Tags: JPMorgan | Dimon | Fiscal | Cliff

JPMorgan’s Dimon: Companies Won’t Hire Due to Fiscal Cliff Fear

By    |   Friday, 26 Oct 2012 07:10 AM

Chief executives of major U.S. corporations are already taking steps to insulate their companies from the nearing fiscal cliff of mandated tax hikes and spending cuts, JPMorgan Chief Executive Officer Jame Dimon told CNBC.

"I've spoken to CEOs who say, you know, absolutely, we are making decisions to protect ourselves from the fiscal cliff,” Dimon told CNBC-TV18 during a visit to India. Those steps include hiring and investment decisions.

Dimon was among more than 80 top CEOS who Thusday presented a declaration to Congress urging it to work on an accord to fix the deficit that would include raising more tax revenue and some spending cuts. It would also avoid running off the fiscal cliff in January.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

The fiscal cliff, which is mandated under a bipartisan agreement reached last year, “alone would take 3 percent or so out of GDP,” said Dimon. “That is a recession.” And people’s reactions “could actually make it worse," he added.

Dimon said the outcome of the November presidential and congressional election wasn’t as important as good fiscal policy to tackle the country’s mounting debt burden, CNBC reported.

"A fiscal cliff and another recession would be terrible for America,” Dimon said. “We should do everything we can to avert something like that.”

Congress, after the November elections, will have a small window to tackle the fiscal issue before the Christmas recess.

"We need good policy in the United States — think of a fiscal deal, a Simpson-Bowles type deal,” he said. “I think that would make a difference, and we would urge anyone who becomes president to try to get some of that done quickly."

Bloomberg News reported that companies are already hunkering down.

North America-based companies have announced plans to cut more than 62,600 jobs at home and abroad since Sept. 1, the biggest two-month drop since the start of 2010, according to Bloomberg. Firings total 158,100 so far this year, more than the 129,000 job cuts in the same period in 2011.

Colgate-Palmolive said yesterday it will cut 2,300 jobs, Bloomberg said. That adds to more than 5,500 cuts announced by DuPont Co., Dow Chemical, and Advanced Micro Devices Inc. this week. Ford is closing its first European car-assembly plants in 10 years.

The announcements come as a majority of U.S. companies are missing analysts’ third-quarter revenue forecasts and the focus turns to jobs in the last days before the election.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

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Chief executives of major U.S. corporations are already taking steps to insulate their companies from the nearing fiscal cliff of mandated tax hikes and spending cuts, JPMorgan Chief Executive Officer Jame Dimon told CNBC.
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2012-10-26
Friday, 26 Oct 2012 07:10 AM
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