"The only problem our economy has is the Fed" ... so says trump. Really? How about tariffs imposed willy nilly without fore thought? Or government shut downs over a wall that Mexico won’t pay for? Or a ballooning federal deficit because of tax cuts that aren’t paying for themselves? Or a complete disfunction and utter chaos in the WH? This nonesensical twitterlng about firing the chairman of the Federal Reserve doesn’t help either.
Once again we are reminded that we have a tragically unprepared and dangerously unprincipled ‘fake’ president who is an unabashed leech and an unrepentant liar. What a spectacle at just how fast the so-called “successful businessman” in the oval office is proving terribly unfit for the job, and how spineless and feckless a group of cowards McConnell and the rest of the GOP are in refusing to come to terms with this reality. It’s a shameful national embarrassment now on full display for all the world to see.
32
It is rare that a single word can accurately describe the complex web of reasons for a precipitous decline of the Stock Market in the midst of a relatively strong economy, like we have today, and that word is Trump. As the former Secretary of Defense, William Cohen, has said: Trump has taken a wrecking ball to every pillar of stability and security that has been built up in the West over the past 40 years. In doing so he has destroyed his ability to be believed or trusted by any serious person. Without trust, he is unable to calm anyone and without pillars of stability and security the Market cannot thrive. It's not surprising that Trump is trying to make Powell, the man he appointed, a scapegoat for the mistakes he, himself, has made. Trump does not have the courage or the decency to accept responsibility for his own mistakes. Like an insufferable kindergarten bully his infantile response to every mistake is : "Look what he or she made me do!" Slowly but surely the question most Americans are asking is: "How do we rid ourselves of this incompetent fool?" It is the kind of question that can lead to impeachment and conviction.
26
The Nightmare on Pennsylvania Ave continues. Trump driving the bus with ghouls and monsters on board taking us frightened Americans further and further into his demented world, the Upside Down. We all say to ourselves this is scary and ask what is he doing? And wonder is he doing this on purpose? No one seems to know, all we can do is speculate his motives. For many, his demented ways were all good until his behavior affected the money. NOW even the Republicans are all waking up. Finding themselves too deep into trumpian upside down land to get out. How do we stop him, is my only question. Wrest control of the steering wheel and kick him off the bus?
He is either trying to create a national crisis in order to create a panic, declare martial law and consolidate power further OR he is just completely nuts. Either way folks. We need to end this national nightmare and get him out of office.
7
A trillion dollar tax cut flushed down the drain by a trillion dollar loss in the stock market. None of the companies who gained from the tax cut invested in their employees. The invested most of the money in stock buy backs.
So much for that...
16
Having recovered my lost earnings of my 401K (which went kaput during the Bush Recession) by holding fast during the Obama years, I knew that after Trump was elected and the Trickle Down GOP immediately began to throw Tax payer money at their wealthy Robber Baron patrons like it was the 1920s that it was time to retrench, and then reconfigure my holdings enough to weather the coming mother of all Recessions.
So now, seeing the stock market begin to tank (and our friends in the international community in disarray) while our Fearless Leader and very own Bankruptcy Baron in the White House begin to blame the Fed for the profligacy of his corrupted Administration, my worst nightmare for our economy seems to be beginning to materialize. Sad but wholly predictable.
7
It’s as though an angry warthog is running amok in a Baccarat crystal showroom. Would someone please call animal control?
8
as much as I loathe Trump this market downturn is not all on him (not, of course, that he hasn't contributed)...the market has experienced extreme growth in the past several years...bound to fall back to reality at some point...the Fed moves are correct (a needed adjustment to that reality)...no reason not to see the Dow at 18,000 in 2019...
3
Going as far back as Hoover, it seems that market crashes take place most often under Presidents who are Republicans, ironically the “party of business”—supposedly. In fact, on average, the market has gained far more on average under Presidents who are Democrats. Economic policy has much to do with it. The trickle down effect of Republican tax cuts has repeatedly not occurred. These tax cuts have only further skewed income inequality for the top 1% and ballooned the deficit.
12
While the stock market cheered Trump's election, I moved 85% of my investments to bonds, preferreds and added to my muni bond ladder.
I am watching the collapse of this bloated market with some amusement. With PE ratios out of whack and China slowing, did you expect any other ending than this?
I am anticipating a January rally based on oversold conditions and easing tensions with China. After that, we will test decade lows.
I'm a New Yorker and have too much data to ever trust Trump.
11
"Character is Destiny"(Heraclitus_
Trump's modus operandi is to make everything all about HIMSELF. That is: 1) to take causal credit for anything that turns out well and, most importantly, 2) deal with crises and bad outcomes by concentrating all his energy to assign blame to others.
The markets are reflecting a growing awareness that current leadership lacks the qualities of character that are necessary to respond coolly and rationally to the inevitable challenges that a president is elected to handle.
4
How is the federal reserve making decisions? Certainly not on economic data. This and the economic damage being caused should be the biggest concern for all Americans.
Merry Christmas & Happy New Year
@Don the Fed moves are correct...need to get the rate back to normal at some point...I'm hoping for 5% CD rates!...
3
When the market was going up, up, up, Trump took all the credit for the increases. I asked cynically whether Trump would take responsibility for them when they went down. Now we know what we always suspected. He blames others. He's never wrong...
8
Has anyone explained to Trump he doesn't personally get the tax write-off if he drives America into bankruptcy...
4
The only remaining question about Trump is how much damage will he do. I’m not sure how much more our country can take.
1
Would anyone think it unlikely that trump is causing the markets to roil while his sons are shorting stocks?
The more I think about it, the more plausible it seems. The man has 0 scruples and would just as soon sell out his country while enriching himself.
He must be removed.
7
Wait until 2018 W2s come out and his base learns that they under withheld and they owe taxes. Then the pitch forks will come out.
6
I am sure my wife's BFF, who voted for the Grifter, but does not want to read anything about him and who I want nothing to do with now and in the future even when this nightmare is over will never admit that her investments have suffered. No, I am sure she will boast to my wife in the next conversation that her portfolio increased in value by a proportional amount of the decrease. Absolutely!
4
Consider that there is still a week left before the end of the year and fear is now driving the markets. The Dow has lost all of its gains in 2018 and has substantially shipped away at the gains made in 2017 We are now at a point where the gains obtained under Obama are in jeopardy. The invisible hand of the market? No! The incompetent tiny hands of The Disrupter in Chief
4
Trump in a nutshell: Anything positive, whatever, wherever - he takes credit for. Anything negative that happens because of his actions and interventions - is everyone else's fault.
G
3
One wonder on how long Mnuchin will last now that Trump is unable to fire Powell?
After all, one thing is certain in the Trump setting of mind, someone will have to be fired.
Trump the stable genius, any one remember how we laughed at that kind of serf-assertion before it turned out to be the truth, is showing again how he is the best business man there is.
1
Set aside (for now) the tweets and the personal attacks, the pettiness and the self-interest. These people are, at baseline, incompetent. I have hired hundreds of people for a lot of different positions; but I can't imagine hiring these guys for anything. Which would only be an interesting conversational tidbit at a party except for the fact that they are in charge of our country, our economy. At the end of the day, this really is not about hating Trump. It's about loving our country.
5
Stock markets are fickle. Investors have shaved trillions of dollars in value off market cap without any real threat to the global economy.
And yet, Trumpkin and Munchkin hardly inspire confidence in those tentative buyers. They lack the experience to manage economic expectations or the authority to change their direction.
Right now, the direction is south. My IRA is getting mighty puny under Donald's watch. After 50 years of hard work, my standard of living is under threat by the poke-in-the-eye disrupter-in-chief.
3
A liberal Republican US congressman talking about Fed independence. That is the pot calling the kettle black. If this congressman, along with many others, had been doing their constitutional duty, the Fed might have independence. Until very recently -- the decade preceding Trumps election, the Fed had been central bank, treasury, and legislature. Precisely because, collectively, congressmen have been purposefully-negligent (treasonous?) in sworn to duty.
3
Trump is so obviously just setting up another burning attack on another straw man, Jerome Powell, so that he can blame another person or agency for his own flaming mistakes. He will not take any responsibility for anything negative, even when the negative outcome is a direct consequence of his own words and actions. Trump begins a sentence and then loses all control of what he says next (e.g., talking to children about Santa).
Let all the Constitutional levers of oversight, control and basic human decency descend upon this isolated demagogue. Until then, no peace on Earth.
1
Why is it ok for Wall Street to make the Fed its hand maiden but its not ok for a President to do the same? The Fed has done a 180 degree turn since the time of Mariner Eccles during the Great Crash. It was designed for Main street and the real economy. Ever since Bill Clinton and Robert Rubin buried Glass Steagall, the Fed has only worked for Wall Street and the Financialized economy with their bogus financial instruments of speculation. It is absurd to keep pretending that the Fed is some kind of neutral high priest a la the Supreme Court and Chief Justice Roberts. Wall Street has hijacked the Fed. It has made a mockery of every regulatory body like the SEC, OCC, CFTC etc. by suborning politicians and appointing obedient lackeys to head these organizations. It is high time we thew all this out and started anew. I would suggest to Trump that he start by firing his Treasury Secretary and every Wall Street lackey in his administration and replacing them with some sensible people. There isn't much chance of this but I do welcome Trump's lack of obeisance for our established institutions like the Supreme Court and the Fed. They are now hollow marble tombs with epitaphs written on their walls for the great virtues they once stood for. The Democrat Neoliberals and the 1% in this country reckoned that if they could make the great institutions in their image then everything would be well; looks like that experiment just got done. Q.E.D
Of all the comments made in this article, the one I resent is Jeff Flake's. Here's a man who always made comments that showed moral heft but always voted against his own conscience. History will record him as an enabler of evil.
2
trump talks too much, Republicans sit and watch turmoil on sidelines. USA has no leadership.
Attacking the Fed Chairman is a super-plan to restore confidence in the markets... If anyone looked for the fastest way to destroy America's global standing and wipe out as much wealth and value as possible, a President Trump would be the perfect response. Congratulations, America!
1
If trump blames others enough, will they eventually be at fault?
For the Republican Party: The majority of Americans beg you to remove Trump from office.
1. We do not want his worthless wall.
2. We do approve of dreamers and qualified immigrants.
3. We do want clean air
4. We do want trees grass, squirrels robins etc.
5. We do want bridges roads repaired.
6. We do want GUN CONTROL and the NRA gone.
7. We do want equal education and health insurance for all.
8. Above all we Want Trump GONE from office.
4
The Right Wing Republican base wanted chaos and they got chaos. The first two years there were some adults in the room. Trump has drained the swamp of functioning adults and all we have left are "yes" men for his mercurial instincts. The same mercurial instincts that caused him to lose a half Billion dollars of his fathers money and have to turn to laundering money for the Russian mob to have some modicum of success after his long string of bankruptcies. He now is working on bankrupting the US of A with his insane and incorrect "instincts."
2
Asking Trump to calm markets is like asking an arsonist to douse flames. When you have an unhinged Molotov Cocktail in the White House be prepared to have everything burned to the ground, including your economy. And Mnuchin as Treasury Secretary is hardly reassuring.
1
How come when Elon Musk did this they asked him to step down as chairman? But not Trump?????
The facts surrounding Don the Con's personal hype of his business acumen must be repeatedly displayed in case some of his base missed that news cycle.
Six bankruptcies. No objective basis for any decision he has made in his current post. Thievery. Knee jerk, bombastic statements intended to incite a segment of people he manipulates and preys upon to support him. Cannot get financing from any reputable bank. Backed by third-rate media personas who have no clue about what they are saying, with no factual basis to support positions, whose intention is to keep stirring ridiculous innuendo for their personal gain.
The GOP thought they could lead. They thought their minority position would eventually sway the vast majority of us when we experienced their wisdom. What a joke. No plan, no basis in our collective reality of the critical need to embrace the future. No infrastructure plan, no serious job corp, no remedy for health insurance costs, no support for great education for our children only a tax cut to squeeze the middle class even more for greater military spending while not getting a transparent accounting from the Pentagon. Yes new taxes will have to fix this disaster. The only thing the GOP knows how to do is then blame progressives for the "uncontrolled spending" when that happens. They are now the party of LIE and Deceit. The GOP is responsible for the greatest increases in our national debt since WWII. What a joke...
4
Well here in London we have our own flavour of madness, courtesy of a useless Conservative government. But Trump is perhaps a different order of magnitude of insanity that elicits a mixture of incredulous laughter and perplexed horror.
All that’s solid melts into air.
2
On their best days this is the gang that couldn’t shoot straight. Their best days- coasting on Obama’s tailwind- are spent, along with the nation’s credibility. There is nowhere to go but down and nothing to fear but whatever comes out of the White House. Yikes.
2
We've all had bosses like this.
Everything that goes well, hey, it's all because of them!
Anything that goes wrong, well that's someone else's fault (often yours.)
The absolute opposite of a leader.
2
The Grinch who stole Christmas from investors, pensioners, and government employees and their families “is Twittering away at 1600 Pennsylvania Avenue.
He blames, he lies, “It’s the Fed” he cries.
But, we know better for we have eyes.
2
Step 1: put a lock on his Twitter account.
Step 2: inform him that unless he behaves himself, he's going to lose his play privileges.
Step 3: Take away his toys (weekend jaunts to Florida).
Step 4: Treat him like the petulant child he is.
Merry Christmas. (Oh, if he went to Church today he might be faithfully reminded of the message of love. Let's hope.)
Given the history of Trump's inane impetuous tweets, his unkept bellicose promises, the cluelessness of many of his spokespeople, why do investors even listen anymore? My advice: pay attention to the adults who matter, like Powell, and wait for January 3rd when adults take over the House to see what happens. I would hazard a guess that Congress will have enough votes in both houses to override a veto over a temporary spending bill. The markets will then sigh with relief.
How much more chaos must we endure while GOP leaders sit on their hands, tolerating a thoroughly incompetent president, oblivious or indifferent to the opportunities he is creating (perhaps deliberately) for Russia and China? The man shows us daily that he is mentally unstable and a 'clear and present danger' not only to America but to the world. Time for an intervention!
3
Forget the economy, worry more about the bomb.
For anyone in cahoots with Trump, being in Cabo is probably safer than being in Washington.
Geez, this man. I’m forever dumbfounded at the blame trump spews on anyone and everyone, never owning a thing, unless it’s a good thing. Then, it’s all because of him.
He’s like the weasley guy who pushes children out of the way to get to a life boat off a sinking ship. Just the kind of guy we need to feel safe and secure. NOT.
1
I totally agree with navybrat, Trump's misdirected policies have me losing money hand over fist and yet he is content to blame others, must be nice to be that rich. And, still no talk of having his rich friends pay for the newest version of the "Berlin Wall" he insists be built. I'm a naturalized citizen so now I get to worry about him having ICE come and ice me for whatever adllebrained idea enter his sleep deprived mind. He brags about not minding shutting down the gov't over Christmas, then tweets he's lonely "poor me" well as A.E. Newman said,"what, me worry?"
1
Blame the Fed.
Mr. Perfect President is lily-pure--fault is always elsewhere.
Or was it lilliputian?
He is really just carrying out Putin’s desire to wreak havoc in America. He was the perfect candidate to destroy America. This was the plan- have a fool as president, a person who shoots from the hip and is anti intellectual. He’ll run the economy and relations with our allies in the ground. Merry Christmas!
3
Investors say "Jump!"
And corporate America says, "How high?"
Employers say "Jump!"
And employees say, "How high?"
Bankers say "Jump!"
And the government says, "How high?"
Marketers say "Jump!"
And consumers say, "How high?"
The 1% says "Jump!"
And the Fed says, "How high?"
Tech companies say "Jump!"
And the whole U.S. economy says, "How high?"
What a great way to run an economy!
This guy, who inherited millions, has never accepted responsibility for anything in his life - yet the macho\ tough-guy \ self-reliance crowd continues to support him.
Because "personal responsibility" is not what they care about, really. That's why they voted for a candidate who gave them scapegoats .
2
The President should exist for the nation and people. Period!
A little learning is a dangerous thing. Trump knows as much about how the markets work as a 10year old. The difference is that most ten year olds couldn't do as much damage to the economy as Donald J. Trump with his small intelligence and large ego.
1
Federal Reserve Mixed Signals:
- The Federal Reserve raised short-term interest rates to keep the U.S. economy thriving.
- But the Fed also downgraded its economic outlook for 2019, triggering a steep sell-off in markets.
@Kurt VanderKoi So if only the Fed would only issue glowing reports on the economy we'd never have another recession! So simple but it took your intuitive genius to understand. Kurt VanderKoi for Fed Chariman!
1
For a small investor who lives on social security and a small pension, it's been a difficult year to be in the markets in any manner. It wasn't easy but I've had to return to work. In January I felt like I could ride a positive wave of market confidence; then, trump announced the tariffs and within short time, the tariffs took effect.
Instead of putting all my eggs in one basket, I spread monies across different institutions that include small 401s, small investment accounts, and some other pots that I've attempted to fill over the years.
After the tariffs started having an effect here are three examples from where I sit, and I imagine I am not alone.
One 401 slipped from $76k to $63k,
a small investment account slipped from $56k to $41k, and
another brokerage account from $140k to $100k.
The list goes on and these are monies that I cannot replace, making my return to work horizon, longer than I ever planned.
12
Isn't it nice that Trump now realizes that he cannot fire the Fed Chairman. For high school juniors and seniors their American government teachers have covered this for the last century.
Notice how Trump doesn't point to the stock market to prove how well his policies are working. Policies like the corporate rate that now allows for stock buybacks and plant closings.
Donald J. Trump, the Republican Christmas gift that keeps on giving.
12
What high school seniors and juniors know about Government are well above the understanding of our current President. It is obvious by Trump's tweets he has little understanding of how the system of checks and balances, confirmations, the legal system, the military, and Federal Government operate. He is used running a family business into the ground.
1
What high school seniors and juniors know about Government are well above the understanding of our current President. It is obvious by Trump's tweets he has little understanding of how the system of checks and balances, confirmations, the legal system, the military, and Federal Government operate.
Our chaotic President has finally depleted the wonderful goodwill left behind in the Obama economy. I thought it would happen after one year, but the Trump Effect is finally here. Stability in any economy is the byproduct of strong leadership. Donald Trump's strength has always been fake. This economy is headed for the toilet and it has nothing to do with the FED raising the discount rate. This is all about an unhinged president.
41
Conclusion: Blame Trump, because in fact he’s most of the problem.
While you’re at it, suggest to all your Republican friends you might have who still think he’s not an unmitigated disaster that they need to get real to avoid losing most of their wealth, even if it is not ill-gotten and mostly undeserved.
21
Donald Trump will take credit for anything good that happens and blame anything bad on someone else. His megalomania worsens every day. The reality is that he is a small, small man with no concern for anyone else. The sooner we can rid ourselves of his presidency, the better off we all will be.
23
@Livin the Dream
It seems to work both ways as two weeks ago you refused to give Trump any credit for the economy, it was all Obama's. And now that its turned a little it's all on Trump.
It is best if Congress can take back power from the president and destroy the imperial presidency. That is the next great task.
17
Once Fox „News“ decides the pain in the market is more than they can bear, Trump will be out within 3 news cycles. Bank on it.
16
Trump's contempt for all things Obama led him to dismiss Janet Yellen. Ironically, as it turns out, Yellen is probably less of a monetary hawk than Powell. It would have been better for the markets if Yellen had remained on the job but it is refreshing to see the Fed Chairman stand up to the stock market's bullying tactics and republican fiscal recklessness.
18
The only thing Trump has ever claimed responsibility for is his father's wealth.
11
what even more bizare than Trump himself is the political paralysis of all our elected leaders.
had Trump been a c.e.o. of a major ( or minor ) corporation / company, the members of the boards of those organizations would undoubtedly have gotten rid of him LONG AGO - given the stagerring record of his ignorance, incompetence and utter lack of fit for the job- not to mention his absence of ANY basic, acceptable social skills. or, for that matter, his glaring narcisitic personality disorders with all that it entails.
alas, he fits to be the president. apparently according to our leaders.
not according to the founding fathers. chceck it out. its in the constitution.
8
"Mr. Mnuchin, meanwhile, has said the recent stock swings are the result of high-speed electronic trading and post-crisis financial rules that he says make it harder for banks to play their traditional market-stabilization role."
Well, a nice bit of meaningless verbal vomit from his beach chair in Cabo...."high-speed electronic trading and post-crisis financial rules"...c'mon man, you can do better than that.
