Senators Displayed “An Unnerving Ignorance of Market Economics” During Goldman’s Hearings : JPMorgan Note

James E. Glassman, a managing director and senior economist at JPMorgan (JPM) told clients Monday that senators showed “an unnerving ignorance of fundamental principles of market economics” during last week’s Goldman Sachs 11-hour hearing.

“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”, Glassman said. “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.”

Glassman also said that “Goldman was no more culpable in the housing debacle than Congress.”

“It’s time for the grownups to step in,” he added.

Obviously, there is way too much rhetoric and finger pointing on both sides. And things certainly tend to get more complicated when another major Wall Street player, like JPM, points out how everything is in fact someone else’s fault. All told, I guess the best conclusion in this matter can be reached by quoting Henry Ford who said “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Read the full Glassman memo below:


JPMorgan Chase Analyst Takes Aim At U.S. Senators

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