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Economy
California is a greater risk than Greece, warns JP Morgan chief
2010-03-01
Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.

Mr Dimon told investors at the Wall Street bank's annual meeting that "there could be contagion" if a state the size of California, the biggest of the United States, had problems making debt repayments. "Greece itself would not be an issue for this company, nor would any other country," said Mr Dimon. "We don't really foresee the European Union coming apart." The senior banker said that JP Morgan Chase and other US rivals are largely immune from the European debt crisis, as the risks have largely been hedged.

California however poses more of a risk, given the state's $20bn (£13.1bn) budget deficit, which Governor Arnold Schwarzenegger is desperately trying to reduce.
Posted by:Fred

#7  I wouldn't invest in either Greece or Caliphornia.
Posted by: Barbara Skolaut   2010-03-01 19:11  

#6  Everybody in state government here is convinced Oblahblah and Pelosi are going to cut a check to solve this. Only problem, is that there is not much manufacturing left, agriculture has been devastated by the water cutoff to save the fishies, and send more and more to L.A. to water lawns. SO, aside from trading money around to each other for services, there really isn't an economy left to create all those "jobs", except with other people's money via the federal spigot. So relax other 49 states, we are your new dependants, and we won't even say thanks.
Posted by: NoMoreBS   2010-03-01 19:02  

#5  What would ultimately be nice would be either national right to work or a ban on unionization for those whose payroll is made out of tax revenue. Both are pretty unlikely, however, just as universal honesty and responsible citizenship are unlikely.
Posted by: M. Murcek   2010-03-01 13:00  

#4  And don't forget who took California to insolvency...the Democratic controlled government, SEIU, Sierra Club, liberal judges who says that felons in jail must have Cadillac health coverage, trial lawyers and the CA Teacher Association. And Brown for the next Governor? Yeah, just what the doctor ordered.
Posted by: HammerHead   2010-03-01 09:22  

#3  "We don't really foresee the European Union coming apart."

The 'experts' at the CIA didn't foresee the Soviet Union coming apart either. Notice that it fractured along nationalistic/ethnic lines regardless of the 'dreams' of transnationalists. When the time comes, those same transnationalists, who've ignored the national borders of the US adding to the very financial crisis, will appeal to 'national' unity for sacrifice. YJCMTSU
Posted by: Procopius2k   2010-03-01 05:19  

#2  This could very well be what the Obama's 'health care' legislation is really all about.
Posted by: Besoeker   2010-03-01 01:29  

#1  Read, ITS ONLY GREECE, as per the size of CA's economy vee the rest of the World.
Posted by: JosephMendiola   2010-03-01 01:26  

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