Or, the volatility maybe a result of a complete lack of confidence on the part of those trained in looking at current trends and predicting the economy's future, in the ability of the current administration to actually function in a global economy.
Lets remember that any and all statements from a member of the American oligarchy are meant to calm and reassure the mere commoners who's interests they could care less about. "high-speed electronic trading and post-crisis financial rules"- sure...sounds good to me, these guys must really know what they are talkin' about.
The Republicans running the American government and economy right now are doing so with their interests, and their interests alone in mind. You may think they are working for America, but they are doing it to enrich themselves.
15
I have been shorting the market since early October and I have been "coining it." As in $$$. I have faith in the long term strength of the US economy but in the interim I will profit from the fact that our nation is being run by a nutty bully who is blithely shredding the trade and financial system the US and other nations have spent decades constructing.
6
That's so telling -- that the way to make money of late has been to short the market.
Hope you're right about having faith in the long-term strength of the economy. Thanks to those here and among our allies who spent decades building a stable world and an economy that can grow, most of us can say that we're among the luckiest people who have ever lived. Ever.
Most of us have had enough to live decent, productive lives. Most of us have freedom. We, who are alive now, have never experienced war in our country. Stability has allowed us to build, create and grow. Most of us are educated. Most of us have had medical care that has allowed so many to live long lives. Until recently, most of our children could expect to live better, more prosperous lives than their parents.
But what if the financial system the US and other countries spent decades constructing gets shredded beyond repair? We're seeing now how quickly things can fall apart, gathering speed as they disintegrate.
If only I could have faith that those now in charge could get us back on course. But those who get you into trouble are rarely the ones who get you out of it.
I have had the luxury of never really being scared about our country's future. Not anymore.
4
What I don't understand is that with all the chaos Trump creates, 39% of people polled think he's doing a good job. Who are these people????
25
@Roberto
Meth heads and Opiate abusers who willingly take federal government handouts while crying about "the elites" in the blue state.
You know. The people Trump thinks are going to put down the pipe and work the jobs that all those immigrants currently do.
They don't file taxes so the make believe tax reform is meaningless. They don't understand the tax code or the ramification of the SALT deduction loss. They watch a LOT of "reality teevee" shows, and think they are real ( the "island" of half naked women starving really DON'T grab a snack when the camera stops rolling...along with the entire production crew)
Read the NY TIMES article on Kentucky this week. I think in the magazine. McConnell's state.
2
Honestly, how any Republican or Libertarian politician can remain silent or complimentary of Trump after all this is beyond me. Are there any among them who have even a ounce of patriotism left in their capitalist hearts? Heck, at this point, one would think that even ordinary greed would motivate them to speak out.
Problem may be that Pence would be a different, but equally troubling alternative who could, if he replaces an impeached Trump, maneuver that into a full 10 years of hellish end-of-days-facilitating rule.
2
The American people need to rise up in 2019- we are all in peril being lead by someone with significant mental health issues - aka border line personality with mixed narcissistic/psychotic features. Basically a significantly impaired person with hands on nuclear weapons- the world is literally in danger and the pace of the insanity is only just beginning to accelerate. This is NOT hyperbole.
13
Trump has proven himself to be the least competent president in modern times--quite likely ever. I think his intense narcissism will never allow him to admit he is wrong about anything. He will simply continue to try correcting each of his disasters by creating another disaster just as bad or worse.
It therefore behooves us to remove him from his office. It is certainly obvious he is incapable of carrying out the responsibilities of that office. It is doubtful he comprehends what those responsibilities are. He seems to imagine he has dictatorial powers, as opposed to limited powers.
Up until now, I've worried that if Trump were relieved of his office, we'd be saddled with our feckless vice president. However, I now doubt Pence would be anywhere near the loose cannon Trump has turned out to be. I suspect he'd be more attentive to his advisors. In any event, I doubt he'd shut down the government over the wall issue.
It is now up to the Republicans to evoke the 25th amendment, find him incompetent, and, with the cooperation of the Democrats, to remove him from office. Considering our present situation, I think it a dereliction of duty not to do this--however drastic the action may seem.
8
"Undermine the Fed" ?
A better representation would be" "Undermine the Bank(er)s."
After all, so much of the Fed is made up of bankers.....
Too bad there is not a sister institution, with equal power, to represent the working people.
2
@PI Man They are in charge of the banking system. Who would you put in charge? Or perhaps you think we don't need banks...
That would be called Utopia by many. I remind you that Utopia is a fancy way of saying Nowheresville.
1
In typical six-year old fashion, Trump takes all the credit when things are going well, but points fingers to everyone else when his house of cards begins to fall. Loser, sad.
7
By pushing the idea of crazy as well as corrupt a better exit pardon deal can be negotiated.
The anything to get him out of here school may become ascendant. And necessary.
2
It look like Trump is trying to destroy the country.
6
It's Atlantic City all over again.
7
I recommend this president refrain from making a comparison of the Fed chairman to a professional golfer who has no touch. Golf comparisons won't work for you, Mr. Trump. You have a notorious reputation of cheating out on the course.
But if we are to make golf comparisons here, then perhaps you'll understand what I am about to say. It is bad enough that you are swinging erratically all over the course, but you never once scream "Fore!" Nobody knows when they will be the next one hit from one of your erratic swings.
5
Trump tweeted non stop about HIS big beautiful stock market.
Now that it hit skids it's the Feds fault?
8
I miss the presidents who didn't go on attack, become unhinged, nor spend hours a day watching TV and tweeting nonsense during so-called "executive time".
3
As a Trump supporter and voter, my faith in him is stronger than ever!!!
That is the one great thing about this era: we get to see, very clearly, who everyone is.
1
If this doesn't rattle and stir up the GOP about Trump, then nothing will.
They will crash and burn along with Trump in 2020.
6
New Hoover in the White House urging coming of a recession just like 1930.
2
Trump is the epitome of "the beatings will continue until morale improves." Clueless and destructive.
2
Once again he thinks like a criminal and plans out his crime believing he’s this super genius and no one else will figure out what he is doing. Wrong as in all instances before. He is as transparent as the republicans motives and twice as predictable. The self rewarding group will be duly paid back. And the American taxpayers will make sure of that.
1
Trump really has it out for economists and 7-year olds...
3
The title of this article contains the word "Calm', something not in the vocabulary used by President Trump.
Trump's daily rant-Tweeting is all about creating 'mayhem', period.
1
Donald Trump is clearly so unfit to lead the US in anything. It’s time to impeach.
4
The success he brought to his airline, casino and even this charity, he is bringing to us. And the Republicans largely sit on the sidelines and clap.
4
Here we go again: Trump attacking and blaming someone else for his chaotic financial policies. Surprised it's the Feds this time; it's usually the HOD trio: HIllary, Obama and Democrats. Wonder who the next one to blame will be? Certainly not Putin. He's safe.
4
Markets hate uncertainty Don and your are a major uncertainty.
2
I used to be angry about Trump even being allowed to set foot in the Oval Office. Now, I'm kind of enjoying watching him panic and rushing to pull all the levels, push all the available buttons and trying to act like he knows what he's doing. It's rather amusing to watch him make a spectacle of himself and expose himself for the fool he is. It reminds me a little bit of Lucy in the chocolate factory. And it never occurred to me until now that they both have red hair!
The stories of him having Russians and others bail him out of his incompetence are interesting. But, who is going to bail him out when he sinks the US? Why Russia, of course.
I hope McConnell and his cronies love borscht. There's a lot of it in their future.
4
Maybe trump is panicking because someone told him when he resigns/gets impeached, there is no golden parachute of tens of millions of dollars for him to take out the White House door.
1
And where is Mitch McConnell the big Trump enabler now?
4
It has come to this: an administration so deceitful and so mistrusted that we not only doubt everything members say, but also we automatically assume they are ducking and hiding with every pronouncement. How does Congress—and Republicans, in particular—feel about enabling an administration that has no credibility and seemingly is marching us over the cliff?
3
I’m not sure what’s so difficult to understand about stocks having gone up because Trump took office with a sound economy and promised to cut those pesky regulations, and then Congress passed an irresponsible tax chop that firehosed money at very wealthy people, and then Trump started screaming at the world, and now he’s screaming more because what he was told would happen is happening—the inevitable problems arrived around the world, we’ve been destabilizing alliances and markets, and nobody with the brains of a gnat trusts Trump and his “brain,” trust.
Seriously...he’s pulled this stuff since 1974, and there’s a reason reputable banks stopped dealing with him, and anybody’s surprised?
Oh, well. Easier to blame, “the media,” I guess.
6
It is becoming more ridiculous every day. We need a medical intervention to help the president. He’s suffering. He needs help now!
2
It actually seems like Trump may be having some kind of mental breakdown. Why is he still in DC? I would have expected him to leave for Mar-a-lago as soon as the Senate left town. Instead he is isolated and raging on Twitter over the holidays, like an insane person.
1
I’ll bet Trump thinks he should run the Fed himself ?!
Maybe he thinks Jared could run it, so this way Trump could Micromanage him ?!
For Trump it’s easy.
Or maybe he should leave the position vacant ?!
1
Here's hoping that xMas eve is not silent night from the empty White House.
Here's hoping that the Don of the Trump Crime Family will regale the world with his thoughts.
It is wonderful that he displays his delusions,
wonderful that he displays his dishonesty,
wonderful that he displays his clear ignorance,
wonderful that he displays his blatant deep seat mental illness.
His loneliness and his isolation is great practice for his time in solitary in Federal prison.
Keep Calm and Carry On-- Not, Help! Someone! Trump is addicted to drama and all enablers are at his beckoning. This is recipe for disaster-- his personality type in critical leadership position.......
Trump's wandering around the White House alone, sending numerous weird tweets suggests he's suffering a mental breakdown. America is living the end of the film The Caine Mutiny where everyone watches Captain Queeg proves he's mentally ill and unfit for command while under relentless cross-examination by Barney Greenwald (Mueller and the Fourth Estate).
Melania is flying back from Mar-A-Lago in hopes she can help her husband. Obviously no one in the West Wing can manage this childish bully-tyrant. Yes-man "Acting" Chief of Staff (COS) Mulvaney has already failed at what General John Kelly couldn't do after months of trying.
America's 25th Amendment provides procedures for replacing a president (or vice president) in the event of death, removal, resignation, or incapacitation. Incapacitation includes "mentally unfit" which Trump is exhibiting.
Will VP Pence and leadership from the GOP-led Senate discuss Trump's crazy behavior with GOP-led and/or soon-to-lead Democratic-led House leadership? My guess is they'll leave this crazy autocrat in office by choosing to side with needs of their political party over those of We The People and the United States of America?
1
My daily duality: should i cry or should i laugh? We have a Republican House, a Republican Senate and a Republican president. The very same people who, for years, complained of the Fed because interest rates were too low.
What’s next on their twilight zone’s agenda? That coal is actually dirty and is killing miners but it is democrats fault because they informed Republicans of this...since just...wait...1992/93?
1
Yep -- living that laugh/cry duality life, too.
Trumps attack on the independence of the Fed is very dangerous for the nation. I think the best move for the nation would be for Powell and the other Fed governors to publicly reject the president's efforts to direct Fed policy. They should declare that the authority is theirs and the responsibility for their actions is theirs, and that by law they are independent of the president. If Trump tries to fire or demote Powell, the Fed should publicly reject his effort and continue meeting with Powell and recognizing him as Chairman. Congress could and should then pass legislation which rejects the efforts by Trump and cements the independence of the Fed.
I think Congress would actually pass such legislation if Trump attempted to fire or demote Powell despite its deep partisan divide. The issue of Fed independence does not register with the public as emotionally as other issues. Nor does the public identify the issue as a very partisan one or as philosophical an issue. And both Republican and Democrat members of Congress know that if Trump is allowed to direct Fed policy, then every future president of both parties will certainly do so, too. They know that allowing Trump to determine Fed policy is tantamount to destroying the Fed and simply transferring its function to the White House as even more unilateral presidential power.
2
I’m sure Republican voters must be thinking to themselves, if only we had a sign in 2016!
If given the chance, would they undo the Faustian bargain for tax cuts and SCOTUS nominees they made with Trump in 2016? I doubt it.
This drop in share prices probably simply reflects the progressive retreat of Chinese capital from the US markets in the context of open hostility and impending trade war. China has hundreds of billions invested in US stock and bonds. Already a limited selloff will create a slide in market value. Also a nice way of showing the Trump administration what could happen to the stock market and the value of the dollar in case the repatriation of Chinese wealth is accelerated. This capacity to directly menace the assets and pensions of many US citizens shows that the true power is were the money is. Munchin and the banks have all the reasons in the world to be worried and are probably intensely working behind the scenes to convince Trump to tone down the China bashing. Has indeed been relatively silent on this front lately.
2
@Martin But they would also be destroying much of their own wealth. It's a Mexican Standoff.
If there is a military takeover in this country it should be of Twitter. Instead of disrupting the rule of law, let the joint chiefs agree to shut down the president's mouthpiece. An emergency measure to save the republic.
No Twitter, no Trump.
1
If Mnuchin understood elementary management of banking he would have done nothing. And fear of Trump's interference with the Fed is the most likely cause of the historically large market slide now happening. Once a government goes to war with its central bank, it descends to the economic status of a banana republic, investors and money movers withdraw resources from the economy and the tailspin spreads from the financial sector to the real sector, where investment slows, consumer spending slows, people lose their jobs, the currency devalues triggering higher import prices and inflation, causing interest rates to rise and more investment and interest-sensitive consumption curtailed. The country and others drawn into this vortex are now on the precipice of real grief in the real economy, not because of the Fed which has been managing interest rates competently and appropriately, but because of a Head of State and Treasury Secretary who have no clue about competent, appropriate economic management. This is the big fear spooking the money and securities markets and soon the economy as a whole. All those people who voted for this gang of clowns will live to regret it, but history is full of examples where serious grief needs to happen for the lesson to be learned and better arrangements to follow. The real economy is "at the edge" of a precipice, so this may be the last Merry Christmas day for quite a while for quite a few; enjoy while you can. Merry Christmas.
Trump may want to read up on Smoot-Hawley or ponder the market impact of an increasingly dysfunctional executive branch of government. not many market crashes blamed on a 50 bps rate increase.
3
It's the same old song, bulging debt load in a rising interest environment. Traditionally, the Fed was never intended to bother with Mr. Market. They are in charge of price stability and maximum employment. On that front, they have been in my opinion, successful.
The world's most qualified man at taking something he hasn't earned and ruining it is once again doing what he does best. Keep talking, Mr. President, the stock market loves it.
1
I've been wondering since Day 1 what might end Trump's ill-deserved, ill-gotten presidency. While I think the end should have come long ago for any of a variety of reasons, I hope that the end of the line for him will be dwindling support among the donor class. In the past few months, and more so in the past couple of weeks, Trump has cost a lot of very rich people a whole lotta money.
3
Just a side question: what percentage of Americans equate having money with being respectable ?
Some would deny that they do, but really, in the end, they do believe that. It is embedded in their cold hearts.
Trump and Melania certainly are that way. His kids do too.
Lots of Americans do.
The baker in the bakery downstairs from where I live, he is not rich, but he is respectable. He is someone that makes an effort to be polite and kind to others.
2
You have to wonder how different things would be if all citizens gave him a chance. The RESIST RESIST RESIST campaign has done nothing but cause stagnation in our country. Opposing border security just shows that people forget 9/11, Boston Marathon Bombing and other terrorist attacks. More are sure to happen due to the opposition.
It’s obvious that Donald Trump is a seriously troubled person with no regard for the Consitution. Even though it is the holiday season our country is in a serious crises that cannot be ignored.
1
It's clear that Mnuchin orchestrated Treasury's Public Affairs press release touting "ample liquidity" at the behest of the President as "proof" TO BE PRESENTED that there is no reason to raise rates.
Why would the Treasury Secretary advertise a call with the President's Working Group on financial markets?
Because the narcissist (stewing alone in the White House, now trying to get any deal with Democrats) was desperately seeking recognition as a Saviour of Money Mountain.
The market can fall further, and America will still receive our New Year's Tweet that his presidency only lays - GOLDEN - eggs.
Trump needs the stock market to bolster his political numbers because it's becoming glaringly obvious he partnered with Russia decades ago, and they did indeed collude to win the Presidency.
By now it should be obvious to everyone that Trump is incapable of understanding the context of his office. He will never grasp the need for balance or any form of constraint. It is all impulsive tweeting, and will remain so throughout his presidency. The consequences will never be fully considered.
But hasn't the stock market been unreasonably weird these past two years, Trump notwithstanding?
The incessant rise just seemed too irrational to continue.
1
I remember the days that the Republican Party, Trump, the Club for Growth, the supply side Economist...complained about the low interest rates and debasing the dollar even after the 2008 economic collapse. How quickly they forget when they occupy the White House.
1
$70,000
That's what the 2008 financial crisis has cost the average American over a lifetime.
My concern is there will never be, "going back to normal," after a Trump Presidency.
All of Donald Trumps wounds are self - inflicted, including taking a strong economy and meddling in it to the point of chaos.
1
Each President should have his image on the U.S. currency, just as each Treasurer gets to have his signature on each new bill. That's why it's called "fiat money".
It’s time for POTUS to be fired before he does even more damage. Once his base figures he has done nothing to improve their lives they too will turn on him. Who will then read his tweets?
Now, trump wants to fire munchkin, too. So, we get another 'acting' cabinet member that has not been vetted by the Senate.
1
This entire trump thing was a failed experiment. I’m pretty sure his “base” is no better off two years in, but they are too proud to admit it. Sad.
The Federal Reserve has little to do with the plunge or ascend of the market. Trump's policies are to blame in this instance. Trump wants to control the Government - the Justice Department, The Pentagon, The Fed - the entire system of Government. The Electoral College - the archaic (sp?) system that put him in office should be abolished along with him. Wouldn't be a bad idea to reign in the out of control Capitalism - the hidden 3rd Party.
One has to wonder whether Mnuchin approached the banks about their liquidity because he knows that even the suggestion of a bailout would be the end of this administration - the base would be apoplectic.
According to the article:
"Markets have already been on edge in recent weeks because of uncertainty surrounding TRADE NEGOTIATIONS between the United States and China, signs of slowing global growth..."
But wait...didn't Trump brag that trade wars are "easy"?
2
It would be useful for the exogenous catastrophic
event to be instigated by the nitwit running things...but
he would never admit this and would always be
able to use his propaganda machines to insist the
blame lies elsewhere since he is as immaculate as they
could possibly come. Some percentage of the deeply
affected might swallow it, but would the vast majority
of the newly destitute?
But these market gyrations set off by miscalculations
and excessive hubris are wonderful destabilizers
to convince people they might want to start paying
more attention...So anything that contributes to that
is probably useful.
One can find market analysts who had the impression that the market was too overvalued over most of 2018 and that
the past two month decline prices the market
more accurately. So that is nothing to complain about.
Of course
big gut takes it as a personal affront, and adopts his
natural style of looking for a scapegoat to complain about.
This is amusing and a natural motif to engage media
in dramas that don't really count for much more
than hearing him vent. But it's
something that is an inevitable expression of the role
of media as hyper not explainer of events
It is even more amusing that he thinks he
can get away with a narrative that ignores
the different tariff wars he's responsible for starting
and not yet concluding. Only the base would swallow that line.
But could anyone then explain to me why his gallup approval number is up 2 base points?
Remember the good old days, full of certainty and bravado, that all our troubles would vanish just like that if we had a successful businessman in the White House?
1
There goes the GOP's retired 401K voters class. You wonder what it will take for the GOP to oppose Trump.
To paraphase, then, "nobody knew that economics could be so complicated"...
The new normal...twenty irrational tweets a day, at least a third and sometimes over half of the front page of major news services attributed to the latest DJT antics. His behavior and it’s effects routinely overshadowing the real news and issues of the day. A rotating door at the cabinet level. An ever increasing list of colleagues to disown and discredit, or spend time with on “visiting days” at various institutions . One can only wonder what would happen if the News Services just chose to ignore him for a day, a week or in perpetuity. Would he disappear and become irrevlevant, or throw “THE TANTRUM” , that finally erodes the last vestiges of his support..and bring this sad chapter in American government misdirection to an end.
Trump’s major in college? Economics! One would think Trump would have a better grasp of economic issues, he does not understand even the fundamentals. He likes to boast about his schooling, but his views reaffirm he got into the college and remained even with his below average grades with Daddy Trump’s money.
