J.P. Morgan Economist Calls Senators ‘Ignorant’

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Tuesday, May 04, 2010 at 5:56 pm

The Huffington Post’s Shahien Nasiripour, a great financial reporter, has a good piece on a top executive at J.P. Morgan Chase trashing Sen. Carl Levin (D-Mich.) and the Hill in general. James Glassman, a Morgan senior economist, writes a note to his clients bashing the financial regulatory reform process and senatorial “ignorance”:

From the perspective of economic literacy, last week’s [Levin's hearings] had to be, well, not memorable, or inmemorable (as infamous is to famous)… The hearings exposed an unnerving ignorance of fundamental principles of market economics by folks who have a hand in remapping rules of finance that will be with us for a while. Flip assertions about what is and is not socially valuable reflect a confusion about our market economy that is as fundamental as knowing that George Washington was the first president of the United States.

He also labels one graph, “People in glass houses shouldn’t throw stones,” referring to the high unemployment rate in Levin’s home state of Michigan.

Sounds to me like Glassman should take his own snooty advice. J.P. Morgan suffered massive losses due to its exposure to the subprime mortgage market it ostensibly did not understand. It received a $25 billion bailout from the American taxpayer. So, his moaning that “low level of economic literacy is plaguing financial reform” rings false in my ears. It was Wall Street’s “low level of economic literacy” that necessitated financial reform in the first place.

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Comments

11 Comments

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Pingback posted May 4, 2010 @ 8:21 pm

[...] J.P. Morgan Economist Calls Senators ‘Ignorant’ « The Washington Independent [...]


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Comment posted May 5, 2010 @ 12:09 pm

I don't think the word is “ignorance” as much as it is the word “bribed”


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Comment posted May 5, 2010 @ 2:24 pm

yeah thanks to JP Morgan's buddies in the credit ratings agencies, GM had been trying to restructure its debt but they were continually downgraded to near junk, which meant higher interest rates and less money to keep the company from being bailed out by the taxpayers.

P.S. we are a disaster here in Michigan.


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Pingback posted May 9, 2010 @ 5:13 am

[...] J.P. Morgan Economist Calls Senators 'Ignorant' « The Washington … [...]


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Comment posted May 9, 2010 @ 4:50 pm

Good for JP Morgan for pointing this out. This guy told the truth. The Senators don't know anything about markets, how they work, or what they do or don't do.


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Comment posted December 31, 2010 @ 7:46 am

Love the post and it took me a long time to scroll down to the bottom with what everyone had to say.


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Comment posted December 31, 2010 @ 7:46 am

Love the post and it took me a long time to scroll down to the bottom with what everyone had to say.


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