The Fed has bought over 100 billion (and counting) US equities, China has bought over 150 billion, and Norway is now in the hundreds of billions close to 700. Not to mention all of the other sovereign wealth funds with no place to put their money with negative interest rates over seas. It has made many stocks extremely over priced.
Very reminiscent of Bush Jr; cut taxes, increase spending, slash regulations. Turned out well when the bubble popped.
slashing regulations in the financial industry ushered in such esoteric/risky financial instruments, such as credit default swap, laying down the tracks for the eventual financial industry meltdown during the last 2 years of GWB term https://en.wikipedia.org/wiki/Credit_default_swap
NYTimes article on this subject today: https://nyti.ms/2jogYeT Navigating a Breathtaking Level of Global Economic Change Andrew Ross Sorkin DEALBOOK NOV. 14, 2017 “Confidence” is a curious word. It is derived, in part, from the Latin word “fides” which translates to “faith.” It is a feeling, an inner voice. Just reading the headlines over the past year of what has seemed like a steady parade of crises and potential crises — North Korea, Russian interference in elections in the United States, post-Brexit Europe, hurricane damage — you’d think that any sense of “faith” in the global economy might be shaken, or at least, uncertain. Not so. In conversation after conversation with some of the nation’s top business leaders and chief executives last week, there is a stunning amount of genuine “confidence” in our economy here and, yes, even globally. “I’m very surprised,” Laurence D. Fink, the founder of BlackRock, the largest money manager in the world overseeing some $6 trillion, said at The New York Times DealBook conference last Thursday, describing his new sense of optimism. more at the link
Sadly some people are happy our economy is seeing turmoil in the stock market. Blinded by hate of Trump, they want a collapse just to have an arrow in their quiver against him.
I have a 401k. There's no happiness in watching an impulsive manbaby unfit for office wreck the stock market with his idiocy and instability.
So don't chastise Trump when the stock market is doing well....but also don't chastise him when the stock market is in the shitter? Trumpsters are odd.
Reminds me of when Bill Maher said he wants the economy crash so Trump won't get re-elected and all the zombies cheered.
For one, the ongoing trade war that he is responsible for, his threats of government shutdown, overall instability of his regime (markets love stable governments) and you could argue that his tax cuts while the economy was already doing well created a bubble that was bound to pop even though it was completely unnecessary.
That is so rich. I can name 5 things from the top of my head which will make me turn around support Trump if he did one just one of those 5 . What does Trump have to do in order for his supporters to drop him? Who's being blind here?
The trade stuff has been going on for awhile and for what it's worth the effects have not been significant. The govt shutdown amounts to very little ultimately, but yes markets traditionally react adversely to them in the short term. His deficits and interest spending increases are cause for worry but the market hasn't really cared too much about that. His administration has been a revolving door since the beginning and markets didn't have a problem with it before. Most of that turbulence is discounted. Was he responsible for the rally in the market? Did he create the global slowdown or sell off in high yield markets? Did he create extremely low unemployment, solid growth, a strong dollar, and an American economy that is largely immune to the global slowdown so far? Or is he only responsible for the negatives? Do think the market may have simply got ahead of itself and it is just correcting?