2
Sure feels like Trump is intentionally shorting the market. I wouldn't sell him short....
Trump claims full credit when the stock market is up. He blames others when it is down.
It's clear that Mnuchin orchestrated Treasury's Public Affairs press release of "ample liquidity" at the behest of the President as "proof" TO BE PRESENTED that there is no reason to raise rates.
Why would the Treasury Secretary advertise a call with the President's Working Group on financial markets?
Because the narcissist (stewing alone in the White House, now trying to get any deal with Democrats) was desperately seeking recognition as a Saviour of Money Mountain.
The market can go down more, and America will still receive our New Year's Tweet that his presidency only lays - golden - eggs.
My, what a stable genius!
Do family members of the President support his every move and utterance with unblinking, blind loyalty? Do they all tune in to nothing but Fox? Hard to believe it is so. Isn't Kushner supposed to be smart? Undertandably, if they do offer contrary advice, they keep quiet about it (at some point, and hopefully not too late, they might consider going public for the sake of the republic).
Which raises the question why right-wing pundits who shout so loudly and constantly won't, for at least a moment, put away their intentionally devisive rhetoric for the sake of the country that gives them the right to express such virulence and cruelty. Are their paychecks too precious? Does their power trump their love of country (or at least their affectations of such love)? Do they really, honestly, to the bottom of their hearts believe whatever this administration does is perfection personified? What's with them anyway? They have enormous influence. Why not use it to help the United States of America rather than destroy its very soul?
How could a serial failure who can only get money to finance his projects with foreign dark money EVER be expected to successfully manage the American economy?
Did his base not do ANY HOMEWORK??
Even his failure to get 'the wall' after 3 shutdowns during the time he was President and the GOP dominated the house and senate speaks volumes as to his failure as a deal maker.
2
Most of our previous Presidents were not businessmen. They were politicians. They listened to their advisors and made the best decision they could.
Mr. Trump is a businessman unaccustomed to seek advice or follow it when he receives it. So the current Presidency is a one man show.
From our experience with Mr. Trump, we should beware of electing another President who was a businessman without any political and executive experience. Mr. Trump is a disaster for the country. He thinks he knows everything. His business background is a definite negative.
1
This is what it looks like when you have rank amateurs running the country. Trump clearly has no understanding of nor respect for the role of the presidency.
2
"You can't buy milk in a hardware store."
We must stop expecting Trump to possess integrity, intelligence and sanity. He doesn't. He can't. He won't.
To protect our country's economy and before it's too late, Trump needs to be run out of office on a rail.
3
I am so thoroughly disgusted with this President, frankly I wish the worst for him in the coming year, except that we are beholden to him as President. Let's be frank. He has ruined our standing in the world and now he is ruining the hope of any Middle Class Investor to make a profit in the coming year, much less the year ended.
1
During the last Republican led financial crisis, I lost half my 401K. Instead of panicking (which I did at first) I saw an opportunity to get into the market at bargain basement prices. I have seen continued steady growth through the Obama years. When Trump came in the market was strong, I continued on the same track, cautiously optimistic that the country and economy were strong enough to overlook his incompetence and hopeful that there were enough adults in the room to stop him from his worst inclinations. This last week has shown that we don't have a functioning government. There are no checks and balances. A man that got in on a minority of votes seems to act with impunity, the Senate stands back, the house cheers a ridiculous tax cut, the once stade judiciary has another teenager on board who likes to cry in his beloved beer. And none of these loyal Americans in Washington is willing to stand up for their constituents. I am now ten years older and unable to recover from this current mess without returning to work. Healthcare is out of reach and at 60 looking for a job will be difficult. And meanwhile, the immature Mr. Mnuchin, sits on a beach in Mexico and does all the wrong things, to keep his boss happy, further eroding confidence in the US. During the last election, the pundits on TV kept saying that Trump should be talking up the strong economy, instead, he stoked fear about immigrants at the border. The economy is about perception. Trump is not a leader.
207
@thewriterstuff
I am retiring this year. I worked hard to build my retirement account. Now I see it quickly slipping away. I have no more time to make up for it. I thought I would have enough funds for a decent retirement. This is quite frightening. The problem is that we have no choice and have to put our money in the stock market. I would be fine if I had a pension, but of course there are now few people with pensions. People are losing all they worked for because of one man-child, Trump. I worry about people who are worse off and will have nothing.
9
@thewriterstuff It is 'amazing' that Mnuchin has chosen Mexico for his vacation spot. I'm sure he will be treated well. Some of our legislators might do better voting despite their constituents but that would take some leadership?
2
@thewriterstuff
Substitute the word "ego" for "wall" and you'll understand why Trump was, and remains, so eager to shut down our government to try to force the building of his wall.
7
The Market is telling Trump to cut it out and the man simply is clueless. His attack on the Fed undermines market psychology more than the actual quarter point rate hike
If Mnuchin's shouting there is "no fire" in a crowded theater is to calm the market, it is hard to understand he is a billionaire - oh, wait, he made his billions during the Great Recession. The guy is up to old trick again
34
Mnuchin reminds us of the E-trade commercial a dumb kid partying on a mega yacht. He outdid that by allegedly holding a conference call with the 6 biggest bank in the U.S. - likely to be the top 10 of the world - in an ultra exclusive resort in Mexico.
Forget about Dr Larry Summers or Jack Lew, you would wish Hank Paulson was still at the helm
16
While raising interest rates, the Fed should buy municipal bonds in areas of the country with higher unemployment. Preferably bonds that fund education or infrastructure.
6
@Daniel
There are no “areas of higher unemployment” now. President Trump put America back to work, and however anyone wants to be an employment denier, it doesn’t wash.
It is typically "head I win, tail you lose" Trump-ion approach that drives him crazy when the encouraging job data is released and Trump takes credit for better economic performance, but when things go wrong as now when the stock market is crashing he blames the Fed for the trouble.,forgetting that it is his ill conceived trade wars that are at the root of the economic troubles, whether at home or at the level of global economy.
46
I think the plunging stock market reflects a dawning awareness among Americans that we are on board a runaway train speeding down a long, steep grade. The man at the controls is demented. Recognizing this dire mess, we brace for the end.
94
But he's dragging everyone else along with him. Someone needs to push him out the engine room and take the keys away, quick! (I'm not saying we haven't got our own problems, it's just that we aren't as influential any more).
2
Trump is delusional.
He thinks that government shutdowns save money, and that the savings can be applied to his wall.
We keep thinking he can't be this crazy, but he is; he can't be this selfish, but he is.
The ultimate antipatriot: a cowardly bully bent on making America as small, dishonest, and mean as he is.
The truth matters. Actions have consequences. Power corrupts and absolute power corrupts absolutely.
172
I put this somewhere else, but the words are burning themselves into my brain. This is the essence of what is wrong with us:
"there is a reason, that I suppose has somehow made itself too obvious to mention. The reason is that some people are addicted to money and power, many of them pathologically so, and we let them do what they like. In our name, and with our taxes, we let them kill who they like in the service of their bored, baroque perversity, because we don’t care enough to stop them. We cannot seem to rouse ourselves, even as they move to turn the world into a consuming flame. We are running out of time to save the children of Yemen, and ourselves – and yet we could still, in theory, be redeemed."
68
sorry, forgot to include the link. There is much that is valuable and searing in this longer article, mostly so true as not to be funny despite the great use of language:
https://www.theguardian.com/politics/2018/dec/22/frankie-boyle-review-2018-forget-brexit
19
@Susan Anderson It is the silence of the lambs, perhaps, that we throw up our hands and feel nothing can be done.
2
Truthfully, what surprises me is that it has taken this long. Precisely because of the geopolitical turmoil I perceived, for some time now I have been lightening my holdings in stocks in favor of bonds and cash. As a result, I underperformed the market in 2017 and through September of 2018. But this stunning December drop has me way ahead of the averages for 2018 and close to recouping my underperformance of 2017. It’s as if everyone who was in denial suddenly woke up at once. Let’s hope some sanity returns soon.
44
@ETF Monkey I did the same in early October tho I am not usually a conservative investor. My move to cash despite some capital gains was a bet on Trump's last two years being cumulatively destructive. By that I mean the damaging moves would start to impact in a cascade of damage to the economy, to jobs, and to world order as chaos grew. Trump, the chaos and collapse president. Be the first to leave.
2
"The Market' that nebulous amalgamation of investors, the rich and corporate leaders are now coming to the realization that instead of a stalwart captain manning the helm of the country, we have a "loose cannon." That's not going to do too much to sooth wall street. Hang on everybody. We are in for a rough ride.
48
Does anyone have confidence that this administration has any plan or any ability to reassure the market and the public?
33
And will this president ever seriously realize that his tweets have very real consequences for very real people, that livelihoods and retirement accounts are adversely affected by the words he tosses about so recklessly and randomly?
1
@sasha99a
I'm not even convinced they have the desire.
1
First, he rattles allies, breaks up international associations, starts trade wars, then withdraws troops to leave adversaries to run amok, then starts a government shutdown, then starts rattling the markets and further inflaming them with reckless chatter, believes the Russians over American security agencies etc.
You really have to wonder what is going on, who Trump is serving and why he’s doing things that seem to ovbvioualy be weakening the United States. Is he serving the Russians?
119
Remember Trump's promise to hire only the " best" people? He appointed him and now, like so many others, the head of the Federal Reserve is another foil - notwithstanding his own often near-psychotic decisions and actions which has our economy roiling.
28
Right now all I want is for Twitter to crash... Just 24 hours of peace would really help restore my equilibrium!
74
Read the recent NYT article and comments about Trump's (ab)use of Twitter. Twitter (and it's investors -- any Russian or Chinese nationals among them?) is a private company with its own terms of service, which the leadership of Twitter has decided to suspend for Don the Con. Really, all they have to do is apply their own policies equitably, and you would get your wish without inconveniencing other Twitter users.
2
Prioblem is that Trump is constantly telling lies so if he says the economy is doing great people start to worry is not true.
35
Trump is too high maintenance to be a President. His policies are too expensive to implement, as the wall, tariffs that hurt our businesses, a love of coal and all petroleum-based products, as well as the high cost of providing security for him at his properties. Then there is his love of dictators. Look at any country that has a dictator - they're all a mess; high proverty rates, low standards of living. Because of GOP policies going back many years, we were well on our way, but Trump put it all into high gear.
Yes, let him go. Let Pence go also. The guy hasn't a clue what's really happening and just repeats what Trump says. If you can't be your own person, you can't govern effectively. There are too many challenges in the world for a "yes man" President. We need someone who will stand up and fight for democratic ideals. After all, people have died for those ideals. Someone who just sits by quietly and lets chaos happen thinking they will inherit the mess is not good for the country. It's not a fair win and it's gutless.
85
Always able to make a bad situation worse, Trump is now setting fire to the great economy he bragged so loudly about. Mark my words, his next epic blunder will be to drag our country into an unnecessary war, most probably on the Korean Peninsula, unless the feckless members of his own party start to exert some control over him...now.
32
We’ve sat idly by and allowed North Korea to exist for much too long. If we do end up at war, it’s only because we didn’t finish what we should have in 1953. And by the way, how much have we spent since then staring through binoculars at the DMZ?
1
I am 62. Never before in my life have I felt more fearful and threatened by my own government. The immorality, lack of leadership and the acquiescence to a mentally unstable president by the executive and legislative branches of government is just plain scary. We should be marching in protest.
124
Look to the French for inspiration!
1
I’m terrified of the prospect of a mass tboomers sell off in housing and stocks that could result from this insanely chaotic administrations fear factory.
The percentage off national assets held and the setting sun clocks compounded by memories of 2008 is already a potent sell mixture for boomers. The more spouting off absurdities cloaked as economic policy, the closer we get to the mass sell off and crashing home prices.
Another back to back generation will get utterly shafted by greed and incompetence in regulation. College degrees were free for my father, 20k for me; 50k for my wife; my children probably 80k - and what economy will they inherit?
I’m all in for article 25.; this anti-leader has elevated the memory of every other president to near reverence. Save Nixon.
Give Pence a try, couldn’t possibly get worse under his leadership.
16
Nixon May have been many things, including a crook, but I never doubted that he was a patriot. I cannot say the same regarding Trump.
@Martyn A
I agree with everything you said with the exception of giving Pence a try. He has shown zero leadership on anything and if he was President, his social policies would make Trump's look like an FDR New Dealer.
Save Nixon? A number of people found them selves, the night of the 2016 election when most reruns were in, remarking to one another, "Did you ever dream you'd find yourself, one day, thinking 'Nixon was better than this!"
It’s one thing to ponder, based on irrational and hysterical hatred and in generally falsely opinionated and ill-informed ways about why this administration does anything that he’s in any way antithetical to America’s benefit, but it’s another thing entirely to perceive that just because you hate the guy you can demand his removal from office.
There is such an extraordinarily dismal and fundamentally erratic line of thinking wallowing around the country that those who oppose our President have special privileges that entitle them to some higher moral place in America. They are misled.
4
He doesn't need to be removed from office because I hate him, he needs to be removed from office because he uses the position daily to enrich himself and his family and has skirted so many federal and state laws I've lost count. Foreign dignitaries regularly stay at his properties hoping to curry favor. His charity was just condemned for "persistently illegal conduct." He violated campaign finance laws. And on and on. I can let a thing or two go - no one's perfect and a lot of times it's just someone didn't fill out a form correctly. But come on! The guy is more crooked than Lombard Street.
2
Trump thinks the only problem with the economy is the Fed. He is totally blind to the wealth/income inequality in the USA which is now greater than it was in the "roaring Twenties." They didn't end too well. The great stock market crash which launched the Great Depression occurred in 1929. The depression lasted more than ten years until the war machine of WWII bailed us out of the depression. Maybe that is Trump's strategy; destroy relationships with so many countries that a new world war is inevitable. Again Trump is overlooking today's modern nuclear weaponry. But he overlooks everything but the first thought that pops into his mind each morning. And why not? He knows more than everybody about everything. And there are still tens of millions of US citizens who support him.
27
Untrue. Just because Trump has called out the Fed doesnt mean he thinks the Fed is the only problem. Do you always see complicated things in life so one-dimensionally?
The “stable genius” strikes yet again.
24
Well, if you own stocks now, you have only yourself to blame.
10
If you dump your stocks now, you have only yourself to blame. Market lows are part of the necessary long game of investing, consistent buying when prices are down pays off in the long term.
For those who don’t have the time to ride out a market low, they should’ve already gotten most of their portfolio out of equities, it’s too volatile of an instrument for those approaching retirement.
1
@Djt from Norcal
I would support a Nobel prize for Trump if he did the following:
1. Resign from office the day Pelosi takes over the House.
2. Takes Pence and EVERYONE in his cabinet and administration to with him.
3. Immediately retracts and/or removes EVERY action he took as "president."
4. Immediately stops using taxpayer money for his golf trips, personal use, and other unethical purposes.
5. Agrees to make transparent all business and personal deals and his lifetime of taxes, and fully cooperates with Mueller.
6. Serves the rest of his life in prison and makes restitution to Americans via all of his ill-gotten family holdings and wealth.
40
“Plunge Protection Team”, “Financial Stability Oversight Council”.
“Sarah Bloom Raskin, a former deputy secretary of the Treasury under President Barack Obama and a former Fed governor, said Mr. Mnuchin would be better served keeping conversations about financial stability private.”
I understand that our financial system is based of confidence. And I’m feeling all that confident lately.
7
Mnunchin is one of the least charismatic U.S. political leaders (along with McConnell - they look related now that I think of it...). Ironically he decided to head South of the Border to celebrate Feliz Navidad with his familia - another irony to our GerMexican familie.
The market complained about certainty under Obama for 8 years. Now we have one of the the most uncertain administrations in history and the markets have been booming for 2 years...What a joke! Reap what you sow.
Merry Christmas...
16
There is no Santa Claus. Trump is still in office and destroying everything he touches.
22
The only problem our economy has is the Pres.
26
And this is suppose to be a stable mind, there is nothing stable about Trump.
15
Trump fully in character scapegoating and threatening to fire Fed Chairman Powell.
Mulvaney and Mnuchin will try to find cover wherever they can as the President wantonly wields his wacky wrecking ball on a rightly jittery US economy.
The critical question is what is really going on economically underneath the distortion so gleefully created by our sans genius deal maker President.
Certainly none of the obvious suspects in Trump economic team are going to own up to anything resembling the truth.
11
Facts.
Trump inherited a strong Obama economy. It took 2 years to reverse the course of the Obama economy with his tariffs, threats, Government shutdowns and crazy talk - this is the Trump economy. Unless someone stops him, Trump will bankrupt our country as he bankrupted his casinos and businesses.
63
Don’t forget that tax cut, and who will pay for it.....
2
The fed reserve chairman getting what he deserves. There is absolutely no reason for raising interest rates. No inflation. It is better to bring down after inflation rather than trying to pre-emtive strike, because we do not have the complex economic behavior of the people. In addition, the measures used are not perfect either. So, act after the fact.
2
Interest rates is not the whole picture. Stocks are jittery with low oil prices, our isolated attitude toward the world, tax breaks and so on.
21
We can always lower taxes too. Oh, wait....
11
So notes yet another trumpian genius economist
Join the team in 1600 !
"Peter Navarro, Mr. Trump trade adviser, has been openly critical of the Fed’s decision to raise interest rates and blamed the central bank for the market volatility. "
Navarro, imported to the White House from Fox, is feeding this line to Trump to deflect blame for his tariffs-- works with uninformed Trump but not with people who are selling stocks due to serious concerns re:
1) the effects on the economy of Trump's trade war and
2) the Republican-tax-cut-for-the-wealthy debt, anticipated to hike interest rates far more than the Fed's measured steps
41
The Fed has the power to prevent a Presidential re-election. Paul Volcker was appointed Fed Chair in 1979, and began raising interest rates to new all time levels. The Prime Rate went up to over 20%, and first mortgage 30 year rates went up to the mid-teens.
The economy soured very quickly in 1980. Voters blamed Carter, not the Fed itself. Reagan won the 1980 election, and himself endured the economic recession well into his first term.
I have always believed that Fed interest rate policy should be to only raise rates in instances of actual excessive inflation. Its crazy to raise rates so that the Fed can subsequently lower rates if there is a recession, if raising rates now causes the recession. That is like saying I should pound my head into the wall, so that if my head starts to hurt, I can stop doing it.
Trump has good cause to be upset with Fed policy. Unfortunately, his tactics create even more market uncertainty, and are counterproductive to his goals.
6
And I remember the bumper stickers that said « inflation is running higher than Carter’s IQ ».
It was painful, but the Fed lowered inflation... during Jimmy Carter’s presidency.
What would have been better ?
2
@David Martin
The economy was highly dependent on foreign oil, the price of which was raised by OPEC. As these spiraling oil prices riddled the economy with higher prices of everything, we needed to get off of oil, onto other fuels, and to improve energy efficiency.
We needed capital investment to change our mix of fuels, and to improve energy efficiency. 20% interest rates were counter productive to the need to make those big energy investments.
4
@RM The causes of our period of « stagflation », a word invented at the time to describe the situation (a stagnant economy with high inflation) were many, but it wasn’t just oil and OPEC. The other issue was that the government had been printing money to pay for the Vietnam War and Johnson’s « Great Society » programs. Nixon had taken the Dollar off the « Gold Standard » because the government’s reserves of gold would have been depleted if they continued selling gold at a fixed rate.
Inflation was an issue in the 70s, no doubt.
I stand by my assertion that Paul Volcker’s actions, although painful at the time, planted the seeds of prosperity that we enjoyed during the later years of Reagan’s presidency, Bush (the father), and Clinton. Maybe to some extent, even to this day.
If Trump were to have his way, the Fed would continue « easy money » for all the years that he will be there. And it would be a disaster. The economy is roaring. And now is the time to « step off » the gas.
1
Someone remind Mr. Trump that the market was all his doing when it was up. If it was his when it was up, it is his when it is down. Who was it nominated Powell in the first place?
57
Sometimes I feel like people can't handle the truth! Everything our president is saying is not off the wall.
3
Maybe. But no one believes him because 90% of what he says IS off the wall.
2
@Louis Williams, 6000 lies and Trump has branded himself as untrustworthy.
