Markets tanking - Trumps fault?

[RiverRat1]

2.75% is huge compared to 0.25%

And "the worst recession" since the great depression is a load of BS. Maybe 2% of people turned off their cable TV during those "bad" times.

His point is..Name one President who had rates lower than 1.5%? Much less one that had rates that low for 8 freaking years.

But you're right about how they use rates during good and bad times.

[muzzlebrake]

Pretty easy to understand why the Fed lowers interest rates during a democrat presidency. The democrats policies are the worst for stifling business and growth so the Fed lowers the rates to help keep the whole economy from tanking. Once the democrat is gone and regulations eased and executive orders canceled the stifling of business is relieved. Raising interest rates at this point helps keep inflation in check and allow the stock market to correct itself back to it's real value. Not many people are in the red right now and their portfolio is still way above what they actually invested. The market will need to lose another 10% I'm guessing before it levels out again. Don't panic just yet.

[Capt.Brown]

There’s ups and downs it’s natural, and yes the president can rattle the markets with there policy.

[sir shovelhands]

2.75% is huge compared to 0.25%

There's no doubt rates were at their lowest, for the longest during Obama's term. But compared to the average since the inception of the Fed, 2.75% is still really low.

And "the worst recession" since the great depression is a load of BS.

To prove my point, I'll list 8 year periods where recessions start (including the great depression), and you can see why I called it the worst since the depression. FYI I'm using real dollars (inflation adjusted) to calculate growth rates.


-Depression, 1930 - 1937 (data for 1929 is hard to find): average growth rate 1.09%, average unemployment rate 18.26%.

-Post war (not really a recession, but a major contraction nonetheless), 1945 - 1952: average growth rate 1.325%, average unemployment rate 3.8%.

-Recession, 1970 - 1977, average growth rate 2.96%, average unemployment rate 6.475%

-Recession, 1980 - 1987: average growth rate 2.925%, average unemployment rate 7.675%.

-Recession 1990 - 1997: average growth rate 2.875%, average unemployment rate 6.0875%.

-Recession, 2007 - 2014:The average growth rate 1.25%, average unemployment rate 7.525%.


You'll notice no recession since the great depression has had such low average growth over an 8 year span (most had more than twice as much growth) as seen in 2007-2014, and the highest average unemployment rate during another recession was only .1% higher than 2007-2014.

Based upon this, I think the description of "worst recession since the depression" is appropriate.

Now there were several 3 year periods where recessions start that had worse averages than any 3 year period during the 2007-2014 recession, but these were followed by swift and strong recoveries, which is why I decided to use 8 year periods.

2.75% is huge compared to 0.25%
His point is..Name one President who had rates lower than 1.5%? Much less one that had rates that low for 8 freaking years.

Let's not move those goal posts. His point was that there was a conspiracy by the Fed to raise rates at a rapid pace in order to stifle the economy and make Trump look bad, which I disagreed with. I do not disagree that the rates during Obama's tenure were the lowest, and held for an extensive period of time, nor did I ever claim they were otherwise.

[muzzlebrake]

1982 was the worst ever for me. I was an independent HVAC contractor and many of the jobs I had sold got canceled mostly due to the developers and builders running out of $$$ and not being able to get interim money. Left me with no cash flow to pay my people so I tried going it alone for a while. Finally had to go to work for somebody else in early 1983. Them was some hard times for lots of people in the construction bidnez.

[BrianL]

Yes, a large part of this is from his recent executive decessions. Some of which sure look stupid right now.

[muzzlebrake]

Yes, a large part of this is from his recent executive decessions. Some of which sure look stupid right now.

Smart people don't think they are that stupid.

[BrianL]

Smart people don't think they are that stupid.

[psicoo]

Sir Shovelhands, you have likely observed that some people's heads here are so far up trump's butt, they are unable/unwilling to see nor read or research the real facts. Facts don't matter, and it's sad how society has been so dummied down. Out...

[Humper]

Sir Shovelhands, you have likely observed that some people's heads here are so far up trump's butt, they are unable/unwilling to see nor read or research the real facts. Facts don't matter, and it's sad how society has been so dummied down. Out...

Remember.......

[RiverRat1]

Let's not move those goal posts. His point was that there was a conspiracy by the Fed to raise rates at a rapid pace in order to stifle the economy and make Trump look bad, which I disagreed with. I do not disagree that the rates during Obama's tenure were the lowest, and held for an extensive period of time, nor did I ever claim they were otherwise.

I was just saying what I think he was trying to say. The FEDs kept rates super (and can't stress SUPER enough) low for Obamas entire 8 years. Once Trump gets in they raise rates when most think rates should not be moving up.

None of us know if it's a conspiracy or not. But I can see why people would think it is...and why people refuse to think it's possible to be one also.

[BrianL]

Had he wanted liberal and low rates, he should have left Yellen in there.

[BrianL]

And the reason he is screaming at the Fed about rates is he doesn't want people talking about the shutdown, tariffs, and trade wars.

[PondPopper]

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[PondPopper]

But I'm sure this is because of Barry..



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