US Businesses Growing Concerned Over Federal Deficit, Says J.P. Morgan (NYSE:JPM)


Wednesday, May 5th, 2010

Jamie Dimon, CEO of J.P. Morgan Chase & Co. (NYSE:JPM), said in a talk to business executives attending a meeting of the Business Council, that business leaders are starting to get very concerned about the long-term consequences of the deficits of the U.S. government, as it continues to increase in the entitlement culture expanding under the Obama administration.

Specifically noted by chairman and CEO of Caterpillar (NYSE:CAT), Jim Owens, was the increasing costs of Medicare and Medicaid, which Owens said was an "unsustainable, untenable situation with the deficit in the near-term future."

Owens added that the cost of Medicare and Medicaid is growing faster than gross domestic product, and is the core of a very large problem as a result of the increased spending as a result of health-care.

Owens, who is chairman of the business council, said if something isn't done to deal with the situation, we're headed for a "train wreck."

while Dimon said there are some positive signs in the economy, the entitlement culture can't be sustained at these levels, and unless that's cut back, or we're taxed to death, it won't matter what the economy does, as it can be paid for.

Just look at the sovereign debt crisis in Europe to see that you can't develop a culture of entitlement and expect the productive to pay for it. It doesn't work.

While that wasn't specifically state, that is the road we're travelling on if we don't slash entitlement programs.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: business council , federal deficits , jp morgan , sovereign debt crisis

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Comments:

Cheryl (May 6, 2010 5:50 PM)
Dimon forgot to mention the entitlement culture on Wall Street and in Corporate America. He makes money for producing absolutely nothing and dares to comment on who is productive and who isn't. How much does he spend bribing, excuse me, lobbying politicians to set the rules in his and his crony's favor, which allows him his penthouse and someone to follow him around holding an umbrella over his head. He and his Wall Street gang cost this country trillions of dollars and 8 million jobs and he thinks we are the problem.
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