Interspersed in the the unrelenting rolling waves of lies, as you say, there may be some truths(?) But the temper tantrum eruptions from the man-boy who has cried wolf, chewed and clawed against all the pillars of Our democracy, has wrought an instability in this nation, not witnessed or experienced since America's inception. Enough is enough and to much stinks in this administration.
Moreover who in their right mind wants to listen to or heed or follow someone who talks, rants and raves, then flips 180°? Or worse still, beds down with the enemy? It's schizo! Great leadership will not magically rise from the seeds of graft, greed, and the abuse power; and that from the highest office on earth! Trump in his entire life, I bet, hasn't had a 'come to Jesus moment'- it would require an honest transparent humility and owning of the carnage he created.
But this mans diet are fear, shame and blame.
3
We're all trying to read tea leaves to decipher what has truly become voodoo economics.
Trump is like the mark in a shell game, certain that this time he has it figured out.
Could this guy get a job as the manager of a convenience store?
56
Interest rates are still absurdly low. Only what, a point higher than the historic lows? It's ridiculous for the whiner in chief to cry about rates lower than he's seen in his lifetime.
49
Businesses need low interest rates and low wages to be able to compete in the global economy. The Fed wouldn’t have to raise rates in anticipation of wage-driven inflation if we’d get rid of wage and labor laws. These aren’t the 1930’s and few Americans work in coal mines or slaughter houses anymore. Let’s bring regulation into the modern workplace and the gig economy.
What should be factored into this so called good economy slide is Wall Street probably knows this man and what he is capable of better than most.
17
The economy in general, and the financial markets in particular look brittle. This is a scary place to be because what I believe to be the most potent - and hence the dangerous - aspect of the 2008 crash is the major banks and traders a lack of transparency with respect to the contingent liabilities they hold. Most are off balance sheet. At best, they show up in obscure footnotes to public disclosures.
The 2008 financial crisis was enormously contagious because nobody new who was insuring whom against losses. Everybody knew as markets fell that some players were going to be badly exposed. But nobody had a clear picture of which banks were most exposed to the worst risks. Contingent liabilities, mainly synthetic swaps, options, etc, dwarfed the liabilities shown in balance sheets.
Banks and their counter-parties are no more transparent now than they were then. In this situation, the sort of sudden fall in the price of assets ignites fear in every market participant.
They don't know who is insuring against which risks and how much of their capital will be consumed if they are called to pay on the insurance they provided.
Rumors take over and liquidity dries up, which creates fresh losses that are, to some extent, insured by other financial firms.
6
Market correction is a natural occurrence in free markets. They identify dead wood and leave new growth in their place. Companies like GM need to be allowed to collapse without union bailouts.
This isn't the first time that Trump has tried to foist responsibility for his own failures and his own incompetence and his own stupidity on to somebody else. Some people out there might believe him, or at least they say they do -- Carlson, Coulter, Hannity, Limbaugh -- and the rest of the cast of zanies, But among "we the people," the truth will come out, as it always does, and this wretched man and his wretched minions will be consigned to the oblivion they most richly deserve.
28
Someone needs to tell Trump that:
"It's not the Fed, stupid, it's you."
45
Who has being going short on the markets and are they connected to Trump?
30
Okay. If this guy isn't an agent out to destroy America, what is he? This is too much. In the new year, give Mueller full blast to get to the bottom of this.
67
Is Trump truly insane? The stock market went down 600 points today. He threatens the FED, and blames the decline, falsely, on their actions. This is supposed to calm the markets? Here is Mnuchin who is reaping the whirlwind of his sycophantic support of this Mad King Donald. Trump is doing anything and everything to avoid blame for the market decline, which he stupidly made a hallmark of his "success" in office. Any person with half a brain knows that markets operate on their own cycles, but one thing is clear: Markets Hate Instability and Uncertainty. Any hint of instability will throw the markets into chaos, and Trump is the embodiment of instability. We are adrift without a rudder, and we have Captain Queeg screaming about strawberries while we go adrift on the rocks.
67
Now I am VERY glad that I didn't invest the $75k in the market which I had last year at this time. Somehow thought that Trump's glitter would turn out to be the Fool's gold.
15
In a country so rich in talent, we have deceived to be lead by this utter moron.
A few facts, to keep in mind:
The fed set rates at 2.5%. Inflation alone is just over 2%. If you invest in government securities you’re expected “real” return is less than 0.5%. That’s awfully low by historical standards. If anybody thinks the economy can’t sustain rates that low, they must believe there is something fundamental drastically wrong with the economy.
The fed rate increase this month was almost perfectly foreseen by the bond markets. Fed funds futures prices showed this very clearly. In that sense, the decision was barely even news. So it’s impossible to attribute almost any of the stock market fall to the rate rise.
On that note, if anything the bond market lately has changed its forecast to anticipate a lower path of interest rates over the next 6 months. So this stock market fall is occurring despite markets revising downwards their assessment of interest rates.
Also, global stocks markets have also been tumbling. That’s not due to the US rate rise. The world economy is struggling. It certainly doesn’t help that a particular moron has decided to wreak havoc across the global economy by ripping up trade alliances, starting trade wars, and defecting from many of the institutions that hold the world together. Those bonds of trust and mutual concern are there for a reason. When you shred them, it has serious consequences.
But hey, a moron’s gotta do what a moron’s gotta do.
40
Republics wreck the economy.
Democrats fox the economy.
Republics wreck our reputation.
Democrats fix our reputation.
Republics elect Individual-1.
Democrats are unable to fix it this time.
17
Please. Go. On. Vacation. Maybe a really long one?
19
Article 25; now. We cannot allow this sick man to damage our safety and security any more than he already has.
37
So you suppose Vladimir and Erdogan are coaching him on how to undermine our economy and financial stability around the world also?
I hope Chuck Schumer is calling Mitch McConnell to discuss a fail safe solution to Trump's out of control delierious behavior.
He's gone mad in all the senses of the world and believes his problems are caused by anyone except him. Meneucin should resign also given the shape of the Treasury and so should the Bidget Director.
Once Republicans are in power, it doesn't take long to send the whole economy into a tailspin.
29
The Fed should state that they are not going to raise rates in 2019 , for the market is hanging on in a weak manner. It may end up falling 40% in total just for the Fed did not understand that the economy was slowing. a loss of 40% brings about trillions in losses fro the top. There may be a need in the future to get rid of the Fed in the future. They have caused so much economic destruction over the last two to twenty years. Greenspan really did not understand what was occurring as real estate prices kept going up in 2005 , and 2006. he was afraid to slow it down. In 2008 the market crashed , CDO's destroyed , mortgages, and falsified loan approvals destroyed the US economy. Bernanke made trillions for the wealthy with a massive absorption of assets on the Fed balance sheet. Interest rates were kept low, and all of a sudden even though Trump changed the tax system, rates are now rising to fast even though there is no real inflation. Oil is nearing $ 40 a barrel, why not just state that rates will be frozen for a year. If they continue to raise rates, another 20% will fall off the stock market, and unemployment will soar. they will have succeeded in destroying the economy to later lower rates again. Imbeciles.
Mister Petrillo, the Fed is the only thing standing between a stable Dollar and hyper-inflation.
18
@David Martin
We have deflation currently. Lol, huoer inflation is far from occurring with German stock market down 21%, China down 30%, oil collapsing, .. lol we maybe going into deflation once again with real estate prices deflating again.
That isn’t what deflation is, Ralph. Really, if you’re gonna try claiming to be smarter than, say, Alan Greenspan...well, learn the basics. Paragraph and sentence structure also wouldn’t hurt.
Sorry, but I really get tired of Trumpishness. Among other things, it’s dangerous.
He thinks the Fed is spooking the markets?
Let’s see:
The White House cabinet is deserting in droves,
There’s a tariff war with China which is impacting American businesses and workers,
Brexit is just 90 days away and a mess,
Argentina and Venezuela have out of control inflation and a host of critical issues,
The government just shut down,
Trump completely blindsided our key allies this week,
US debt hit record levels this year,
Corporate debt has reached record levels in the last ten years,
A number of American cities have massive unworkable pension obligations,
Wages are barely rising,
and the corporate tax cut that was implemented did absolutely squat for the working person.
America should be spooked - there’s an out of control megalomaniac in power and he’s taking our country down the tubes for the sake of pleasing a few rich donors.
58
Twitter, when are you going to block this madman's account? That would be a nice smart start!
30
@Joe
Your president is a twit. Perhaps that is why it is called Twitter.
23
Somebody get me a Trump University Economist, STAT!!
19
Trying to exert control over relatively free markets and other branches of the government (criticizing judges daily, advocating the riddance of the filibuster in the senate). Politicizing culture (nfl, sports) and repeatedly saying “only I can fix it”. Expecting pure devotion from all those around him. Criticizing the free press while simultaneously hypocritically praising extremely biased media that supports him. What do all these statements have in common? Dictator tendencies. Thank God and the wise men and women before us who created our wonderful checks and balances. 2 more years.
17
How long is the Republican Party going to stand by this rolling national catastrophe, for which they alone are responsible? Shame, disgrace, and giant lumps of coal to them!
36
Christians elected him, prayed with hands laud on him and consider him to be like King David and King Cyrus. So, Christians are of God and thus must be right (?).
6
Meanwhile, Jarad and Co. are losing their shirts on 666 and all the rest... LOL
8
Really? I was under the impression that Jared et al live off of debt. Keeps their taxes even lower, too.
Look, it isn't complicated, the chickens simply are coming home to roost. You elect a clown, the clown draws clownish advisers who give way to even more clownish advisers. The president's party tolerates the clown out of fear -- the only emotion they own -- and guess what? Chaos happens. Hello.
34
Can no one shut up this fraudulent blowhard? The GOP is powerless. I despair for our country — and my retirement account.
33
So now Trump’s messing with our livelihoods. He needs to be removed.
In 2008 when the market tanked, I had the utmost confidence that Obama’s team would eventually turn things around with their smarts, experience, and commitment to the American people. I stayed in the market and of course never regretted it.
This time around, I’m horrified. If Trump fires Mr. Powell, all bets are off.
Ready to join me in the streets, fellow citizens?
42
Yes.
24
...In his strength lies his weakness. In his weakness lies his strength; TWEETS! This individual is suffering from the after effect of positive reinforcement from his base, as they continue to push the like button no matter how insane the tweets are.
It's like the case of a man who wooed his girlfriend by dry humor; she laughed at every one of those senseless jokes, just to encourage him for effort san substance. However, when she became his wife she grew tired of his insane jokes, and began to see him as a clown rather than a talented comedian. Unfortunately, he didn't get the memo, that the bride is no longer amused or entertained and continue telling those sick jokes. Ultimately, she walked away from the marriage for the same reason she entered into it.
The same scenario is what's playing out between the president and his base. Current events have made quite a few of his admirers to stop laughing at his sick jokes (tweets) but he still thought the beautiful bride (base) is still entertained and intact.
Mr President tear down this twitter-wall, that's what the doctor ordered this Xmas season. You're inadvertently waging war on Xmas and sucking out the joy of the season by each mean tweet. Otherwise the bride will walk away unannounced never to return.
4
When you find yourself in a hole quit digging.
10
A true leader would lead and not doing so by having a fit via Twitter.
12
We all know who the problem is, and it's not the Federal Reserve. It's you, and the derelict GOP Congress that hasn't done its duty and removed you from office.
15
The market is reacting to two things: first, the unbelievably risky tax law passed by Trump and the GOP and basically making the US government live on its credit card, and second, the 'monkeys in the wheelhouse' administration we now have. Trump, as always, blames someone else and whines for a bailout, from Daddy, from the banks, from Putin and the oligarchs, and now from the Fed.
16
"The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!”
So the guy who's head of the world's largest economy is down to comparing the swings in that economy to a golf game, but takes no responsibility for his warped actions on taxes, trade Wars, etc. This is beyond the Twilight Zone.
14
I have a sickening feeling about this. Many, many people would be hurt by a market crash, but Trump is not able to control the economy.
6
Correction: The “only problem our economy has" ... is ... an administration which does not understand what it means to bring balance to the equation of governance. CORRECTION: There is no governance in this administration ... it's simply a group of people who know how to skim. Folks, we know we have a problem here ...
11
The House and Senate leadership need to come together, to discuss immediate impeachment for the high crime of gross incompetence. Another six months of this, and we'll be unable to function.
16
I wonder if Trump messing with the markets is what will finally take him down. Money, much more than politics, ethics, or morality, is what drives this country. Hard to imagine that the 1% will allow this sort of nonsense - not when it threatens their world.
24
Why would anyone ask big banks for their opinions? Big banks are the same ones that put us in a financial crises. Many big banks fraud billions and our courts only award millions is restitution. It is a big payday for banks if they fraud folks. The system is broken.
9
Although I have exactly no respect nor admiration for any member of the Trump administration I certainly don't want them to fail. As a liberal I have been gleeful at each misstep, mistake, and misadventure of Trump and his ilk, but the scarier the country gets the more I root for their success.
Why? Why, despite the visceral horror I feel at the sound of his voice? Because if he fails, so do we all.
180
@navybrat
" Because if he fails, so do we all. "
You're right, but only in the short term. It's like taking a series of shots or one shot with a big needle and getting it over with. I prefer the one shot app.
22
@navybrat
Waiting for this compromised mentally ill incompetent to suddenly become a capable president is an exercise in denial. The solution is plain: he needs to be removed from office, and it should have been accomplished long since.
115
@MisterE please don't misunderstand me. I call for the impeachment and removal from office of DJT, but barring that (as the Republican led Senate will surely block) I hope for his success. I don't believe he will ever be successful, just as he failed in business, but I don't want the bankruptcy and shuttering of his businesses to be repeated to all of the USA.
24
I hope Trump understands that if he fires Powell we will have to impeach him to restore faith in the independence of the FED. And independence of the FED is more important than he will ever be.
18
Of course Americans are panicking. The executive branch of our government is headed by the Trump family business team. And that inspires very little confidence.
28
This stock market is nothing but a casino. Rising interest rates good news for retired savers.
3
Come Wednesday, when the stock market drops another 1,000 points, the impact of Steve "Nebbish" Mnuchin's phone call will be partially realized. The bottom is still far way.
That's not to say that the slide into bear territory could have been prevented. I do not believe it could have, even had Mr. Trump behaved like an Eagle Scout. Most analyses in the NYT have pointed this out.
Bush drove the economy into the ditch back in 2008 and stuck Obama and Bernanke with job of digging us back out with a GOP congress obstructing every inch of the way. What took Bush 8 years looks like 2 years for Trump.
20
When Trump inherited the rising stock market from Obama he didn't waste time congratulating himself! He strutted around at his rally claiming it as his own! Now, however, it is tanking. What does he do - blames everyone else! Can we have Obama back in the White House?
32
Trump and the GOP gave wall street trillions in tax cuts this year and soon another trillion in stimulus due to big to fail. We need to put wall street back on capitalism. Companies that can not survive on their own merit need to fail.
6
Now, it looks like economy will improve only after he leaves his position in the white house.
7
Given that many compare the stock market to a form of casino and the guy allegedly in charge managed to bankrupt a casino....anyone feeling nervous yet?
20
“The president apparently is blaming Mnuchin for the markets going south, which is a fairly strange thing,”
Not strange at all for Trump... if considered negative, everyone else's fault except his. Always has been and always will. Why would anyone want to work for the clown... life is too short.
12
Any bets as to when Trumpy Bear takes credit for the crashing Stock Market?
God knows he was quick out of the blocks to crow about all the hard work he (er...Obama) did by his second month in office.
7
The market doesn't like an erratic, inarticulate, wildly incompetent and unpleasantly unpredictable president?
Who knew?
29
Is there any rational informed person who still does not get that Trump is ruining our Country in all ways he can? Many are silent or openly support him for their personal, financial, political, prejudicial, philosophical and religious gain and causes but there must be few in their right minds who can read and write who really don't get the disaster Trump is.
5
Can't stand all this winning provided by our stable genius. My 401k looks like it was managed by Bernie Madoff.
15
Once again the boy king shows how he is incapable of understanding and/or managing the responsibilities of the office he somehow attained. Once again the boy king shows how he will always refuse to take responsibility for his actions.
It's been said (#)winning is contagious. I'm so glad I got my flu shot.
5
My 401k can’t take much more winning.
14
Like many financial issues, it hits the poor, retired and middle class. Like your other readers, I sure hope the little guy doesn’t have to pick up the tab for Wall Street again.
7
I'm still waiting for Trump to "hire all the best people". I guess it's tough for the "smartest person in the room", who knows more about immigration, knows more about ISIS, knows more than the generals, and knows the most about taxes, debt, trade, tech, and the horror of nuclear, to find people as smart as him.
The man has no clue that the majority of the people in this country laugh at him every time he opens his mouth.
14
Contrary to what Mr. Trump says, the stock market is reacting to his and his administration's gross incompetency. President Obama left office with a strong economy and an amazing stock market record. Now, despite feeding the economy with a sugar-high dosing of corporate and billionaire tax cuts, the US economy is looking shaky. So is the global economy thanks in part to Mr. Trump's hugely ill-advised trade war. Time to replace this administration with a competent one.
10
I am beginning to think that the only salvation for the U. S. is for a step back into reality -- i.e.another 1929 !! We have lost our way -- and may never get it back.
2
Anyone who’s retired and has a lot of stock exposure made a mistake. Hopefully that hasn’t been to case for many, but I’m guessing that’s wishful thinking and a lot of seniors have taken a pummeling this month.
6
@Abe
Most financial advisers in the media have emphasized that even people in their 80s, and certainly people in their 60s, should keep a substantial share of their savings in domestic and international stocks. This is because for at least 10 years, bonds, CDs, etc. have such low returns and/or gains, that investors relying on them exclusively could not keep up with inflation.
Considering that this could all be Putin's end game, he is having a Merry Christmas...and will likely enjoy the New Year as well.
10
Putin approves of Trump's behavior, and his policies.
10
The Grifter president continues to exhibit the Dunning-Kruger effect which means that his ineptness makes him unable to understand how incompetent he is in carrying out his duties. He truly believes his position is impregnable. It appears the Senate is finally prepared to put the squeeze on Trump and Mueller is preparing to roast him. Thereafter, the House will initiate impeachment hearings. I can barely wait to see Trump on the curb, hat in hand, begging for understanding after he has been ushered out the door.
12
I've lost a significant portion of my very hard-worked and well-earned 401(k) portfolio over the last few weeks thanks to the idiot-in-chief in Washington, D.C. I am extremely unpleasant (you won't print what I really want to say). Donald Trump is clearly incompetent. Along with millions of you, we may not be able to feed ourselves into our 'golden ages'. Many of you may not have the benefit of a 401(k). DJT can sell his fleet of aircraft, his luxury hotels and many MANY private dubious investments to continue eating caviar.
How are you going to feed your family?
All you people who paid for the red ball caps? He's ruining any retirement you hoped for, too.
All he's doing is making America pathetic. World-wide.
And you helped.
You have a chance to change things for the better..
MAGA??? That's a joke, and the world is laughing. It's NOT FUNNY, it's pathetic.
41
.....and Trump is like a deceitful golfer who scores his round as 6 under par when he is really 6 over par.
He has no concept of the truth, reality or honesty.
14
Oh the irony of the "best" market ever. If Mexico is so "bad" why is Mnuchin vacationing there?
19
This is what happens when you have a bunch of neophytes trying to run the government. It's not a corporation.
Although as someone else pointed out the other day any CEO who ran their corporation the way he's running the government....well that CEO would have been fired by now.
19
My grandparents and most of their generation got through the 'Dirty '30's' by hard work, strength of character, and making sure each quarter did the work of a dollar.
Somehow I am not sure many of my generation or my children's generation share that same strength. I hope I am wrong but too few these days know how to be happy with less. Least of all America's President Hoover.
10
Very stable genius = very unstable stock market?
7
I am furious,
This is my retirement that I am relying on that is at the hands of this maniac. Money my husband worked so hard for and saved for decades to make sure that we would be comfortable. For years we have ridden the ups and downs of the market, we understand ebb and flow.
But now in retirement there is no way to make up for money lost. To have retirement funds in the hands of an absolute buffoon who won't read a thing, won't listen to advisers, causes instability because he is so impulsive and reckless and has temper tantrums because he can't get a stupid wall that every one has told him is a waste of money.
So he'll teach us. He puts our country at risk of insecure borders not because exceedingly poor people flocking to this country in need of a better life but because of what he owes Putin for favors he received and is withdrawing forces from Syria and Afghanistan and will allow ISIS and other terrorists to flock our borders and bomb our people.
