WASHINGTON - The credit crisis is 75% to 85% unwound in terms of the financial markets, but the economy may still be on shaky ground, saidJamie Dimon, chairman and CEO of JPMorgan Chase, to the 1,500 delegates assembled here for the Investment Company Institute's 50th annual general membership meeting. "I would say this thing has largely already worked its way through. It probably won't get worse at this point. Increased capital requirements will take about six months longer" to bring markets and counter-party risk tolerance back to normalcy, Dimon said.
However, he was quick to add: "The recession, I don't know. To paraphrase Yogi Berra, it's hard to make predictions, especially about the future." Markets perform in cycles, Dimon reminded executives, listing the 2001 technology bubble, Long Term Capital Management's overleveraged exposure to Russia in 1997, the real estate and savings and loan crisis of 1990, overvalued earnings in 1987, the recession of 1982 and the oil shortages in 1974.