Not Trump's EconomyWho's to blame for the stock market drop? Peterffy told CNBC, "if the Democrats take only the House," the founder of Interactive Brokers said, "the market could face a 2% or 3% decline in equity values." For the last couple of years, there have been a lot of people who have said that this is still the Obama economy. Now, they are saying that Trump’s economy that has finally kicked in. This is the third time that they've made the mistake of saying this, only this time the downturn in the NYSE and NASDAQ has been prolonged enough, so that they're hedging their bets that it keeps falling. People are concerned and it's legitimate to be concerned about Trump entering into a war with his own Federal Reserve. Specifically because if the Fed has as much power as most people think they do, they can collapse the economy fairly quickly by raising interest rates. Here's the funny part. The Fed and all of these economists are coming out and saying that the economy is strong enough so that they can raise interest rates and it's not a problem. In other words, they 're saying that over eight years of Obama, when they left interest rates alone over and over and over again, they didn't have confidence in the economy? So, in other words, all of these leading economists, and indeed the Fed itself and the Democrats are trying to say that they did not have faith in the Obama economy? They do however have overestimated faith, it seems, in the Trump economy. They want Trump out. They're trying to take the advice of some of these comedians who have talked about it, like a like Bill Maher who hope for a recession. It's the only way Trump will be kicked out, by the way. Yes, that is his one major vulnerability. An economic downturn. But here's the problem. Here's the BIG problem. The stock market doesn't entirely correlate with the economy as a whole. The fact that NASDAQ goes down could be indicative that there's a company in NASDAQ that's doing very poorly. Like oh, I don't know say Facebook, Twitter and probably Google (which is a little bit more sheltered, more diverse and has fewer problems). Facebook has been wiped out this year. Any guesses as to how many years of gains and their net value were wiped out just in the last six months at Facebook? What about at Twitter? It's a huge, huge amount of loss. It's catastrophic. Then of course, there is a trade war going on. Ah, but Trump has already won the trade war in Europe with regards to the automotive sector. He has won with the new NAFTA renegotiation. That wasn't a problem at all. He's beginning to win in China. They've reset and reduced some of their tariffs and gotten rid of a few others. The trade war is scaling down there. Trump's trade wars and and decision making has not harmed the economy at all. It's not what's causing the stock market downturn. If anything, it has to do with Wall Street being fearful of investing because the Democrats are about to take the House. In a November 6 article in Marketwatch, Florida billionaire Thomas Peterffy said, “ if the Democrats take only the House, the market could face a 2% or 3% decline in equity values.” They're worried that the growth is going to stall out because Trump won't be able to continue delivering any form of tax reform. He's not going to be able to continue fighting his trade wars now, with one arm tied behind his back. They'll attempt to weaponize the judiciary against him as well. They might want to put things on hold for a while and see what Palosi is going to do. That's what's responsible for its uncertainty. If you're investing you don't want uncertainty. You want a very high order of probability that your investment brings a return. If you think that there's a good possibility that that's no longer going to happen, consumer confidence goes down, business governance goes down, because Trump no longer has the consent of the House.* They'll probably be investing less. They'll have a bit of a slow down. The down turn would have to be larger than it currently is for it to really impact unemployment which is low, or wage growth which has been fairly steady, and job growth which is on par with what we need. We shouldn't expect it to be another great recession at this moment. That's not what's indicated. The market is in a correction at the moment.
The Fed has too much autonomy and they need to be audited and restricted. Congress should be in charge directly of our monetary system. The government should be directly responsible so that they have to take the blame when things go wrong. And it's not just Trump. He's just the head of the Executive Branch. The states have their own governments that have an economic impact as well. Private individuals, private businesses, certainly large corporations, (especially Silicon Valley) and certainly what the legislature does. But it is very funny to see the same people who said, it's not the Trump economy, all of a sudden are saying, no, no, it's 100% Trump now. Trump is not responsible for your stock portfolio. He is not responsible for Twitter's downturn. It had everything to do with censorship or user privacy. Zuckerberg isn't responsible for the value of Facebook stock? Only Donald Trump is? How strange is it when they make these claims? Look at how these companies have performed. Very, very poorly over the last six months.
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