Senators are powerless because they put their own political gain before the country, they sit on their hands and let this unstable idiot run this country into the ground.
For heaven's sake, someone with guts needs to stand up to this clown and take this country back.
67
@LB Same here. There must be Republicans in tbe same position.
12
Our President Trump points out that everything that seems to be going wrong in the nation is someone's else fault---hum, but with him being the big can-do-guy why is there anything going wrong that is the fault of anyone? Is President Trump’s need to find fault with others also the fault of others?
12
Classic sociopath. Look it up.
7
The French are way ahead of us, as usual. It’s time to initiate a massive 24/7 protest in front of the White House and Congress until Trump and the Republicans get the message. “You’re fired!”
17
The Bear market was coming and at most all the Trump actions have done is hasten what was already coming. The stocks markets ran up an incredible amount from Election Day 2016 until recently way out of proportion to the economy.
The markets are not the economy - they long ago morphed into a casino more than anything else. Where else do managers that lose money for clients get such huge paydays?
6
How do the one-percenters like Trump and his economic idiots now?
12
What could be more destablizing to the stock markets other than 1.) threatening to fire the Chairman of the Federal Reserve Board, the most important economic decision maker in the U.S. economy 2.) being under a vast cloud of investigation by your Justice Department and threatening the integrity of the department 3.) continuing a trade war with your leading trading partner 4.) running trillion dollar deficits with no plan whatsoever to end them 5.) facing impeachment in the near term from the House of Representatives 6.) losing most of your senior staff 7.) open discussion by the media and leading public figures over the possibility of invoking the 25th amendment.
Do any or all the above suggest that the stock market would correct itself?
654
@Yankelnevich Good post, but even so you missed quite a few...
20
@Yankelnevich Impeached on what grounds ? Seriously I would like to know on what grounds would you impeach Donald Trump and has far as the “stock market” this was in the works and would have taken place no matter who was elected president. I think Trump in some aspects is doing a good job .
2
@Edward HC Graydon,
Say it with me class: "Obstruction of Justice!"
Individual-1 told Lester Holt that he fired comey to take the pressure off the russia thing.
That is the textbook definition of, say it with me class: "Obstruction of Justice."
He also asked russia, a hostile foreign power, to hack the computer of The Secretary of State of The United States of America.
That is collusion.
He knew the russians met with his son, manaforte etc...sorry, my hands is getting tired.
82
Boy....nothing says "reassuring" better, than a conference call from Steven Mnuchin, on a beach somewhere in Cabo. I feel better already!
At least Trump did the right thing. staying in D.C. (never thought I'd ever say something in HIS defense!)
11
President “pass the buck” just can’t seem to grasp that his ill informed tariffs, threats of trade wars, and moronic tweets are the cause of all of the recent market turbulence.
427
@Sean Eddy
Remember the S&P 500 hit $20 trillion for first time in history not long ago. This is predictable correction.
Merry Christmas.
@Sean Eddy Its easy to see that anytime there is the slightest bit of positive news, even if only a rumor, on a positive turn on trade, the stock market responds with a hearty approval.
Not sure what Navarro is trying to do and why!
Nice job Trump with a president like him who needs enemies? By new year's our economy will be in shambles with chaos and instability.
12
I think I've had just about enough winning now.
24
You took my line. :)
3
Everyone who has access to some coal should deliver it to the White House tonight and tomorrow!
15
Yet Trump might actually tell someone to burn it, adding serious contamination to centuries of miner death and disease. We could make an exception if the EPA were delivered from management by its historical (self-annointed) enemies.
3
Why would the investment and business community continue to support the Republican Party after this? Lets all hope that in the next election rational self interest prevails.
13
Mnuchin is a financial lightweight but Trump cipher. It is quite likely that he took this ignorant action simply because he felt like he placate his mercurial boss -- who he lives in fear of -- and show that he was doing "something" while down on vaca in Cabo, while his boss was angry and stewing back in DC. Before Trump turned around and noticed that his Treasury Secretary was not around, and turned his sights on Mnuchin.
7
The fed isn't the problem Mr. Trump. The problem is you and your elementary understanding of economics. You are single handedly sending the economy into a tailspin.
24
Imagine if the market is down 5% next week, and another 5% the week after that. And the government shutdown is almost not even a news item, alongside the stock market news.
And Trump is in the Oval Office saying that he wants his wall.
Don’t laugh. It’s all quite possible.
22
@David Martin
No sane person is laughing.
8
Or sentient person
2
Trump is "just being Trump"-- a "stable genius" replaying all his crooked business failures, bankruptcies, and lying rants against his enemies for denying him that "big, beautiful wall that Mexico will pay for." Merry Christmas to all you Trump cultists, aka "the base"! Are you happy now?
12
Salvation is at hand, dear readers! While Mnuchin is vacationing with all the “rapists and gang members” in “dirty” Mexico, we can quickly build the Wall and not let him back in. We don’t need those corrupt Bankers coming into our country!
29
This truly is " The Gang that Couldn't Shoot Straight ". What scares the Market is the thought these guys could get there hands on the Fed. There is a reason the President can't fire the Fed Chair
5
trump's tax cut went down well with the rich ...trade wars , not so much ? I love that trump is turning purple about it though !
4
One question to the senators who most likely won’t convict him if the House votes to impeach: Is this president upholding his oath of office to protect and defend the United States? Was this chaos worth the tax cut? Ok, maybe two questions.
8
Well now as we all slip into a recession I do hope the base is happy with the disrupter they voted for. As the farmers lose there farms because of tariffs keep believing in the tv show host. When Susan Collins reflects on no health care in her state and the fact that she didn’t stand for anything she can be cute and coy on Fox News.
Fox News represents all middle aged white men and women. Their Leader is a traitor to Democracy.
12
Tony (NYC): “Fox News represents all middle aged white men and women.” I’m middle-aged and white and a woman and Fox does not represent me.
10
It's time to take him in for an involuntary psychiatric evaluation for imminent danger to self or others (all of us).
7
Let me try to inject some historical realism into this psychotherapy for markets session.
We are due for a correction for what is nearly the longest bull market in history, which has occurred under very low interest rates for a very long time, as well as Quantitative Easing; that is, under very strange circumstances.
So the underlying nervousness is due in part to doubts that this economy is really as solid as those two much touted big numbers have been celebrating for years now. Labor is just beginning to see gains, and if you believe Dean Baker, and President Trump, the only thing that is wrong is clumsy and ill-timed Fed. Reserve action in raising rates. But the Fed is accused historically of causing all the recessions since WWII by raising the rates; so what's new in capitalism about that?
When workers start to gain too much the inflation interest rate Bond Vigilantes are always lurking in the forest, even though James Galbraith tells us its been a very pale ghost for 40 years now, thanks to billions of new workers from around the world and a very different economy than in the 1970's.
But is it just human mal-agency, the clumsy, nervous Fed causing the troubles? I think that both Hyman Minsky and Michal Kalecki would have something more profound to say about that - that boom and bust never entirely go away, and if your're just measuring since 1987, we're overdue for trouble.
We won't know where the hidden fault lines are until the stress increases.
6
Note to Kentucky...Are you better off now with Trump as president and your guy, Mitch McConnell, as Senate GOP leader? How is your 401K, your Obamacare rollback, your job? If you answer in the negative, then please Louisville, Frankfort, Paducah, Harrodsburg, Fort Knox and places in between, please tell Mitch that his home state is tired of these shenanigans. Make Mitch antsy! Maybe he will listen to his home state when they tell him his job really isn’t a lifetime gig.
15
So is the new adult in the room Mnuchin? Trump is killing us all.
3
As one which said to the other, Surrender Donald!
2
Minuchin, vacationing in Mexico, shows how little he understands the USA. Common sense is obviously not inborn. Perhaps his Scottish wife told him it was in the Mexican/ Hebrides and he is wondering why it is raining and dark at 4pm ?
8
The lunatics are running the asylum
7
The 1929 stock market crash that led to the great depression of the 1930s was caused in no small measure by tariffs leveled by the Hoover administration. We have an idiot in the White House who thinks he knows more than anyone else in the world. His tariffs have caused markets around the world to be unstable. Will he accept the blame for the great stock market crash of 2018 and 2019 and the possible Trunp Depression? Of course he won't. He will only put the blame on the Feds and the Democrats.
534
He is an idiot but this is all on two people. Mitch McConnell and Paul Ryan who could have brought normalcy back but they only care about their wallets not the American people.
114
@Jan Nelson
An idiot who thinks that everyone else is more stupid than him.
36
@Jan Nelson
How old are the Koch brothers? They've been trying to take the country back to pre FDR times since forever - They're against Social Security, Medicare and any other program that provides a social safety net. Take away those programs, ones that people pay into all of their working lives, and what do you have?
I wish the press spent more time on this angle.
66
Last Christmas, right after he signed his Largest Tax Cut In History, he told the members at his Mar-A-Loco club: “I just made you all very rich”. I wonder what his message was going to be this year? Maybe that’s why he’s staying in DC.
552
This is a tremendous buying opportunity for anyone who finds themselves with extra cash like from a year end balancing of their accounts wherein they find their tax liabilities to be much lower than the same point a year ago.
9
@From Where I Sit YOU go first. Thent look up what the expression 'catching a falling knife' means on Wall Street.
25
@From Where I Sit I and many other investors are sitting in a rather uncomfortable position. Many of my mutual funds are paying 6-8% dividends, but the NAV are down roughly that amount. So I have to pay a great deal in taxes for a reduced portfolio. Since most long term investments still made money, sellers can't easily invest because they will have a large bill come April 15th.
20
Trump’s undeserved economic success is ending as
the financial sector comes to the realization that chaos and volatility and trade wars are not good for the economy.
Unfortunately American investors will soon suffer the consequences and it won’t be pretty.
What will prevent a repetition of October 1929?
The Republican Tax scam with its enormous and unjustified increase in future debt won’t help as well.
Trump’s impulsive and erratic nature and lack of knowledge will make him ill prepared to handle any real crisis. He will not be able to calm the inevitable
financial panic that will ensue. God helps us. But I feel a Great Depression is more and more inevitable.
Remember Trump specializes in multiple bankruptcies. America will be his greatest success!
296
@IN That's right, multiple bankruptcies, no legitimate NY bank willing to lend to him anymore, and increased reliance on questionable foreign goverments and their politicians for the money he couldn't get from the banks.
54
I’m far from an absolute Trump defender but the facts are the facts. He had one near miss where his personal finances were in trouble and he was forced to sacrifice several properties to bring it back into balance at the hands of his lenders. Subsequent bankruptcy filings have been the use of a business plan that mimics that of Sports Authority, Hostess age Toys R Us. Debt is loaded on, payments are taken for services rendered and the balance sheet, now with liabilities that outweigh assets, is the basis for bankruptcy. It’s a business plan not a a business failure. That’s how he installed plumbing in a 28 story AC hotel for 7 cents on the dollar and got $1,000,000 in custom cabinetry at a 49% discount. Upon the completion of Trump Tower two decades ago, Ivana Trump used the same “muscle” to not pay designers and the trades for work they did in model apartments. It’s an important part of doing business these days.
9
@IN Krugman warned that this would happen. The problem with Krugman's column is that the very people who should read it don't. And if they did, they wouldn't understand it.
14
“Maybe he’s just worried because he’s in Cabo, the markets are going down and the Treasury secretary is in another country and they don’t like the optics of that,” she said.
This is what caused Mr. Mnuchin to announce the call and stoke the chaos in today's market. While there is evidence that Mr. Mcuchin may have actually meant to calm the markets by announcing the call, I refuse to believe that somebody who managed to rise high enough to become Treasury Secretary wouldn't realize such a decision would backfire.
This administration is being run like a bad office, where government employees gather around water coolers to discuss how much they hate their boss. It makes sense that, in such a mismanaged environment managed with intimidation and fear, Mr. Mnuchin would first concern himself with preserving his own image, avoiding his boss's backlash and staying in Trump's (almost) good graces, rather than with performing well as Treasury Secretary.
136
@Chris: Cabo is THE in-place for the mega-rich these days.
9
@Chris: I thought Mnuchin was in Cabo to collect the pesos needed to fund the Wall!
34
@Chris
Hanging around the water cooler doesn’t just happen in government offices. It happens plenty in private ones. Take a walk around your own business if you have one.
We have a president who shows us daily what a private company can be. It is, after all, his claim to fame. His supporters think he is a brilliant businessman. Reality tv said so. Who are we to dispute that?
1
Maybe the tariffs, maybe the abandonment of traditional allies, maybe the government shutdown over a (ineffective) wall, which supposedly Mexico was going to pay for, maybe an immoral president who is under investigation for both federal and state illegalities, maybe the vast turnover in the White House, maybe the fact that the government will for the next two years be ineffective and partisan, maybe a lying narcissist who ignores his advisors or puts cabinet advisors determined to destroy the environment, and all the departments they have but in to oversee. Maybe a student loan and bond issue. Maybe a combination of all of the above, and more.
177
@PLB
Maybe because the unemployment rate is at a 50 year low, maybe consumer confidence at 17 year high, or maybe because there have been no North Korea tests, maybe the return of American soldiers helped, maybe Assad not gassing his people because of the missels, maybe the deportation of 2,000 felons that made us safer, maybe the imprisoned have hope she to "First Step," maybe the depleted military being no longer " not combat ready" was appreciated, maybe NATO promising to pay $10 billion more will save us a lot, maybe being energy independent, Keystone, AWAR and maybe Trump will get just a modicum of fair, balanced and positive coverage from the MSM. etc. etc.
Maybe our President will be re-elected in 2020?
@PLB There are a lot of reasons. I called a finacial advisor a couple weeks ago and I told him to sell. He wouldn't. We argued. He has been watching Fox news. Seriously. He said there was no good reason for the correction. I said what good reason is there to believe that this government will do anything productive on any business issue. I was right. he has been drinking the Kool Aid.
6
The panic selling in the market is the result of 2 unnerving occurrences. Feds increasing the interest rates and profiting taking by those who time the market and are in the markets to make a quick buck by buying low and selling high. The rest of the people who are invested in the market will have to hold on as buyers will be back in the market looking for bargains. Remember the Kotwal principle, you have lost nothing until you have not sold at a loss. Second principle. Diversify, diversify, diversify. Right now the fixed deposit rates are quite reasonable compared to savings account interest which are less than 0.5%.
As far Prez Trump taking another swipe at the Federal reserve. He is absolutely right. What made the Feds think that the economy is strong. No Mr. Powell (P) the economy is fragile, a house of cards. There was no need to raise interest rates just before X'mas and announce more hikes in 2019. Trump would be justified to fire P but he has no authority to do so and hopefully he will not. P of course could resign on his own and misjudging the effects of an interest rate hike could be a good reason if he does.
That brings me to what powers does the president have? Certainly a lot less than what Trump thought a president has when he took office. It is fine that we have an independent judiciary, an independent congress and an independent presidency but when the checks and balances on the presidency can bring some obstacles to governing then there is a shut down.
15
@Girish Kotwal
Increasing interest rates has always been the standard practice to rein in inflation. Inflation that was further fueled by giving an stimulus tax cut in during a period of strong economic growth, liquidity and employment. The hike in interest rates is just the logical consequence of the tax-cut sugar high, as was widely predicted by economists when the GOP passed their tax bill. The Fed maintaining the near-zero interest rate period under these circumstances would have been extremely irresponsible and highly damaging to the economy.
80
@Girish Kotwal You blame Powell for the rise in interest rates when he is just one voice among the Fed governors and I believe there is a consensus of opinion to be seen before any Fed action and a review of empirical evidence. Do you assume the chair is the only voice in the room?
40
@Girish Kotwal: Raising capital at lower cost than paying interest is the reason for stock. Shareholders expect growth and capital appreciation to reward their sacrifice of income. It is abnormal for returns from stock dividends to exceed interest rates required to raise capital by borrowing.
14
Trump boasted and crowed about the market went up due to his election. Now the market is tanking, he's in full panic mode, blaming every one but himself. Such an incompetent, idiotic fool who lacks the very basic understanding of the market. Market needs certainty, his policy causes so much chaos and uncertainty that causing people to sell, selling begets more selling as the market tanks. This fool needs to wake up and change course before it too late.
234
@Jim
You claim to understand the market? It goes up and it goes down. The S&P 500 bit a record $20 trillion, this is an anticipated correction.
@Frank Leibold Not really. This correction could have been handled much better. It was set to hit in 18 to 24 months. There have been strong performance predictions for the 2018-19 markets. They have been undercut by all the actions mentioned by readers in this comments section. At this point we are in unchartered territory with the trade war and now the war on our fed and our military on and on. The market cannot rise without stability. It seems very clear that Trump's departure by whatever means is what the markets are now calling for. Knowing Trump is a lame duck (no way is he getting elected again.), and they are calling in their markets from Russia to Boeing. Oh and the Steele barron who can't wait to build the worthless wall. Talk about reviving an industry with a campaign contribution. So he's really not that crazy. He's just the most corrupt president we have had. Until he is gone we are on the same path as Venezuela.
5
He's always blaming someone. He makes appointments, lauds their brilliance -- the best ever to hold this position -- and then throws them under the bus when something bad happens, even if the appointment had nothing to do with it. What a guy!
266
What the administration and congress should really be worried about is the huge debt mounting in the public and private sector. It will strain the economy eventually to a point that would make the last crisis look like a walk in the sunshine.
6
Ryan warned about the debt a year ago and was blown off. The hop of Democrats cutting even a penny in spending is wishful thinking. General Fund Medicare and Medicaid spending needs to be brought to zero - restrict Medicare spending to that covered by payroll deductions and premiums (about 60% of the cost) age eliminate Medicaid - we survived for 189 years without it. Social Security Trust Funds interest rates must be recalculated lower and paid back in a longer scale. If the FRA were raised to 75 or lifetime collection of benefits were limited to 10 or 12 years, the cost of the program (and eventually SS deductions) would go way down.
@From Where I Sit
“Ryan warned about the debt a year ago and was blown off..”
Medicare and social security are not the cause of the debt…both still have surpluses…but the GOP will spend it all.
Ryan only cared about the debt when Dems were in office. With zero help from the GOP, the deficit went from 8% of GDP to 3% under Obama…but Ryan couldn’t have that trend continue even with unemployment low. He is fine with the projected two trillion dollar plus deficits from the tax cuts for the 1%.
The last balanced budget was under Clinton and that will be the last one forever. GOP loves debt and deficits as long as it is on their socialism.
10
Always able to make a bad situation worse, Trump is now setting fire to the great economy he bragged so loudly about. Mark my words, his next epic blunder will be to drag our country into an unnecessary war, most probably on the Korean Peninsula, unless the feckless members of his own party start to exert some control over him...now.
177
@James Mazzarella
War is the Republican way to prop up a stumbling economy. But Iran seems to be a far more likely target. He'll have an easier time getting Congress to climb on board if he targets Iran. He might even get a few Democrats in the House to support him since very few politicians will have learned any lesson from the Iraq invasion.
10
Very ironic that Mr. TRE45ON himself removed Janet Yellon and put in place the current chair J Powell....
While the Fed may be a threat to the economy, the biggest threat is the WH. All the chaos they are causing will eventually upset the market and economy.
11
Or perhaps Trump would like The Fed to golf the way he does; Feel it out, putting that finger to the wind to see what you'd like the score of the economy to be and mark your card accordingly, regardless of what those angry rule-making professionals call par. It really helps if everyone present looks the other way, but then, that's why they've been chosen to be there in the first place. Loser buys a round!
4
A nation abdicating responsibility to the western world, led by a narcissist and likely felon and we get golf metaphors. Nero anyone?8
12
Yes there was great exuberance in anticipation of a Trump presidency but eve with a mega tax cut for the rich, Trump’s 2nd year has been a dud for the market. Just look at the trend in the DOW.
2
So "DJT" also stands for "Dow Jones Tanks." The first is the cause of the second.
8
Someone should take away Trump's magic eight ball/insult ball.
1
Who said “the buck stops here?” Not Trump.
Also, isn’t the most basic rule of investing that markets are unpredictable and cannot be controlled? Even the Fed will say that. But, not Trump. He thinks he knows why the market is tanking. Because, well, he’s a stable genius, of course.
3
Tom Friedman has it right...it's time for the Republicans in Congress (particularly in the Senate) to threaten to fire Trump. And, in the unlikely event that he doesn't change his erratic behavior, resignation and impeachment need to be on the table. Trump is not a positive disrupter but an ignorant, callow destroyer.
