What? No tweets from Current Occupant about how only he and he alone could produce a recordsetting, never-happened-before drop in the stock market???
Even Obama never was able to match this!! Under Hillary it would have been a very small, very wussy drop. Nothing to compare with his own superfantastic achievement.
The catalyst for the latest sell-off came in jobs figures last Friday showing that wage growth in the U.S. was creeping higher.
I canât possibly be the only one who notices, but nothing offends Wall Street more than the thought of workers getting paid a little bit extra. Wall Street traders are a million-fold the enemy of American workers, as the immigrants who American businessmen hire illegally.
Well the real fear was supposedly that the fed will raise rates. Donât know why that scares so many investors, but maybe thatâs why I not a billionaire that got rich off the stock market.
After a hundred or so tweets and rally boasts and SOTU victory laps, El Pendejo Gordo decides to STFU. At least President Obama was smart enough to not tie his success to a capricious stock market.
Gordo y corto!
Itâs beginning to look like freefallâŚ
In PRE-MARKET FIGURES, it has already dropped almost 600 points.
Hang on, folk, this may be a wilder ride than 2008.
I hope, desperately, that I am wrong.
But, I believe, for the first time since Greenspan carelessly coined the term, Wall Street was actually suffering irrational exhuberance because of Trump.
The past year without corrections is proof enough, they were running on orange fumes, not confidence.
PROFIT CONTROL! Two words the billionaires and their lackeymillionaires hate, that would ameliorate this issue permanently.
Take just a quarter of those exhorbitant profits and turn it into wages!
Then EVERYONE profits, not just the privileged class. And even THEY are always assured of their comnfort, even their largesse, but for some reason it isnât enough for them to own nearly everythng, apparently there must be a class of impoverished sufferers to look down on with contempt, or they just donât feel superior.
They NEED poor huddled masses to make them feel big. I mean, what is money for in the first place?
Nothing to see here. Everythingâs just fine. Move along now, and pay attention to something else. Look: car chase!
âŚTake just a quarter of those exhorbitant profits and turn it into wages!
Then EVERYONE profitsâŚ
Yeah really we put it right back into their companies buying shit that probably has a higher mark up than the current low interest rates and even higher than stock market gains before this drop.
Wow. Those $1.50-a-week raises just ruined everything.
- Obama isnât a fuckinâ moron, Donald is.
Donald told us weâd get tired of winning. He was right?
but nothing offends Wall Street more than the thought of workers getting paid a little bit extra.
30 yrs of depressed wages for the American worker and now the idea of a wage increase is unacceptable? And itâs still chump change - in the scheme of things. Corporate America has been borrowing money at close to zero % for ten fucking years with an effective corporate tax rate in the mid teens. And now theyâre getting a 40% rate deduction, plus keeping their loopholes and subsidies for an effective rate approaching single digits. And theyâre bitching about wages! Fuck WS, itâs not really relevant to the American economy. And while weâre at it letâs nationalize the banks. Fuck Eric Holder too, the Megabanks and âToo Big To Jailâ.
Issue isnât the drop, although itâs historically bad. The issue is the reason for the drop. There is general concern that interest rates arguing to go up because the tax bill is exploding our debt. The govât will borrow $1 trillion this year, an 85% increase over last year in an economy that is at full employment. This bill was supposed to create a $1.5 trillion hole over 10 years. Weâre reaching that net number much faster initially and hoping that growth and revenue will offset.
Hereâs the thing: weâre not getting that growth this year because we have no capacity to add workers and companies arenât investing to scale productivity. So, itâs possible that the market is reacting to a scenario where we have runaway debt, declining govât revenue, higher long-term rates causing the Fed to hike short-term rates, all of which has an inflationary impact on an economy at full employment which could cause a cut back or slow down in business investment.
Without leadership at the helm to react and plan to avoid such consequences, it makes the risks of such scenarios higher.
Kansas, on steroids.
They hoped against hope, even as the economy tanked mercilessly. Their anticipated influx of new companies just never happened, and the tax breaks they made to lure them in became a fiscal black hole.
There was NO relief until they told Brownback âNOâ and re-established some taxes they eliminated when Brownbackâs Tea Mob in the legislature took over.
It still hasnât corrected, until we are rid of these delusional mid-20th century state legislators, we wonât see it actually improve, it is just running always on empty.
Whoodathunk there wouldnât be and magic fluffy unicorn farts to pay for the tax giveaways?
Yep. Ray Dalio agrees.
[Weâve Just Had a Taste of What the Tightening Will Be Like][1]
Excerpt:
Hereâs what happened.
Over the past week or so, we had reports of strong growth and rising wages (good things!), which sent bonds and stocks down (bad for most investors) due to justifiable fears that the Fed will tighten faster than is priced in the credit markets.
The surge in growth and wages came because of both the fiscal stimulation and the rekindling of animal spirits, thrusting the economy into late-cycle capacity constraints, which is leading to the expectations of faster Fed tightening.
In other words, fiscal stimulation is hitting the gas, which is driving the economy forward into the capacity constraints, which is triggering interest rate increases that are hitting the brakes, first in the markets and later in the economy. This confluence of circumstances will make it difficult for the Fed to get monetary policy exactly right.
This is classic late-cycle behavior (when itâs difficult to get monetary policy exactly right, which leads to recessions), though it is more exaggerated because the durations of assets are uniquely long, which means that when interest rates are low, prices of assets are more sensitive to changes in interest rates than when interest rates are high.
[1]: https://www.linkedin.com/pulse/weve-just-had-taste-what-tightening-like-ray-dalio-1
Thatâs the picture but the scariest part will be how the idiots in the WH react. Weâll go past that 1 trillion faster than Nunes and staff can create Memo II. Maybe itâs a good thing as we get closer to November but itâs still a clusterfuck either way. Love to see how the administration explains this away. Even the stoopids understand a bad economy but how long will they put up with the bullshit coming at them these next six months?
Trump and his apologists own this, completely!
I really wish that capitalism guaranteed perpetual growth. Itâs not like the earthâs resources are finite, so why must our economic systems be any different? Perpetual growth for the planetâs exponentially expanding human population should be a given.