Markets tanking - Trumps fault?

[RiverRat1]

So the entire stock market rise since Trump took office was because of Obama's policies. Now the markets tanking are 100% Trumps fault?

I swear people have become so stupid it can drive a person crazy.

Just wait until inflation sets in. We all should know it's coming. It should have hit 8-12 years ago. Interest rates should have never been below 1% much less at zero for years....All the while the FED was printing trillions. Gee what could go wrong with that?

But don't worry whatever bad happens will be Trumps fault. Forbid he support raising interest rates so savers stop getting the entire shaft.

[Johnny Dangerr]

Yup Obama set the next president up to fail.............

[sir shovelhands]

Live by the sword, die by the sword. Since Trump took full credit for the stock market doing well, then should he not take full credit for when it does poorly?

The real truth of the matter is that people don't understand that Presidents' don't have absolute control over the economy. They don't get to push a button that makes it do well or poorly. The fed (which is independent of any branch of the gov't) has an affect on the market by raising or lowering interest rates. Policies like taxes, subsidies, and regulations can affect the market, but it only does so much.

The real reason the market has blown up since Trump came in is because the tax cuts (expected and realized) gave companies the impetus to buy back insane amounts of stock. It didn't hurt that the economy was doing well, but stock market is not a perfect reflection of the economy. Consider the economy grew by 2.3% in 2017, and the stock market went up by ~20% (S&P 500). It's begging for a correction.

Lastly, we've been in a recovery for almost a decade. Historically speaking (looking at BLS data), the economy and market will have to cool off some point soon (or maybe right now), and then there will likely be a downturn.

[cuttingedge]

Trump blames the lower numbers on the FED.

[sir shovelhands]

Forbid he support raising interest rates so savers stop getting the entire shaft.

Wait, he supports raising interest rates?

https://twitter.com/realDonaldTrump/...31267559755776

https://twitter.com/realDonaldTrump/...58100149309441

https://twitter.com/realDonaldTrump/...87981020729344

[Artos]

Yup...if you are gonna thump your chest & let the world know your policies created the entire market bliss??

He's his own worse enemy most the time

[Humper]

Yup...if you are gonna thump your chest & let the world know your policies created the entire market bliss??

He's his own worse enemy most the time

Word!

[PondPopper]

If anyone cant see or admit that this is a orchestrated effort to take Trump down then your just not being honest OR you hate the man so bad that you refuse to see what is really taking place.. Barry has been taking credit for the great economy since Trump took office even as recent as a few weeks ago when he was speaking at the University of Houston.... All of the sudden he is silent..

Don't worry Barry the feds have your back on this one.. They will make Trump look real bad for you..

[PondPopper]

Yup Obama set the next president up to fail.............

Oh and he had plenty of help and still does... The deep state is alive and well..

[sir shovelhands]

If anyone cant see or admit that this is a orchestrated effort to take Trump down then your just not being honest OR you hate the man so bad that you refuse to see what is really taking place.

So you're saying there's a cabal that was able to cause a huge downturn in a 30 trillion dollar market? And do it in secret? And for the sole purpose that they didn't like the President? And they waited until right after the midterms? You know, the LEAST damaging time for anything negative to happen during a Presidency?

Color me skeptical.

[PondPopper]

So you're saying there's a cabal that was able to cause a huge downturn in a 30 trillion dollar market? And do it in secret? And for the sole purpose that they didn't like the President? And they waited until right after the midterms? You know, the LEAST damaging time for anything negative to happen during a Presidency?

Color me skeptical.

I'm not "saying" anything.. Its actually happening.. How many times did the FED raise rates during Barry's 8 years in office? Coincidence? I don't think so..

[SmTx]

Yea. It's his fault. There's no stability in his leadership at this moment. Where can anyone have faith in the US and our future at this moment.

People can chest thump all they want about the cabinet attrition we've seen but, "people dont quit bad jobs they quit bad bosses."

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[PondPopper]

Yea. It's his fault. There's no stability in his leadership at this moment. Where can anyone have faith in the US and our future at this moment.

People can chest thump all they want about the cabinet attrition we've seen but, "people dont quit bad jobs they quit bad bosses."

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So people don't quit bad jobs?? Hmmm. Ok.

[Junkers88]

Not intending to single you out but you made two points that I wanted to ask about. Hope you don't take offence.

Oh and he had plenty of help and still does... The deep state is alive and well..

I don't do much in the way of politics so I did some looking and have found nothing firm about a deep state. Perhaps you can explain that or even better if you have some links I could read I'd appreciate it.

So people don't quit bad jobs?? Hmmm. Ok.

To this one I can answer personally. I'm currently in a job that infuriates me on a weekly basis. One of the reasons I've not quit is because my supervisor and superintendent back me up. I'd have left if it wasn't for them.

Thank you for your time and consideration.

Richard

[sir shovelhands]

I'm not "saying" anything.. Its actually happening.. How many times did the FED raise rates during Barry's 8 years in office? Coincidence? I don't think so..

True, it's not a coincidence. It's same the fiscal policy the Fed has followed for over a century. But I'll explain if it helps.

When the economy is doing poorly, the Fed reduces interest rates. This makes money more easily accessible in the form of cheaper loans to consumers and corporations. The Fed believes this will allow consumers to buy more crap/invest, and encourage corporations to invest and grow.

When the economy is on fire, the fed increases rates to prevent (it hopes) overspending by consumers and encourage savings, and to prevent companies from over-leveraging themselves. It's how the Fed tries to keep a bubble from forming and reduce inflation.

But you don't have to believe me, just look at historical interest rates and trend them with GDP growth, inflation, unemployment, and see for yourself.


As for the rates during Obama's years:
From 2008 to the early 2010s, the US experienced the worst recession since the great depression. So the Fed, following it's century long policy, dropped rates down to 0.25% from 2009 to 2015. Starting in Dec 2015, they began raising them, reaching 0.75% by the end of 2016.

Since Trump came into office, the economy has been doing quite well, so the rates have gone from 0.75% to 2.5% in two years.

If you think that's a high interest rate, it's actually pretty low; consider that from 1981 to 2001, rates never dropped below 3%, hell Reagan never had rates below 6%.

If you think the rates are going up abnormally fast, you'd be wrong: consider Bush's Presidency, rates spiked from 1.25% to 4.25% in less than 1.5 years (between July 2004 and Dec 2005). If you look at the data, you'll find quite a few instances of much faster increases in rates than we're seeing right now.

I can see how you might come to the conclusion that this is all a terrible conspiracy if you're only looking back at the last 10 years. Look at a bigger slice of time and you'll see the Fed's interest rate policy is relatively predictable.

But don't assume I endorse their policies (or even the Fed's existence), I'm just pointing out the trend.