7
Agreed but the GOP sold their soul and now have a problem. There are still a ton of people who love Trump and hate the GOP. The party is in a lot of trouble.
5
No, it's you, Trump. It's you.
7
No surprise about Wall Street. A stable market needs a stable government and a stable president. The US has neither.
15
I think we've had about enough of this president. I am personally aging at an accelerated rate since 1/20/16.
7
You know who benefits from a crashed economy? Rich people with cash to spend. When the prices of properties and services go down, the rich can scoop them up and add them to their portfolio.
11
The T3 (The Tyranny 3 as Senator Corker called those Radio Talk Show Hosts: RL, SH, LI) who had been programming the minds of voters with third world politics get the credit for election of Mr. Trump. No wonder Trump’s followers believe that Putin is not an alien but Obama is. When stock is up, he shouts for credit and when down, he points the blame at Fed's Board. The red states of first world democracy had elected a third world president and all real issues (budget deficit, illegal immigration, trade deficit, expensive education and medical care etc...) are being muddied by a "bullying" president. Our only hope to save USA from Trump is Mr. Mueller!
5
There is lot of negativity in the market. Any
statement, intended to assure, is interpreted
for some negative hidden meaning.Market's
WMD moment will come when reality
confronts their doom scenario. If the economy
stays healthy market will lose credibility.
Anxiety about interest rates going up is
baseless. Interest rates are low by historical
standard. Historically, rates ranged between
5% to 8%. Paul Volker, former Fed chairman,
spiked to 14%+ to tame the raging inflation.
Inflation is slightly below 2%. Interest rate
is between 2.25% and 2.5% after the recent
hike. Real interest rate is about .5%. Why
the market is going through turmoil for this
tiny interest rate. Looks like a few big hedge
funds started sell off, the herd mentality
took over. These wall streeters talk to each
and reinforce the negativity. Generally
market tanks in the afternoon after they
comeback from their sumptuous lunch and
sell off before going home. Hopefully, the
fed raises rates more to provide an alternative
to the speculative frenzy of the stock market.
3
Welcome to episode 387 of The Keystone Cops: White House Edition.
3
Analyzing the Dow via the president is a game for amateurs and hacks. For the last 2 years the DJIA rose from 16K to 26 K. All during the rise, the faithful NYT commentariat said this was Obama's market! He got all the credit! Now that that the DJIA is falling--or correcting---these clowns are blaming Trump. When things are up, Trump gets no credit. When things are down, Trump gets all the blame. Grow up, you guys. There's more to world economy than this simplistic analysis.
2
@Burroughs
No one believes Trump is not exacerbating the problem with his current actions.
No one.
11
@Burroughs,
Your comment is very simplistic - the economy is like a cruise ship, it cannot turn on a dime. The work that the previous administration did flowed on for at least 18 months after they left office. Now, it is the work of the current administration that is affecting the numbers. BTW, that effect will continue through to 2021 at the very least - perhaps through to 2025.
10
Nice Christmas present, Mr. Trump.
6
It seems to me that the fairly obvious question is, did Trump signal his intentions to insiders so they could take advantage of these dips? Or has his organization taken unfair advantage of these dips?
5
@Third.coast
I've suspected this for a while, now. Particularly concerning Wilbur Ross and his shady "disinvestments".
3
Impressive.
Trump did in 2 years what it took Bushie 6 years to do: destroy a good economy left from a Democratic president.
19
Looking for reasons, Trump?
Go find a mirror.
And those poor deplorables, they thought they were on a one way street. led by their god-like hero. Trump said "BUY." Now what??? More unhappiness...
3
If the economy is as strong as the administration and talking heads on the cable financial stations claim, then why are Trump and his so called tax cut supporters bellyaching about a lousy increase of 0.25 points?
A strong economy with low unemployment and low inflation rates should be able to withstand the increase.
5
Well, whatever he shared, the banks now know more than the US citizen. And the banks cashed out this morning. I can only imagine what he is seeing.
6
Dear Santa' all I want for Christmas is one Impeachment and a thorough cleaning of 1600 Pennsylvania Ave, If you deliver on this request, I promise never to ask for anything again. PS I would be willing to bet that many other American citizens would sign on for this one time request. Merry Christmas and Good night to all.
10
This president, before he held office, suggested that any sustained loss on the Dow Jones (1000 points over 2 days) was a nearly impeachable offense for the president. Now he blames everyone else.
As usual, everyone is to blame but him...
13
All Trump can think about is being out on that Golf Course. Shut down the government to get a little "swing time" in. 2020 can't get here fast enough.
2
By golly mr president, we're tired of winning! Enough already!
3
Well, it’s official. Trump is dealing with this country the same way he dealt with his businesses - he’s destroying it through ignorance, stupidity, and narcissism. Will he be able to walk away from the USA the way he did from his multiple bankruptcies?
3
Minuchin's business experience consists almost exclusively of separating gullible people out of their homes with his shady bidness practices. Any country with the bunch of jerks we currently have leading our country is in real trouble.
We cannot possibly win a trade war with China unless we define winning as what France and England, with our connivance, did to Germany at Versailles in 1919. And how did that work out 20 years later?
Trump and his cohort of grifters are leading us right off a cliff. This is our Wily Coyote moment.
18
Mnuchin calmed the banks by calling to ask them if they had enough liquidity to see them through Trump's tantrum...in what universe would that calm a worried banker?
26
Trump's economy is supposed to be strong, stable and booming. Yet apparently Trump thinks a .25% rate increase is going to cause it all to come crashing down.
Both things can't be true.
Trump, as always, is deflecting blame for problems that are undoubtedly his own making.
18
I have read that financial markets don't like uncertainty, the current president and his gang are as uncertain as it can get.
20
Janet Yellen was a putter, Mr. Trump.
After powerful Fed golfing of 2008-'09 sent millions of balls onto the green (as rate cuts and Quantitative Easing), what we needed from the Fed—as your comment suggests your lifetime of golfing would've prepared you to understand—was a putter, a dove.
Yet your political cronies are ideologues, Mr. Trump. Seven years of gradual improvement (the most sustained economic recovery in our lifetime) wasn't enough for them. They wanted to start massive trade wars. To rip out regulation root and branch. The biggest tax cut in history. To slam the government into shutdown over and over.
And, Mr. Trump, it has occurred to you, they wanted immoderacy.
The most moderate, apolitical person in the federal government when you were inaugurated was also the one most willing to stay on for a second term, had you asked—Federal Reserve Chair Janet Yellen.
She's no "showboat," no "grandstander." She hadn't attacked you, nor endorsed your opponents. She was just competently and moderately doing her job, which included unwinding QE so slowly she literally described it as "like watching paint dry."
It also included taking notice when markets suggested possible global economic slowdown, as at the end of 2015. She paused rate hikes accordingly, and we enjoyed total recovery in 2016.
You dumped her for an ideologue, a hawk; a triple eagle, a condor. You slapped away the iron aptly handed to you and pulled out your 1-wood.
But good God man, this ain't golf.
42
@J T Wonderful metaphor, thoughtful comment, thank you.
3
I don't care who President Trump attempts to blame. What I want to know is what I'd expect of any leader worthy of that label. What's your plan for righting the ship?
But the president doesn't right ships; he just sinks them, blaming other people for the loss.
27
While Trump has caused this fast and furious sell-off, please keep in mind that with a record amount of margin debt and leverage, there will be significant and continuing margin calls unless the markets have a prompt turnaround. Then there will be selling just to get "liquid" which begets more selling, leading to an even sharper downward spiral. And it should be noted that with the FDIC having increased the amount of coverage to $250,000 per account from $100,000 ten years ago, we haven't experienced the effects of bank failures with such a greater amount of money on the line. Keep your seatbelts on....
11
@marty Amen, brother.
The formula is simple: when things go well, take credit and boast. When things go poorly, point fingers and blame. What about taking constructive action with the team of experts you have assembled? Governing is not a popularity contest. It is a job that requires actual effort.
11
It's totally amazing at this point that there is anyone who takes Trump seriously as a President.
19
Trump always finds someone to blame:https://www.nj.com/politics/index.ssf/2016/08/watch_did_trump_blame_ac_casino_failures_on_dead_e.html
2
Great work Munch. We're in free fall due to Boss Baby. Only thing to calm markets is if Trump decides to offer his resignation letter to American people.
20
@Tim B - Your last sentence is the Best.Comment.Ever.
3
The stock market climbed when Trump became President because Republicans are pro-business and Trump was a billionaire. He was expected to convince the wealthy and corporations to open up their savings and invest their billions. The result should be a boom and huge fortunes to be made as the economy exploded and demanded huge outlays of capital. Well two tears in and while the recovery has persisted it’s not turning into a big boom that attracts heavy investment and rapid wealth creation which can justify huge capital investments in the real economy. So the over optimism led to an adjustment. What seems to be driving the huge sell off seems to be uncertainty and fear of recession because of trade wars, debt from huge tax cuts, and disruptions in the international order which threatens to undo the world order that produce relative peace for seven decades. Trump is undoing the benefits that his election brought to the stock markets.
6
@Casual Observer: Trump is a flim-flam man who escaped the most elementary vetting any normal person would expect to comply with.
9
Could the stock market slide be the result of the Democrats taking control of the house. That is the only thing different than three months ago.Wow what a novel concept.Pelosi and company are back.
@Sean Mulligan Trump has lost his mind. Wake up.
21
@Sean Mulligan.." Sorry Sean, that's not the deal. Remember, Republicans break things, Democrats fix things.
20
@Sean Mulligan
Really? Thats all you got?
14
When Trump began suggesting he was going to run for President, he said he was going to run the Country like he runs his businesses. The two major businesses that Trump was involved in prior to being elected were real estate and casinos.
You can argue he got lucky with the real estate business and made money from the sheer volume of cash, not paying vendors, cheating on taxes etc. But, he was the son of a very successful real estate tycoon and undoubtedly learned much about that business from his father.
His lack of any experience or expertise in the casino business led him down the road to multiple bankruptcies and he was within inches of a personal bankruptcy.
Now he is running (or trying to run) the economy of the U.S. He has zero understanding of how the economy works because he has no experience with the macroeconomics of government, doesn't read and doesn't take advice.
All of the above doesn't even take into consideration the effect of multiple mental illnesses, especially his readily apparent pathological narcissism. How is this Country ever going to be okay as long as he is in office?
18
One final comment about the Apocalyptic Grinch before Christmas:
He is an expert at nothing. He creates nothing but havoc, discord and animas. As far as anyone can be from a stable genius - the ultimate oxymoron.
The best wish for this holiday and the New Year would be for good people everywhere, of all creeds, to reject Trump as that which he is - a destructive narcissistic sociopath who needs to be behind bars for the sake of all we hold dear.
...and I would have hoped simply to wish everyone a Merry Christmas and a Happy New Year. This is neither.
16
“On Sunday, Mr. Mnuchin, who is on vacation in Cabo San Lucas, Mexico, said he had spent the day calling bank executives to reassure them that the markets were functioning properly.”
What? Mr. Mnuchin is on vacation In Mexico? Please don’t let him back into the United States!
16
@Dean
I’m especially concerned that he will bring back smallpox, leprosy or rabies.
3
Me thinks the clown that would be king occupying the People's House is sitting up in his pajamas binging on Faux News, waiting on his father to come bail him out as he's done all his life. Sorry Clown Man, it's not gonna happen. To borrow a phrase from Uncle Pete's soliloquy in the movie Soul Food, "...daddy gone now."
8
Donald, just shut up already. You're the problem.
34
Mnuchin calls CEOs from Cabo — one wonders where his buddies were... Aspen? Key West? Palm Springs? Trump would go golfing with unpaid Secret Service except the optics are less than stellar. So he sits in a mansion he hates. Meanwhile, grade 7 federal employees have to truncate their Christmas as their stopped $45,000 salaries don’t allow for much spending.
You live in a big sparkly bubble you morons!
12
Last year the billionaires tax cut. This year rank ignorance as to how his actions can impact the market. Get out!
15
The wealthy must be excited. All that stock and real estate to scoop up at bargain prices. It’s a win for them.
10
What's more likely: that a small, slow, steady, and well-communicated interest hike to still below-historic levels is crashing the market or that erratic, petulant governing by tweet is?
10
Probably neither. The market has gone up for a long time and bulls don't last forever. If the Fed had not raised rates, the market might have been flat for a couple of months before dropping. But the bear would still come. The disorganization in the administration may make it drop a little faster and bottom a little lower, but that's not the prime cause. I'm not smart enough to predict bear markets, but I've been though enough to know that the best thing to do is to sit tight and wait for them to be over.
2
@PS
The economic recovery has been going on for nine years at a consistent unrelenting determined pace since the catastrophic Bush recession. Yet in this ninth year of the recovery trump asserts he inherited "a mess" and incredibly claims ownership for the whole nine years of recovery, including the low unemployment rate. In truth he's been blithely riding the economic recovery success coattails of his predecessor. Now he's on his own.
4
Mnuchin's little ploy was so ham handed that any thinking person has to question its motivation. This is a Goldman Sachs banker; even if he's not the best one, he should have some understanding as to how a move like this would affect markets.
Liquidity? Who questioned liquidity? I suspect loan default rates have been creeping up. but banks, I suspect, are far from a liquidity crisis.
Individual 1 attacking the Fed doesn't help either
This is a presidency in extremis. They are willing to do anything to avoid losing power, including tanking the economy or starting a war to distract focus. They'll do this because they know that losing the presidency will mean a number of people having to disgorge their assets and forward their mail to Leavenworth, KS.
Or having large unpleasant Russian men exact revenge for having lost all of those assets.
6
By now it must be dawning on even the most deluded of Trump’s supporters that he is a dangerously impulsive and irrational incompetent disaster as president. We need to repeal and replace him before the damage done by his desperate flailing becomes irreversible.
9
I doubt it.
2
@Jack White, Let Mike Pence take over?
That would solve the problems.Who
wouldn't welcome the silent Cal.
1
"The only problem our economy has is the Fed"?
No.
The biggest problem is the Republican Party which enabling a complete incompetent in order to jam their plutocratic, anti-democratic agenda down the throat of the country.
There does not seem to be any depth that the Republican Party will not go to in order to pursue their agenda.
14
Will 45 allow Mnuchin back in America?
2
Anybody out there think it can't get any worse???
The oppositionally defiant, malignant narcissist, pathological liar, the subverted of good and right, anxiery laden bully will continue his headlong course into destruction. It's who he is - a destroyer.
7
Didn't think it was possible for our Moron-in-Chief to find an even more incompetent blithering idiot to serve as Secretary of the Treasury. But he did.
Am not sure how much more winning I can withstand.
6
Mnuchin is as stupid as Trump. His call to the CEOs heightens the anxiety that all is not well, it doesn't calm the storm.
And poor Mnuchin and his hideous wife -- on the beach in Cabo during the government shutdown while the worker bees aren't getting paid and in many instances are working regardless.
5
Are you better off today than you two years ago?
2
No. I am not better off after two years of the trumpasaurus. My country is deeper into debt, wealth consolidated into fewer hands, and health care further out of reach for millions of my fellow citizens. Only the 1% and fox news watchers think they are better off. Only a moron would shut down the government before Christmas over the wall having to be built. What happened to Mexico paying for the wall?
3
For everyone who cannot stop thinking or talking about Trump...for even one or two days....please try and enjoy life a little.
And for all those who think the sky is falling because the stock market has gone down in the past few weeks....here is a Fact (not fake news)…
Since march 2009, the S&P is up 330% !!!!
Happy Holidays.
1
Mr. Trump, the market is in free fall, and you must take exclusive responsibility for your irresponsible and unscrupulous behavior. Can't you shut up, once and for all? Can't you see your illegitimate power of the presidency a nightmare for all, and about time for your political 'hara kiri'? Trying to find scapegoats as a distraction isn't funny anymore.
4
@manfred marcus, shut up and seriously
resolve trade disputes with China, Canada
and EU. His negotiation tactics of threat,
nastiness, name calling is bad. Quietly
resolve the disputes and announce
the final agreement.
Trumpians . . . . . This is your fault.
Electing a dangerous, ignorant bully.
Most of the market turmoil is the direst result of his actions.
Hope you're happy. When is enuff enuff?
9
Mnuchin knows something the rest of us don't, which will come out sooner rather than later, so he might as well just quit now and spill the beans. But, apart from that, his Faulknerian idiot man-child boss is panicking about "access to the credit markets" because guess who functions primarily on credit? Dumber still, that's not how the Fed works.
Seriously, January 3rd can't get here soon enough.
2
Dear Santa:
Please make Donald J Trump and all his associated minions...Shut Up. Also please explain what a Mnuchin is and why it is allowed to speak on my behalf.
Thank you
3
Oh, investors are on a crying jag. There's no reason to shave trillions of dollars off the value of my dang IRA.
I recall on the eve of Trump winning the presidency that the futures market was down over 800 pts, but by the time markets opened, it quickly turned positive. I guess it took 2 yrs for that initial indicator to become a reality.
1
Well, it is the futures market... so there was quite possibly a 2 year maturity on those contacts
I'll get my coat on the way out
Mnuchin's calls....trying to repeat his foray as the pseudo-heroic "anonymous" in the NY Times op-ed?
2
It's almost Christmas...Can we please have a 24 hour moratorium on the press covering this Satanic sociopath and abject moron and his criminal family and incompetent grifter cabinet members?
14
I read somewhere that Trump is worried that he will be compared to Herbert Hoover. He'll be lucky to be favorably compared to Dwayne Elizondo Mountain Dew Herbert Camacho. The US President in "Idiocracy."
6
"Favorably compared"? I wouldn't be so quick as to jump to that conclusion. I would hazard that Terry Crewes' character would be the more favorable
2
The choice between President Camacho and Trump in 2020 would be a no brainer.
Waiting for the Tweet blaming the stock market chaos on the Democrats. No doubt it is coming. If I could stand it, I would switch on Fox News to see them bending themselves into pretzels explaining how the President is not to blame for the turmoil this country is in, and backing up the president that it is the Democrats causing all the problems. However, I do not want to spoil my evening nor my dinner.
Elections have consequences. Putting unqualified people in cabinet and advisory positions has consequences, and unfortunately, we are all reaping those consequences.
The stomach continues to churn on.
9
As always. Not trumps fault. He has to find others to blame. Sick of this broken record.
3
'We’re going to win so much, you’re going to be so sick and tired of winning' - May 26, 2016
Winning. So much winning. Don, please. No more winning. It's killing us. This much winning is killing the world.
Wait a second...I wonder if he meant 'whining'?
7
The markets are just sore losers that can't accept the fact that Hillary lost the election.
4
Steve Mnuchin is in the unenviable position of insisting the naked emperor is wearing a fine invisible suit. He has become another version of Sean Spicer and Sarah Huckabee Sanders; just another mouthpiece repeating what the master wants to hear. I eagerly await the day a child blurts out the truth and this ridiculous charade of an administration come crashing down.
4
Really!...Really!...It's Trumps instability roaring through his mouth and tweets causing unease around the world.
He doesn't know didddly-squat except for fear, shame and blame. This is not an extension of his reality show, this is the real world with real world consequences. And he still tries to pass the buck...it's surreal.
Americans have had enough. I like the sound of President Pelosi...
1
The market is worried about something, and I dont think it's the Fed, Donald.
6
This guy Trump and his Republican terrorist enablers are the Keystone Cops of American politics. We have never seen a more incompetent crew of self-serving swamp creatures. I lived through the Cuban Missling Crisis. That was a scary time but nothing like we're living through today. If human civilization makes it to 2020, it will be a miracle. Call it the Trump Armageddon.
2
Trump, Mnuchin and his so called “best people” are nothing less than grifters. They have been credibly accused of manipulating markets for profit, taking what can only be seen as bribes from foreign countries, undermining our national security and carrying a banner of grotesque racial bigotry.
When is Article 25 going to be taken seriously?
3
The Felon in Chief is the primary cause of this; mindless tariff wars; massive unfunded tax cuts; continuing gap between the haves and have nots; zero knowledge of foreign relations all caused by him.
He is alone as he should be, where are men of good character and patriotism who are willing to overthrow this buffoon in a coup d état to return the United States to its rightful place as the leader of the world!
4
Please, NOW can we invoke the 25th?
4
Can Trump please take credit for "Stock Shock"?
