and suffer for your private  mistakes and failures is what fascism,  `intelligence`, is all about.

These folks are Capitalists, they `Own` things, the biggest and most lucerative business they own is their umbrella organization, the United States of America, if you had a business and you needed some money where would you go to get it? Naturally you would take it from your business, Why shouldn't Warren and Hank and the others take the money when they need it, if they did not in fact own it they couldn't take it could they?

virgilcaine's picture

How about the MSM silence on the fiscal cliff? shhh  they must be working on it diligently and in a bipartisan fashion..

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"Buffett and others like them believe in having their cake and eating it."

 

God almighty don't forget the "ice cream" too!  Buffett's companies only received $90,000,000,000.00 in TARP money.  It is called free enterprise!  Is Buffett a genius!?  Of course, he is a genius at working the system!

Tuco

ElvisDog's picture

Too bad the old fucker is going to die like the rest of us. What's he got, maybe 5 years? All those billions won't solve that little dilemma.

sdmjake's picture

On a long enough timeline the survival rate....

Joe Davola's picture

Although I'm no Jobs fanboi, but why did pancreatic cancer pick him over the old slobknobber.

ali-ali-al-qomfri's picture

at least Jobs I can see as an inventor with an artistic vision, however it too had/has a draw back. I recommend the documentary below. Buffet more tick like.

http://undergrounddocumentaries.com/resonance-beings-of-frequency-full-v...

GCT's picture

Tuco, you forgot to mention the killed pipeline in the USA because Buffett's trainline carries all the petro goods from Canada.  They are fucking assholes that want higher taxes, but do not whip out the checkbook and cut the USA a check.  They spend millions avoiding the taxes. Yes he can pay me what he pays his assistant, last time I checked it was 400k a year.

And the sheeple listen to this smuck.  

Jason T's picture

ravine.. we fell of the cliff in 2008 .. we're deep in the ravine.  

ElvisDog's picture

No kidding. The stupid fiscal cliff coverage seems to be 24/7 on the MSM.

Joe Davola's picture

you’re pretty much putting the nail in our coffin for big American banks

 

And what's the downside?

LongSoupLine's picture

My fucking head just exploded...

Miss Expectations's picture

Tell me... why Jamie would want to be Treasury Secretary?

BlueCollaredOne's picture

He would simply be completing the circle, just backwardly.

Usually you work for big gov and spend the time using your influence to insure a nice private sector position when you enter the private world, Jamie's doing it the other way around.

Does it make sense?  Of course not, Does anything make sense nowadays?  NOPE.

Maybe for the tax benefit a la Paulson?  Maybe to make sure his ass stays out of jail?

CoolBeans's picture

+1,000,000

Priceless.  This should be my new screensaver.  I hate that bastard.  I can't believe he kisses his children with that mouth.

BlueCollaredOne's picture

Dimon as treasury secretary is akin to the Daniel Snyder (owner of the Washington Redskins) taking a job as a NFC referee.  

Conflict of interest? Nahhhhh, just keep eating your GMO's sheep.

khakuda's picture

The worst with Buffett is that he never speaks up when he disagrees with the powers that be.  When asked if he though QE made sense, he finally responded no, but they practically had to beat it out of him and then he couched it by saying Bernanke knew more about that monetary stuff than he did.  Also, he let Obama redefine the Buffett plan to include everyone making over $200,000 per year instead of the minimum 30% tax rate on people over $1 million in income which he suggested.  Just sat there and let Obama change what he said and put his stamp on it.  Unbelieveble lack of integrity.  Total shill.

FMR Bankster's picture

I agree with your basic point about the bailouts. However, I'd just point out that Buffetts Goldman investment hasn't exactly been a huge winner. He did earn 10% on the pref stock for about 27 months (when it was paid off early at a 10% premium)but the warrents expire in less than a year and they are still out of the money. Considering the risk of investing then this seems like a high risk (helped by inside info) low return investment.

Dre4dwolf's picture

Well I have one thing to say.

Can't be worst than the clown running it now.

 

sdmjake's picture

i dunno...was taught not to put the 'Fox in charge of the henhouse'.

Zap Powerz's picture

So, more food stamps then?

We are a food stamp nation.  A nation full of humans that are incapable doing what is necessary to provide their own sustenance.  Think about that.  Millions of human beings that have been trained/bred to not survive on their own.

All so pricks like Jamie Dimon and Barack Obama can get rich and have power.  Power and wealth created by the misery and failure of other people.

We live in such a fucked up country now that approx 98% (minus the approx 2% that didnt vote for a D or and R) of the population votes for people that hate them, use them and destroy them and their families.

http://www.youtube.com/watch?v=NjUPb4Z2M_o

fuu's picture

Hey at least he's not a Goldmanite!

orangedrinkandchips's picture

Libya, Egypt, Iran (circa 1953-1980).....HERE WE COME.....LET'S JUST GO BACK TO ONE KING SO WE CAN ALL MOVE ON....slow death sucks

centerline's picture

These guys are smart.  No doubt.  But they are more connected that anything else.  It is about riskless business.  This is how they make a killing.  They can influence the game.  They can obtain information that other people can't get.  They can even get the laws written to make such actions legal... and hire armies of top notch lawyers to punch holes in everything else.  Etc. and so on.

Zap Powerz's picture

And, here is the hilarious part, they call themselves "capitalists"!!

 

The Count's picture

On another note....HSBC hat gotten a record fine for money laundering. BUT...where are the indictments? Why has their banking license not been revoked? How come has Lord Green who presided over HSBC during the time in question been since promoted to a minister position with the british government? 

In case you don't know...The royals still control the UK through the Bank of England and connected banks. The two party system is a sham. Just like here in the USA. And the persistent rumors that the royal family is involed in many very unsavory dealings has been proven by the HSBC scandal. Yet we are continuously made to believe how 'quaint and sweet' the queen and all the other bloodsuckers are. Kate and Andrew...get the fuck outta here.

jayman21's picture

And that other story was really a suicide?  Yea right.