Presidential stupidity on display

Tsing Tao

Tsing Tao

The man says and does some really dumb things, and then he does some really good things. This is not one of the latter.

TRUMP SAYS MARKET CORRECTION IS CAUSED BY FEDERAL RESERVE
TRUMP SAYS HE IS NOT GOING TO FIRE POWELL

To go after the Federal Reserve for trying to shrink its massive balance sheet and to bring rates into a realm of historical normalcy, and to make these types of comments after one and a half days of market correction (assuming that is even what it is at this point) is beyond stupid.
 
Tsing Tao said:
The man says and does some really dumb things, and then he does some really good things. This is not one of the latter.

TRUMP SAYS MARKET CORRECTION IS CAUSED BY FEDERAL RESERVE
TRUMP SAYS HE IS NOT GOING TO FIRE POWELL

To go after the Federal Reserve for trying to shrink its massive balance sheet and to bring rates into a realm of historical normalcy, and to make these types of comments after one and a half days of market correction (assuming that is even what it is at this point) is beyond stupid.
More...

The world is awash in debt... to the tune of $250 TRILLION... $21 Trillion in the US, not counting unfunded liabilities, of course. Who repays that? How does it all get resolved? Are we NEVER to balance that out, or do we just keep "running up the tab" until all financials implode?

Of course Trump wants "perpetual cheap money and expansion" on his watch... leave the clean-up to the next president. That's childish, greedy and petulant.
 
There is no way to determine how to balance it out if the Federal Reserve is free to create trillions on their own. This is not a closed system. We could be 21 trillion in debt and the Fed could have printed and extra 21 trillion which has been absorbed into the world economy.

I just do not see how we can reconcile a system into balance when we have no control of the most important factor.... money creation.

Scataphagos said:
The world is awash in debt... to the tune of $250 TRILLION... $21 Trillion in the US, not counting unfunded liabilities, of course. Who repays that? How does it all get resolved? Are we NEVER to balance that out, or do we just keep "running up the tab" until all financials implode?

Of course Trump wants "perpetual cheap money and expansion" on his watch... leave the clean-up to the next president. That's childish, greedy and petulant.
More...
 
Remember when Presidential candidate Trump said this:

"Believe me: We're in a bubble right now. And the only thing that looks good is the stock market — but if you raise interest rates even a little bit, that's going to come crashing down," Trump said. "We are in a big, fat, ugly bubble. And we better be awfully careful."

​
Then a little more than a year later:

"DOW RISES 5000 POINTS ON THE YEAR FOR THE FIRST TIME EVER — MAKE AMERICA GREAT AGAIN!"
​
 
Tsing Tao said:
The man says and does some really dumb things, and then he does some really good things. This is not one of the latter.

TRUMP SAYS MARKET CORRECTION IS CAUSED BY FEDERAL RESERVE
TRUMP SAYS HE IS NOT GOING TO FIRE POWELL

To go after the Federal Reserve for trying to shrink its massive balance sheet and to bring rates into a realm of historical normalcy, and to make these types of comments after one and a half days of market correction (assuming that is even what it is at this point) is beyond stupid.
More...

Trump understands that after falsely taking credit for stock market strength since he got elected that a market correction at this point makes him look bad. We are only weeks ( days ? ) from numerous posters on this site crediting Trump for a strong stock market. In reality, a stronger stock market existed despite Trump and his efforts to ruin it with bad trade policy. The tax cuts helped short term but there is a price to be paid on that down the road.

The real US economic downturn and related market correction is more likely in 2020 in my opinion. If it is delayed enough to get him a second term I expect he'll have a similar legacy to George W. Bush where the real impact of his policies takes a more obvious hold in the second term and the net result over 8 years is mediocre at best on key economic measures and stock market performance. Given his federal deficit ( reported today at record levels, 5% of the GDP ) and punitive nature of his trade ideas, I can't see this working out well for the US if he lasts more then 4 years.
 
Nine_Ender said:
Trump understands that after falsely taking credit for stock market strength since he got elected that a market correction at this point makes him look bad. We are only weeks ( days ? ) from numerous posters on this site crediting Trump for a strong stock market. In reality, a stronger stock market existed despite Trump and his efforts to ruin it with bad trade policy. The tax cuts helped short term but there is a price to be paid on that down the road.

The real US economic downturn and related market correction is more likely in 2020 in my opinion. If it is delayed enough to get him a second term I expect he'll have a similar legacy to George W. Bush where the real impact of his policies takes a more obvious hold in the second term and the net result over 8 years is mediocre at best on key economic measures and stock market performance. Given his federal deficit ( reported today at record levels, 5% of the GDP ) and punitive nature of his trade ideas, I can't see this working out well for the US if he lasts more then 4 years.
More...

The first sentence of your rant is all I agree with. This has nothing to do with Trump's policies, but is the natural correction of making debt more expensive (raising rates) after a binge period of massively low cost credit fueled by asinine Federal Reserve monetary policy dating back to Bernanke (this time). The previous cluster was Greenspan's fault. This one belongs to Bernanke and Yellen.
 
Scataphagos said:
The world is awash in debt... to the tune of $250 TRILLION... $21 Trillion in the US, not counting unfunded liabilities, of course. Who repays that? How does it all get resolved? Are we NEVER to balance that out, or do we just keep "running up the tab" until all financials implode?

Of course Trump wants "perpetual cheap money and expansion" on his watch... leave the clean-up to the next president. That's childish, greedy and petulant.
More...

I'd suggest we crossed the Rubicon in 2008-09.
 
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