1
Well, Mnuchin will be departing shortly as will the chair of the Fed as our ignoramus in charge does not realize it is his actions, the actions of an uninformed fool, exacerbate the economic issues.
Those glowing economic reports, gone. His much bragged about "tax reform cuts". Didn't work out as advertised (with the exception of blowing up the deficit).
Two more years of tweetle dumb. What could go wrong.
What can Trump do now as a distraction from his economic "plan". I know, hold another rally and blame the emails, the server, crooked Hillary, his former "fixer", the dog ate his homework...Somebody will pay the price.
2
Headline should read “trump renews attack on the people of the United States.”
5
Trump will destroy the world economy, but enrich himself and Kushner.
7
Hey President Trump, if you want to find the problem, just take a look in the mirror.
3
Trump destroys everything he touches. Stock market in a death spiral; Govt Shutdown; immigrant child dead at the border; troops in danger because Trump makes rash military decisions. Dems must stand up to Trump and stop him. Ray Sipe
7
Pay attention America, Trump is hellbent the on destroying our Nation!
Republicans, YOU own this disaster of a "president " !!!!
13
Trump's decision whether to fire his pick for a Fed Chair will hinge on what Ann and Newt decide.
It is important to understand there is no legal prohibition against Trump firing his Fed Chair or asking for his resignation. Of course, Trump would then order him to leave a few weeks earlier than the date his resignation was to take effect.
This would no doubt be followed by Trump appointing an Acting Fed Chair to join the growing list of actors in the Executive Branch.
So, once Ann and Newt have made their decision, we will know whether the markets continue to drop a bit, or drop a lot.
2
It is pretty clear while the Country has a number of problems, the biggest one is in the executive office followed by those he has chosen for the Cabinet. Speaking of "no touch," the degree of ineptitude in handling national (not to mention personal) monetary policy Trump and Mnuchin display give everyone reason for concern.
2
Even though my portfolio will drop, i want to see financial ramifications for Trump's policies and for those who have supported him to suffer.
7
Others have said it, but it bears repeating: Trump has had scandal and bankruptcy throughout his life. He will bankrupt America, our economy and our moral fabric. He will bankrupt our democratic ideals, beliefs in the Fourth Estate, our intelligence and law-enforcement people, federal government workers, the list goes on and on. He’s already bankrupted 60 years of strategic international alliances, all children’s lives with a nonsustainable tax cuts for the rich, and again it goes to say how our morality is being down. There is nothing to stop Old No. 45 from careening into Our Town, with apologies to Thornton Wilder.
5
Compare the time, 10:55 AM, on the Trump tweet posted in the article with a plot of today’s indexes, which had recovered a bit but headed straight down right after his tweet. I am unaware of any statement from Chairman Powell at that time.
Cause and effect?
2
Where are the GOP deficit hawks?
Where are the GOPers forcing their President to behave more rationally and calming the chaos?
Where are the GOPers that will put country before party?
Where are the GOPers that will compromise to enact sound and responsible policy?
Nowhere to be found.
This is the GOP winning.
4
2nd amendment may be debatable
25th not so much, and long overdue
How is this not unfit to govern?
2
The last rate hike was very bizarre. To have wall st. down considerably for months and then to raise interest rates was a hit job on the economy. Jobs and consumer confidence is still high. Its like the fed is trying to induce a recession and everyone knows it.
@P McGrath don't conflate the economy and the stock market. they're two different things.
3
The golf anology was a nice touch... Now, if trump could only figure out how to fire the right person at the Fed , it would be back to record highs ! lil steve munchkin already did his part with the phone calls .....sigh ...so tired of winning !
1
Trump tax scam of borrowed money to cause a temporary spike in market , enriching corporations and super-rich in the short-term is over.
The bill is due now and Trump has only one tool in his box of con and deceit , it's called bankruptcy.
5
My Christmas Prayer: Thank you, Lord, for the gifts of this happy season, the greatest of which would be freeing us from the scourge an incompetent US administration is visiting upon our country and the whole world.
3
I’m tired of all this winning with trump .Can we please go back to just being America again.
Trump has an uncanny ability to say the absolute worst thing at the most inopportune time. He is a walking disaster, and the state of the stock market — and our national psyche — prove it.
2
My 401k has lost well over $100k ever since Trump took office!!
It is passed time to start calling for intervention at the White House by Congress and invoking the 25th.
3
The Bob Cratchit family found starved and frozen to death in van covered with MAGA stickers.
4
Here’s a reasonable compromise budget deal:
1. Congress puts in $2.5 billion for the wall but it is contingent on Mexico writing a check for $2.5 billion for the wall. This is how Trump can get $5 billion for his wall and be happy.
2. Mexico should be happy because they were on the hook for paying for the entire wall, and now they only have to pay half.
3. As part of deal, dreamers are granted permanent residency with a path to citizenship, and US issues guest worker visas.
3
@Midwest Moderate Sure--congress approves half of the funding for a ridiculous and ineffective wall; drugs now have to be lifted over the wall. Sales of drones go through the roof.
Mexico decides that, even though they never wanted a wall in the first place (and even though more people are moving back to Mexico than away), they're making so much money selling drones, they want more wall.
Dreamers that grew up in the US, got US educations, and never learned to speak Spanish, now want to move to Mexico, but they can't. There's a wall.
Meanwhile, we still get all the illegal immigrants we need the old fashioned way. Through the airport.
3
except Mexico is not on the hook to pay anything
3
It seems almost reasonable, however when he had a the Senate and the House, they didn’t see fit to fund this boondoggle. Therefore, I don’t see where the Dems should deal with funding his ridiculous promise.
1
History will record trump ended the Obama Recovery on Christmas Eve
58
Trump never accepts responsibility for anything. Bigger loser there never was.
38
“Trump Renews Attack on Fed as Mnuchin Tries to Calm Markets”
Shouldn’t that be:
“Trump Renews Attack on Fed as Mnuchin Fails to Calm Markets”?
26
To paraphrase Einstein, "I know not with what financial instruments Great Depression III will be waged, but I know that Great Depression IV will be waged with shells and tinned pet food."
1
@Kenneth Miles: I know rich folks who believe that bullets will the currency of the post-Apocalypse. That's why nobody raises an eyebrow when somebody lays out $2500 for .223 ammunition made for AR-15s.
2
trump voters sure were smart to know that an elitist--born into wealth, with 4 bankruptcies, 3 failed marriages, a scam "university," a reputation for cheating workers out of their pay, blacklisted by banks because he defaulted on so many debts--would know how to guide the world's largest economy through thick and thin.
108
@Gustav Aschenbach
Trump only looked good on TV because The Apprentice had writers and editors. On his own he is a repeat mega failure. Impeachment can't come soon enough.
15
@Gustav Aschenbach well said.
9
It's a MAGA Christmas. Guy is costing me and you money. Right now it's only the gains from prior months but for some it's the principal, the money they earned with the sweat of their brow. Thanks Don.
16
Trump knows that his tweets move the stock market. I doubt he can resist shorting... or giving the info to whoever holds the mortgage on his soul.
11
Paul Krugman, if you are out there, maybe you were just two years too early with your infamous Election Night prediction of a stock market disaster with Trump's election, the one that you famously apologized for and have been mercilessly criticized for by Trump supporters ever since.
It's now time to walk back your walkback!
14
Where are the normal Republican electeds who are equally disgusted or worse by their putative leader?
We are waiting to hear from you. Put country before party and we will admire and thank you. You can be the nail in this needed coffin.
Or are there no more normal Republicans?
15
Mnuchin in Mexico? "Vacation"? Must be negotiating with Mexicans to pay for the wall.
12
I am sure Secretary Mnuchin is down in Mexico negotiating the price of a wall. Maybe taking advantage of some cheap hotel deals made possible by a Mexico's minimum wage of $4.25 / hour.
Don't forget your sun screen Secretary!
Oh, did you get the memo? The US government is shut down? No, really, it is.......
8
Xmas dinner tomorrow with the Trumper BIL ought to be Ugly..
5
Delusional Donald is the POTUS of a reality tv presidency.
9
The world will soon amass at the palace gate to throw tomato's and rotten eggs at Trump. I expect to see Netanyahu, Macron, and every other leader standing shoulder to shoulder screaming, you're killing my portfolio. He messing with rich people money is more dangerous that fire eating and hand grenade juggling.
4
That Trump “only problem” tweet? Dumbest in a long time and there have been plenty. It illuminates with a harsh glare his ignorance and zero cognitive ideas as to how the Fed and the economy functions. In fact, the man is hardly functioning himself and we have a rudderless ship of state.
10
Obviously all the adults have left the room and there is no one there to take the child's phone away and put him in a corner for his temper tantrum and shutdown!!!! McConnell, you too have yet to be given what you deserve from the voting public!!!
13
Where's Anonymous? You know, the babysitting committee.
1
I am sick and tired of this imbecile's tweets, his ignorance, his blaming everyone else for his mistakes, and the daily anxiety he puts this country through. He doesn't have a clue how to run a country.
I'm just tired of this totally inept buffoon. Please, Congress, get rid of him before he further destroys our country.
24
The Liar never takes the blame for anything. He is in fact a loser and a fraud.
Despite that, Happy Holidays to all.
11
Thanks neighbor!
2
Person of Interst #1 is acting like a drunk. Come Jan. 1 He and his sidekick can both resign at once in exchange for pardons from President Pelosi to end the nightmare.
11
haha Trump stews in White House while Mnuchin frolicks in Cabo! Steve sure knows how to live it up! maybe he paid for his trip with a sheet of dollars hot off the Treasury printing press like the ones his wife held up for the cameras last year.
8
Trump needs to stop Mnuchin the Fed.
1
Dishonest, dishonorable, ripping off students & contractors, predatory towards women...
Pay taxes to support the public good? Not me! Real I-Me-Mine take what you can kind of guy.
The markets loved him. A good ol' stampede of pigs to the sty... FYI: We all end up paying.
May the spirit of Christmas prevail in the end.
3
Attention democrats and republicans... impeach this President wannabe. Now.
11
Few thoughts on the situation:
If markets hate uncertainty, why did they rally 50% when President Trump was elected?
The S&P 500 more than quadrupaled itself since 2009, hardly pausing for any substantial correction, so what we see now is a return to more sensible levels.
Candidate Trump was correct at the time in criticizing Ms. Janet Yellen for leaving interest rates at zero for too long.
Mr. Powell's latest decision to raise rates shows confidence in the US economy as well as independence from political and markets pressure which is a positive thing.
The orderly descent (every price being traded) shows us that the move is real and not a momentary panic.
The biggest constrain on the financial markets which does not seem to disappear but keep increasing is the accumulated debt here and around the world, and no one shows any urge to do rectify it.
@HR
Orderly descent? Really?
Talk to the Republicans and the Grifter in Chief about the exploding accumulated debt.
4
Valid points. # 1 is mostly a result of short term tax cuts and money from overseas for stock buybacks. The rest shows what an ignorant and incompetent leader Trump is. He should be providing reassurance, not lunatic tweets.
3
@HR: There is enough wealth concentrated in the US interlocked directorship to pull off a pump and dump.
1
The ten year Obama Recovery is over. Now we are in the Trump Recession. Thanks Republicans once again.
113
Trump wants to tell the markets what to do like he wants to tell everything and everybody else what to do?
17
In all my years there are a couple of things I have come to expect of the stock market. Few dramatic things (either up or down) happen on (1) Fridays,especially in summer or around holidays or (2) the day before a major holiday, like Christmas Eve. Well I have seen those expectations shattered twice in the last few days -- last Friday and today. To me that forebodes something really really bad.
18
This is certain, whomever has prior knowledge of Trump's tweets has access to information that Hedge funds would pay a kings (or Presidents) ransom for.
Trump seeking to place blame on Jerome Powell for the Trump Market Meltdown reminds me of those of the hard right that tried to blame Prince Sihanouk for the rise of Pol Pot. Sihanouk retorted " Time will inevitably uncover dishonestly and lies; history has no place for them."
And thus history will in due time reveal all the sordid dealings and basic ineptness of the Trump regime.
14
Where are the deficit hawks that havent made a peep since Trump was elected ? Clinton was smart enough to pay off the national debt when markets were good, but Trump (like Bush) wasted his oppurtunity. Having this much national debt, spurred by tax cuts for the wealthy, will make any financial downturn worse.
22
@Kevin K. The Clinton economy achieved a current-account surplus, which had only just begun to reduce the federal debt, when along came Bush 43 and his War on Terror.
2
@Kevin K.
Also, where are the Conservative inflation hawks now? I thought their whole Austrian-school obsession was reining in inflation. And first they implement an stimulus when the economy was expanding (a no-no to prevent inflation), and now complain about the Fed raising rates to rein in inflation.
The problem is that what they actually are is Marxists: 'Those are my principles, and if you don't like them... well, I have others' (Groucho Marx)
2
If you have a thorn in your foot, you could treat the symptoms -redness, swelling, pain, and infection. The problem is the thorn. Pull out the thorn and symptoms will resolve.
Our current federal government is dysfunctional. There is a big turn over of the President's cabinet and advisors. Those are the symptoms. The problem is the thorn - DJT.
12
Trump, the arsonist who shows up to fight the fire.
19
The time is past due that all able Americans march on Washington and shake the gates around The White House off their hinges.
8
Guarantee that Trump and his "friends" are shorting the market and making a mint at our expense.
10
Not that clever.
It is up to Congress to tell this fool to stop his interventions. If I did this the SEC would swoop down on me in a second. But because a president does it, no problem? His wealthy friends are taking a bath down in Florida and AZ right now- not the really rich but the working rich invested in the market. Now all we need is Putin or Xi dumping some bonds and we are helpless.
6
Let's not beat around the bush. Maybe the answer for the markets, as with every other component of our reality as a country, is to remove trump from office. No good will come from keeping an incompetent, erratic clown in the White House.
9
Trump is doing his best to make America as bad as it can get. Thanks Trump and Merry Christmas.
5
Time for impeachment proceedings to begin. Trump is by far the stupidest and most corrupt President we have ever had. I hope everyone looks at their IRA or 401k year end balances and see what he has done to their retirement savings. And the republicans want to divert social security contributions to private investment accounts. This shows how dangerous that is to future retirees.
23
Maybe it is also a reminder that having your retirement savings at the mercy of Wall Street is not such a good idea. Workers are tired of being blamed for not saving enough for retirement when they aren't really in control of the savings mechanism.
10
Why can’t Steven Mnuchin take a vacation in the U.S.? If he needs sunshine, go to Puerto Rico or some other place in the Caribbean that is part of the U.S. Hawaii sounds good. Even better, stay home and play board games by the fireplace. Strange guy.
6
Hopefully when Trump’s donors and country club buds make billions short selling their stocks that the Trump money-terrorists (advisors) were tipped off about, they throw the children of America a few bread crumbs.
3
Nothing like having a "really, really smart" "stable genius" in the White House.
I bet Wharton wishes they could rescind his degree.
8
How about coming back to Washington rather than calling in from Cabo.
6
Would have been a normal correction but Trump, the King of Bankruptcy, took it personally and panicked.
Having experienced bankruptcy six times, he thinks it's happening again, that the country is headed for a Depression and his base will turn on him. Then he'll be completely alone with no one propping up his delusions.
The irony is that his panicky tweets are panicking the markets. Trump is like a CEO screaming that his company is a disaster - but he's not to blame.
380
@Fourteen
I don’t see any signs of panic. This is what he does.
5
@Fourteen: Trump knows only that, if he can make enough of a stench or eyesore, people will abandon their property to him.
9
@Fourteen. He's such a nitwit, maybe he thinks he will get a huge bonus after he tanks the economy just like CEOs get big bonuses after they have trashed their companies.
19
As always, DT has to have a scape goat when things go south. This time it is the Fed Chairman. He is unable to accept, much less admit, to his errors. The market is not "tanking" because the Fed raised rates. How about a trade war, tariffs, foreign policy errors and withdrawal from international agreements? The stock market does not operate in a vacuum. Uncertainty created by DT is the cause. Little burps in the market are part of business, but DT heaps on more and more uncertainty. The latest being his unilateral withdrawal of military forces from the middle east against all professional advice. The market has indigestion.
20
@impegleg
Yes Trump always finds a way to blame someone else and many others always find a way to blame Trump. There is enough blame to go around this time.
@impegleg: Who can retain confidence in the unyielding continuation of a fraud that was evident in its first five minutes of presentation?
1
My 401k is now a 301k!
15
Congratulations to the markets for STILL being four thousand points higher on the NYSE Industrial Average than it was on Election Day 2016.
I figure today's numbers are double where they'd be if angry Hillary Clinton had somehow stolen the White House using nonresident votes in half-a-dozen states.
How do you know these claims?
13
@L'osservatore Nope, "angry Hillary Clinton" won by 3 million American votes, not "nonresidents." She would have served the interests of the United States, as she did when First Lady, Senator and Secretary of State. Plenty of real-life evidence to prove that.
The traitor that you call your "president," in contrast, won, appropriately, the slave-era Electoral College by less than 70k votes with the help of Julian Assange, Vladimir Putin, thousands of Russian trolls, and probably the Saudis, and he works in his own interests first, Russian interests a close second. Plenty of real-life evidence to prove that, and plenty of investigations uncovering even more.
7
Keep deflecting to Hillary
2
Mnuchin agreed to have his name associated with Trump’s. Several years ago.
This means that he is not very smart and not someone of any integrity.
It will all come to the surface more visibly in the months and 2 years ahead.
9
The real test of leadership is when things are going astray. Now is the time to send a well thought out coordinated message to the nation. Instead, we have exactly the opposite, a complete lack of coordination, random tweets, ill thought out meetings with CEOs of financial institutions - all sending a loud and clear message, "you cannot count on anything in the next few days or weeks. Is this how you MAGA?
13
Good thing you have that great checks and balances Congress going for you. Time for it to kick in.
12
We have lost our confidence in Trump to do anything productive. Taking swipes at Powell, a Trump nominee, and running his mouth don't work anymore.
In his State of the Union address Trump touted the performance of the stock market since the inception of his presidency. Beginning a day or two later the market started its steady decent to where we are today. The next State of the Union address is in about a month. He'll have some 'splainin' to do.
8
How about the idea that this is an intentional sowing of chaos, that it's part of fake-POTUS's plan to consolidate control and become the authoritarian kleptocrat autocrat he so highly believes himself to be. Then they can swoop in and grab the spoils - the Saudis, the Russians, the Turks, the whole lot of them and rebuild the global economy to their liking. Sounds crazy, I know, but maybe not really.
4
He's not that clever.
4
Too bad the United States Constitution does not have the provision of a No Confidence Vote like many other civilized countries.
We could sure use it in these ominous times.
16
Considering that we have had a wack job for President for close to two years (indeed, not just a wack job, but a wack job who works for V. Putin), it's amazing that it took the markets this long to wake up and realize what most of us already knew all too well ('duh'): that there is a huge amount of macro-risk in the environment.
14
You nailed it! Markets are not as efficient as we assume... (I am a published economist...)
Munchkin and the Wizard Of Flaws.
Sad.
8
Trump's two biggest weaknesses are most likely what he uses to stay out of jail after he's indicted and convicted of tax and election campaign fraud.
The first? The man is an idiot, so he can claim he knew nothing about his fraud and will blame it on others.
The second, and perhaps most important, is that the man is illiterate and can't write a coherent sentence containing words of more than two syllables. I'm serious. The Mattis resignation letters support this. The only way he knows what has transpired during his awaking hours is what he is told on Fox "News." Trump will claim that because he can't read, he could not possibly be guilty of falsifying documents that include his signature.
The big question is who will he blame when he is in court. Of course he could always claim innocence by claiming to be afflicted with affluenza and having a terrible childhood during which he will claim he was pyschologically abused by his father.
4
This article is, and should be, very disturbing to all Americans. From the critical comments of respected financial experts therein it appears that Mnuchin's lack of expertise in calming the markets is almost as shallow and counterproductive as his boss's. The ineptitude that keeps oozing from this Administration and causing real harm to the country is getting unbearable, yet gutless Republicans continue to behave like proverbial ostriches.
6
The self proclaimed genius President has given us global trade wars, a government shutdown and now is defaming the Federal Reserve chairman. Gee, I wonder why we have experienced the worst December since the Great Depression (the big one in the '30's). Any more genius type moves and we will give back all the economic gains we made under 44.....the last sane POTUS.
6
Every time this man opens his mouth, my retirement recedes further into the distant future.
