Enter multiple symbols separated by commas

Jamie Dimon Warned of a Recession While Bernanke Was Still Clueless

Jamie Dimon
Mark Wilson | Getty Images
Jamie Dimon

In January of 2007, Jamie Dimon warned that an uptick in mortgage defaults might indicate that a recession was coming.

The chief of JPMorgan Chase was speaking to an audience gathered at the Waldorf-Astoria hotel in New York City for Citigroup's annual financial services conference. Defaults were rising in the bank's mortgage portfolio, Dimon said. He added that the bank was positioning itself to withstand a downturn in the economy.

It just so happens that on that very same day, the Federal Reserve's Federal Open Market Committee released a very different view of the economy and the housing market.

"Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters," the FOMC said.

Eleven months later, in December of 2007, the recession officially began. Dimon saw it coming. The Fed didn't.


Questions? Comments? Email us atNetNet@cnbc.com

Follow John on Twitter @ twitter.com/Carney

Follow NetNet on Twitter @ twitter.com/CNBCnetnet

Facebook us @ www.facebook.com/NetNetCNBC

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.