Free Republic

PICKER: A lot of people have criticized market structure right now, levered ETFs, positioning and so forth. How concerned are you about the proliferation of levered ETFs on single stocks? DIMON: Well, leverage ETFs on their own are quite small. So I’d say not really. But there is what I call market leverage, prime broker leverage, hedge fund leverage, ETF leverage, treasury arbitrage leverage. I’m double-counting some of that. So, the market leverage is pretty high. Now, of course, we manage it client by client. And so you have seen disasters that people lose a lot of money, nothing really...

Recessions and stock market crashes are inevitable in a market-based economy, but few Americans realize that their investments face risks far greater than falling stock prices. Because of largely unknown legal changes, millions of Americans could temporarily or even permanently lose their retirement and other investment savings in the next major financial crash, all while too-big-to-fail Wall Street firms and banks are protected. That might sound like a wild conspiracy theory, but the danger is real and well documented. How Wall Street centralized ownership of your investments Beginning in the 1970s, at the request of powerful Wall Street and banking...