9
If everyone dropped Trump from their Twitter account, the world would be a better place.
8
I don't recall Reagan or Clinton complaining every time the Fed raised rates during their tenure.
5
I’m starting to get tired from all this “winning.”
4
Twenty-fifth Amendment
4
Is the president able to find the comments sections of the media on the internet? Someone could help him access this information-instead of telling him that the media are angry that he's 'doing so well'.
3
@PSmith
Except he seems unable to read anything over two syllables
3
Ah yes, it’s Christmas Eve and Trump’s Blame Game is his gift to the nation!
“Silent Night , Unholy Night, All is Come, All is Go”!
1
Has he never heard the saying that "if one jerk ruins your day you've had bad luck but if everyone you run into is a jerk then actually you're the jerk" or does he just not comprehend it?
To be fair, the rendering of the saying that I provided is cumbersome and maybe it's not that common an expression. But I can tell you from personal experience that it's pretty accurate.
7
Trump wants Powell to resign...the relentless tweets are aimed at getting Powell out one way or the other.....
Now it's Powell AND Mnuchin who are to blame.
Sheeeeesh.
2
The dumpster fire of an administration continues to careen around the curves in their clown car. When will they take the plunge into the abyss? Republicans remain complicit so they can get more Russian money for their campaigns. Mitch McConnell took $3.5M wonder what the rest have taken?
https://mavenroundtable.io/theintellectualist/news/mcconnell-received-3-5m-in-campaign-donations-from-russian-oligarch-linked-firm-93UjehU6aUCtejJRBFezCw/
3
Steve Mnuchin.
Another one of Trump's "best people".
hey Trump voters remember that thing about him going bankrupt six times - wasn't by accident... He's a horrible horrible manager.
7
The realization that it is not the “elected” President that is calling the shots in Washington, but that two radio talk show hosts, Rush and Ann, are the ones in charge is surely rattling the markets. We don’t have an open functioning government because this spineless coward in the Oval Office can’t stand up to them, let alone Putin and Erdogan.
8
Your lead photo showing Mnuchin somewhere on the White House grounds is clearly misleading if he is, in fact, directing this chaos from a foreign country.
5
This is what happens when you have incompetent businessmen (with little intelligence) trying to run a country instead of a business. Then the "incredibly stable genius" gets on twitter to blame everyone but himself & his rhetoric & the efforts of his incompetents that are left in this outhouse of white house.
Who is Fox blaming this morning after trump's tweets?
5
Merry Christmas to everyone who celebrates it.
My heart especially goes out to the money mongers who elected their favorite “rich”idiot in 2016. I hope they lose as much as possible as they have gambled on our democracy. Get your soul back, and rejoice you are still alive.
4
Mnuchin doing shots of tequila in Mexico and the Fraud of a President golfing in Florida.
Market tanks, fools play, the rest of us pay for it.
2
A game of fools:
- Munchin is far far away golfing in Cabos.
- tRump's alone in the WH, dreaming of golfing at Mar-a-Loco.
- Day by day the cost of golf clubs rise.
- trump "accidentally" shutdown all Federal golf courses.
Who knew presidenting was harder than golfing?
4
I see a lot of negative comments about Sec. Mnuchin. Come on, give the man some credit. He has decided to spend Christmas on harm's way, fighting MS-13 and all those rapists and drug dealers in Mexico. He is probably putting his life on the line to personally stop that caravan of dangerous moms and terrorist children at this very moment.
9
Mnuchin trying to calm the public! Who would believe ANYTHING coming out of this administration. Anyone associated with Trump is tainted by his stench of lies, deceitful actions and misdeeds.
1
In sticking to Trump's golf analogy: the stable genius is like a golfer who gets electrocuted by lightning because he ignores the warning horn.
5
The markets like stability. It is not reassuring to investors to have the White House exhibiting an unstable foreign and domestic policy. Not sure there are the people or entities at this time that are strong enough to bring it under control.
12
Trump owns it along with the shutdown. We now have a bear market and the worst December since the 1930's. Thanks Trump.
62
Trump’s attack on the Fed seems perfectly timed to give some short-sellers a fabulous Christmas gift.
When all this is finally over, we’ll probably discover that a bunch of high-profile investors (read: donors) close to the President made billions by shorting the market in December 2018.
Given the depth of corruption and cronyism in this administration, I don’t believe for a minute that Trump’s puppet-masters would let him destabilize the markets without having a plan to profit from it.
92
Maybe it is he who is sorting the market.
3
@Andy: A year-end slump like this will take a big slice out of retiree's mandatory IRA distributions next year, too.
Manufacturing news to front-run is the most lucrative scam in the world.
9
So, making money for the sake of making money isn't working. Consider:
The tax breaks for corporations weren't used to better corporate production or to increase workers' wages -- the Boards of Directors simply voted to buy back corporate stock. Stock prices went up. And the CEOs/shareholders smiled.
Then we have those abominable deregulations, designed to free corporations from rules made to ensure a better quality of life for us lesser mortals. Up went stock prices. The CEOs/ shareholders smiled.
Then came the move to levy tariffs against countries to protect US corporations. Many protected sectors of the market went up. Their CEOs/shareholders smiled.
But now it's all unraveling. CEOs/shareholders are not smiling. Their precious individuals (formerly known as corporations) are hurting.
Such "individuals' have abdicated their collective purpose -- to serve those who buy their goods and services. They've forsaken another worthy purpose-- to pay employees sufficient wages to make them good customers.
This abdicated responsibility can be resuscitated. Much service is needed: Our infrastructure is a mess. Healthcare is overpriced. The market for opioid drugs is out of control.
Wall Street's response to all this is a mirror held before our eyes to show us what's wrong with our country. Can we, will we heed her wake-up call and collectively do the right thing? I pray God we will, so that next year's Christmas can be far merrier than this one's.
12
@just a sophomore: Small shareholders who believe they're not being squeezed out are dupes.
3
@just a sophomore
From the fingers and minds of babes (relative to my age...probably = your grandfather) spring eternal truths and insightful observations.
Thanks for enunciating my concerns and those concerns of millions of sensible, rational adults who were, are, and are going to be successful long-term investors and culturally mature people.
As an investment advisor, I find Trumpster and his cohort of mindless sycophants so deficient in common sense, insight, self-discipline, reverence for facts (not opinions or fantasies) and self-denial that I expect further declines in the security markets and our nation's general economic, social-culture, and military affairs both domestic and international.
Short of personal attacks (which I decline to make nor do I expect would make a difference), I cannot find any complimentary words or behaviors to applaud the Executive Branch.
Russia, China, and the "traditional" enemies of the USA must revel in the successful co-opting of the POTUS. He is their greatest asset and defender as he simultaneously tears apart our nation and the network of allies and of mutually beneficial trade and military connections the USA has patiently built since 1945.
Until Trump leaves office, I see no reason for any optimism. Congress and especially Republicans refuse to curb his juvenile behavior.
What to do .... what to do?
And, do it goes. AEG
4
Maybe, just maybe, this will get my white collar Republican friends to stop supporting Trump. Mutual fund companies mail their quarterly report at the end of this week, and many people will NOT want to open that report.
18
Unless Andy above is right, which I believe he is.
2
There is absolutely nothing wrong with monetary policy, the sole responsibility of the Fed. There is absolutely no coherent fiscal policy, the sole responsibility of the Republican Congress and the Administration. Neither Mr. Trump nor his financial advisors, formal and informal, appreciate in the slightest the necessity for both sets of policies to be consistent, coherent and coordinated. Given the chaotic approach of Republicans to fiscal policy, the Fed is all that stands between the country and financial chaos.
14
@T.E.Duggan: Most academic economists have not yet conceded that the "dual mandate" to the Fed is self-contradictory. Monetary policy does not maintain a stable value of currency by manipulating interest rates to adjust employment levels.
1
@T.E.Duggan Yes, T.E. Duggan, I am reminded when then Fed Chairman Volker saved our nation and our culture by doing what needed to be done from Aug '79 to Aug ' 87.
Thank goodness the Fed and especially its Chairman is largely beyond the grasp of the POTUS and petty political hacks.
I can only trust that Mr. Powell will do what needs to be done and resist the childish but extremely rancorous and tiresome tirades from the Executive branch of the Federal gov't.
1
"“It signaled a sense of panic and anxiety that didn’t need to be there,” said Brian Gardner, an analyst..."
Part of the panic and anxiety may also be the recognition that the lightweights now in charge -- the Mick and the Munchkin -- are intrinsically incapable of responding to any kind of serious crisis.
And Trump's attempted soothing reference to a golf metaphor, designed to comfort the country club mindset, seems unduly optimistic. His narcissistic "powerful golfer who can’t score" is not on the smooth green close to the cup but deeply mired in the bunker. It will take more than puttering to get him out.
9
45 is acting like Erdogan, wanting complete control over the supposedly independent central bank and throwing a fit when the central bank acts independently. Yes, there is nothing the Toddler in Chief likes more than acting like a despot.
15
I am glad I took that big tax cut I got and invested it in the stock market
6
Resign Trump! The market will make record highs.
18
Was Mnuchin calling the banks to reassure them that everything is fine even with the sealed indictment which everyone is guessing is UBS.
6
Twitter CEO Jack Dorsey and the Twitter Board of Directors are complicit in the madness now wreaking havoc across the globe. Cut off Trump’s Twitter accounts! He’s an addict with extraordinary power who is causing measurable harm with his insane lies, bullying and delusional rants. He’s the man falsely screaming “Fire!” in a crowded theater, and our nation and the world are the theater. Shut him up, Twitter. As a corporation, you may lawfully do this.
17
The 3 Stooges are running the economy- Trump, Mnuchin, and Kudlow. What could possibly go wrong?
15
It is beyond any doubt that we are dealing with a child-president who is living in an alternate reality, completely oblivious to the fact that it is HE who has created this chaos and will soon sink the country.... if Congress does not act immediately and firmly to get rid of him....
13
Realistically, the only problem that the American economy faces today is the almost unbelievable arrogance and incompetence of Donald J. Trump. The economy was firing on all cylinders before The Great American Blowhard came into office. Now, thanks to his idiotic tariffs and trade war posturing, investment is fading, prices are climbing steadily and manufacturers are openly talking about factory closures and mass layoffs. The sooner Trump leaves office - by his own choice or otherwise - the better things will be for our country.
14
The 1% are experiencing knee trembling. When does that trickle down to their Republican lackeys in Congress?
7
Trump only cares about his "base," at best only 30% of voters. He thinks he needs them to get reelected, so he'll do anything to please them, including playing directly to their xenophobia.
He wants to keep his campaign promise. But that promise included having Mexico pay for the wall. Let's see how real his "Art of the Deal" fog really is.
4
Same story history repeating itself, years of democratic presidency in the White House, stable economic growth for years after reckless fiscal decisions from a republican government and again in 2017 the republicans gave a shot of steroids in the economy that only last for a while and now it’s hangover for the rest of us .
It has been decades now that the republicans have showed no concerns for the long term health of this country, doing only what was needed to win the next elections and blaming the democrats for slow recoveries after they left the economy in a mess.
It’s not the economy that is stupid, people are for not understanding that .
11
The day Trump was elected a market crash was predicted. Instead, a Trump rally began taking the market to record levels. At its peak, market gains reached a wildly optimistic 30% despite a 3% growth rate in the economy.
Despite the recent market crash, levels remain 10% higher than when Trump was elected, a solid gain in line with the economic growth rate. The economy is still growing, and unemployment remains at record lows. Interest rate increases reflect a reasonable confidence in the economy.
Trump has been wildly unpredictable for two years but the market is still in a solid growth position since November 2016. The market cares about corporate profits much more than Trump’s personality. Corporate tax rates are at recent lows and profits are solid. Nobody is talking about a recession.
The market mirrors the economy right now. If you think you know it will keep crashing, you can get rich quick. But after all the losses, a rebound would not be a surprise. Myself, I have invested against Trump for two years. I have lost 10%. I am considering reversing my holdings. Historically, when the market falls while the economy is growing, it’s a good time to bet on a market rebound. You invest in the dips in the market and that’s where we are.
3
@michjas
Dream on.
The market closed down today another 650 points.
Headline in the Washington Post:
"Markets stage one of worst Christmas Eves ever, closing down more than 600 points as Trump blames Fed for stock losses in a tweet"
https://www.washingtonpost.com/business/economy/us-markets-continue-sharp-sell-off-ignoring-efforts-by-the-trump-administration-to-stabilize-stock-prices/2018/12/24/59d4eae8-078e-11e9-85b6-41c0fe0c5b8f_story.html?utm_term=.35ac378f5848
3
I am not sure about this - but is it possible that stocks are sliding because the ownership economy is finally making small concessions to labor?
Stocks are supposedly valued on their ability to turn a profit for their owners. The economy is, supposedly, finally strong enough to encourage a little competition for workers' time and ability. Wages rose a little. Also, we finally elected Democrats to the House, which probably signals an impending correction to the feeding frenzy.
Or, it could also be due to the fact that we have a totally unpredictable imbecile in the White House. The trade wars and ceding of influence around the world doesn't bode well for the medium term.
I'm not really used to seeing Wall Street sputter before the economy at large does.
4
This is what Republicans always do! Every single time they destroy the economy. Trump has managed to set a record this time though.
27
@Mons Those with wealth profit off a destroyed economy as bargains are everywhere. It's everyone else that suffers. It's no accident.
9
All this crisis is self inflicted. It’s a miracle that it took so long .
Let’s face it. This constitutional republican monarchy that we created apparently has a weakness - Inability to control the king.
18
@Agnieszka Gill Or, by tanking the market now it will rally just before the 2020 election and he'll take total credit for "saving" it from the Fed. His supporters will believe him.
5
No economy, no nation with an established talent for success and innovation in business can survive a whiny, ignorant infant in the White House who daily punches holes in the hull of an already sinking ship.
The question is, who has the power to stop this? Certainly not the Trump Base as they are thrilled that the “Wall Street elite” are losing money. Certainly not a Senate mired in moral/political turpitude. There’s only one group that has this power.
As financial losses accelerate and threaten the gilt lives of our stolen-wealth ‘masters of the universe’, how badly this all ends for all of America will now be determined exclusively on what the oligarchs dictate to their Republican pawns in the Senate. The only chance of avoiding a destructive recession or a real Depression, is for the 1% to demand that congress gets back to its stated purpose in life -- making money for its “donors” by throwing out the Orange Baby. No Democrat-majority House or Mueller revelations can accomplish what a few Billionaires can do with a single phone call.
Nothing in America is more important than money. We talk about ideals, justice, and blather on about democracy, but everything worships at the altar of the Almighty Dollar; the only power left in the United States to change course and stop this madness.
Once the toddler is back in his golden crib on Fifth Avenue, we may then have a chance to rebuild a just and equitable America. Probably not, but at least, we won't be insolvent.
9
If you expect Trump to do anything but try to undermine any person or institution to "solve" a problem that might tarnish him, you can forget it. He's telling the markets "don't trust the Fed, they don't know what they are doing". Setting the stage for Trump To the Rescue by gutting the board. Of course, it wouldn't stand up in court, but it'll have stock investors heading for the hills.
Oh, and that shutdown he said he'd own. He's not showing much pride of ownership, is he?
8
the “only problem our economy has is the Fed” ...
Yes! It is hard to imagine how Trump's Trade Wars and Trump's Shutdown, his mercurial and backwards foreign policy and the constant exodus of leadership from his administration is not producing a booming stock market.
So, when does someone pull the plug on this clown? How many things will he be allowed to break before he is stopped?
11
Dude makes Scrooge and the Grinch look magnanimous. He has ruined Christmas for tens of thousands of Federal workers, and now anyone who has invested in the stock market. Way to go, "stable genius."
12
@Spucky50 And you can include in "anyone who has invested in the stock market" millions of retirees who rely on 40l(k) accounts for retirement income.
3
In the (paraphrased) words of FDR, “The only thing we have to fear is Trump himself”.
11
The global economy is reacting to Trump’s mismanagement of trade relations, mismanagement of US security and alliances. Further blaming others won’t cure the problem.
3
For a guy who knows everything about everything, just ask him, how did he not see this coming? The SS Trump continues to take on water and list dangerously to the right. Just need to stay afloat so we can right the ship in 2020.
One term.
5
45 was right: I am tired of so much winning.
5
The fool only exacerbates the situation he has created with his thoughtless tweets and lack of knowledge of how international trade and finance works. Smartest man in the room? Not by a long shot.
7
Bullies always blame others for adverse events and outcomes.
12
I bet those furloughed workers could afford to go to Cabo during their shutdown break.
4
When your boss stirs the pot 24/7 just for fun, Mr. Mnuchin, nobody with a pulse believes he's doing what Presidents are supposed to do.
7
@Mike Mnuchin is golfing in Cabo with Secret Service protection and a trophy wife. What possible interest in the rest of us would cause him even a moment's hesitation?
1
Market blame provided by a weak golfer who can't putt either.
3
Watch when Trump gets angry that Mnuchin didn't do his job in reassuring the markets, and Trump fires him. Wouldn't that be fun?
3
Merry Christmas Trumpsters: A tanking market, a government shut down, coal in your stockings, our nation's standing diminished, our reputation shredded, no peace on earth and certainly no goodwill towards our fellow man (well at least those that need it most and don't look like you). The fruits of your right wing media fueled and manipulated resentment and spite are serving the nation's interests so very, very well. Blessed are the willful ignorant. Black is white; war is peace; "truth is not truth"; winning is losing. We're turning all those losers away from our back door and separating them from their child for having the temerity to seek safe shelter and a better life. Enjoy this holiest of nights satisfied with your well rewarded narrow self righteousness. God bless you.
9
Another thought - watch who gets rich on the crash and recovery. Tin foil hattitude says it's not gonna be your average Joe. Some hedge fund tycoon is making billions right now.
7
Didn't Trump appoint Fed Chairman Powell and doesn't Trump anoint only the best people for jobs? Reminds me of "What miserable drones and traitors have I nourished and promoted in my household, who let their lord be treated with such shameful contempt by a low-born clerk!"
6
There's no way that a quarter-percent increase in Fed rates would cause such a market reaction, especially with indications that further rate increases will occur more slowly. Between trade war tariffs, Mnuchin's ham-fisted attempt to calm the markets, renewed exposure to high-risk bank instruments (thanks in large part to a defanged Consumer Finance Protection Bureau), and the sheer political uncertainties caused by Trump's feverish impulsiveness, there is ample reason for the market's slide.
If only Trump would issue an anodyne statement affirming the value of our alliances and then wait a month or two before next swinging his political wrecking ball, he could see for himself the markets stabilize and begin to recover. At least to the extent that a misconceived and mismanaged Brexit will allow it to. (Hey: something that's not the president's responsibility!)
But all that assumes a president capable of learning, and one who can learn to trust factual evidence more than the microbiota in his own capacious gut.
4
@Peter Czipott
You assume two things:
1. That people are making all these ''sell'' decisions, and that
2. People don't respond to intentional efforts to frighten them.
Is it true that some socialist Democrat oligarchs are intentionally giving up serious profits on securities in an effort to cause share prices to tumble?
Maybe the markets are anticipating the chaos that would happen if the 25th Amendment was invoked or if a group of senior GOP figures went to Trump and encouraged him to resign.
9
He needs to go! Please make him go! He is mentally unstable!
2
The market abhors instability-that is all Trump has provided.The market knows that no one wins Trade Wars- The market is jittery when the Government is shut down- the market listens to the Federal Reserve and not to politicians- the market is fearful when United States traditional alliances are at risk-the market reacts badly to a chief executive who cannot function with other branches of government.The market is reacting to you, Mr.Trump, as you further distance yourself from the rule of law.Ask not for whom to blame a falling market- it falls because of you!
72
It feels as if 2018 will go down as the last year of the great Amercian democracy.
Donald has pushed out or lost critical members of his administration one by one, surrounding himself with interim sycophants, with a Republican congress suffering legislative and patriotic paralysis attributed to there no going back on giving Trump the reigns of their party.
Expecting this trend of placing interim sycophants around Donald, demonizing and pushing out those who threaten Donald (Fed Chair) to become the new normal, it appears a totalitarian, white nationalist coup may finally take hold in 2019.
The Democrats in the House may be this country’s only hope.
15
@e Coli
The last year of great American democracy was a few years back.
4
@e Coli
Your description of the GOP as suffering from patriotic paralysis is spot on.
1