So if Trump takes credit when the stock market climbs, will he take responsibility for the declines?
The Dow Jones industrial average closed down 1,178 points today and briefly declined more than 1,500 points. The decline erased all 2018 gains. On a percentage basis, the Dow was down 4.60%.
The reason for the stock market decline, which I have been expecting for some time, is complex, including slowed money supply growth and buying exhaustion. However, Trump's tax cut which was not accompanied by spending cuts is not an insignificant part of the problem, which I discuss here: And So It Begins: Trump Puts $30 In Everyone's Paycheck But Destroys Their Stock and Retirement Portfolios in the Process.
Robert Wenzel is Editor & Publisher of EconomicPolicyJournal.com and Target Liberty. He also writes EPJ Daily Alert and is author of The Fed Flunks: My Speech at the New York Federal Reserve Bank. Follow him on twitter:@wenzeleconomics and on LinkedIn. His youtube series is here: Robert Wenzel Talks Economics. The Robert Wenzel podcast is on iphone and stitcher.
What would Volker do?
ReplyDeleteGood and funny question. Credit where credit is due.
DeleteWhat's NYSE margin debt doing now? If money is flowing into the bond market as you suggested, could this trigger deflationary margin calls?
ReplyDeletePerhaps the Intel Committee Memo is the "Black Swan" that popped the stock market bubble that the Fed blew?
ReplyDelete