J.P. Morgan Chase CEO Jamie Dimon released his annual must-read letter to shareholders on Thursday, and bashing socialism, defended stock buybacks and talked about some potentially dangerous days ahead.
"When governments control companies, economic assets (companies, lenders and so on) over time are used to further political interests – leading to inefficient companies and markets, enormous favoritism and corruption," Dimon wrote in the letter, which was released along with the bank's 2018 annual report.
"Socialism inevitably produces stagnation, corruption and often worse – such as authoritarian government officials who often have an increasing ability to interfere with both the economy and individual lives – which they frequently do to maintain power. This would be as much a disaster for our country as it has been in the other places it's been tried," he added.
Dimon in his annual letter, which is required reading every year for Warren Buffett and others on Wall Street, acknowledges there are flaws with capitalism and that it should be combined with a strong social safety net.
"I am not an advocate for unregulated, unvarnished, free-for-all capitalism. (Few people I know are.) But we shouldn't forget that true freedom and free enterprise (capitalism) are, at some point, inexorably linked," Dimon said.