If truth be told, a hard Greek default would VAPORIZE JP Morgan due to BILLIONS in credit default swaps sold by The Morgue to holders of Greek debt- if not instantly, by starting a domino cascade that would vaporize at least a dozen Western banks when the dominoes toppled Italy and Spain.
The only possible reason Jamie Dimon could express "little concern" over the developments in Greece is that he has been given assurances that the ECB and The Fed will engage in QE to Infinity...AND BEYOND, and such a default will not be permitted- at least labeled as such.
The impact of a Greek default on American banks would be negligible, JP Morgan Chase CEO Jamie Dimon told CNBC on Thursday, and while there are chances of a bad outcome in Europe, he is not concerned about unpleasant surprises in the region.
"The direct impact of a Greek default is almost zero," Dimon said.
"The effect it has on the global economy will obviously filter down to the American banks too," he added, but although "there may be a surprise somewhere", he expressed little concern over such a development.
"There's a teeny chance of a catastrophic outcome, which is why the muddle-through is the only good strategy. There is no other good strategy," the JP Morgan Chase (NYSE: JPM - News) CEO said.
Not wanting to diminish Europe's problems, Dimon said Greece, Portugal and Ireland were not the main issue.
"The real issue is Spain and Italy," he said.
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