Following up on a post from last week about highly-anticipated market analysis from Deutsche Bank, the analysis in question — at least according to the Financial Times article that reported on it — displayed some pretty brilliant hedging:

“This can be a very slow-moving train and it still has a long way to run,” said Karen Weaver, the global head of securitisation research at Deutsche Bank, at an industry conference on derivatives in Barcelona organised by the bank. … Ms Weaver said that the turmoil was producing elements of the “good, the bad, and the ugly”. “The important thing is what it does to the overall housing market. When many borrowers become forced sellers, it reprices the entire housing stock,” she said. “The concerns in US home prices now under way could derail consumer spending and precipitate a US recession,” although she said this remained a small risk.

JP Morgan CEO Jamie Dimon echoed a similar sentiment this past weekend, according to a story appearing on the Forbes Web site:

Morgan Chase & Co chief executive Jamie Dimon told Germany’s Spiegel magazine that problems in the US sub-prime lending market will not create a recession in the world’s largest economy. He added that the situation was worse than most observers thought, but that the US economy will benefit from the fact that the rest of the world is still experiencing strong growth.

I’d like to know who Dimon counts among “most observers.”