Trump Watches Stocks Plunge & Erupts Into Multi-Tweet Meltdown

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There is a bed of uncertainty around the country’s economy, and the stock market does not like that. This is especially true when the market loses 600 and 700 points on days then gains 300 to 400 points. Those wild swings make businesses and the markets nervous and generally predict a recession. This is what Trump plans to do about it.

What has been going on is that people do not trust this very unstable stock market, so they have taken their money out of stocks and put it into bonds. The way bonds usually work in a healthy economy has been that the longer a person’s money was in them, the higher the interest rate they could get. The less time a person owned a bond, the lower the rate of interest.

When too many people buy bonds, all of a sudden the time-interest rate relationship flips. The less time people are in bonds the more they make, and the longer they are in the lower the interest rate. That is a very strong predictor of a recession starting within 10 months. Trump did not learn that simple basic economic truth in high school or in college, so what was his solution? He wanted to blame the Federal Reserve, because after all, nothing was ever his fault:

“The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World.” Mark Grant @Varneyco Correct! The Federal Reserve acted far too quickly, and now is very, very late. Too bad, so much to gain on the upside!’

Trump has not understood tariffs let alone the economy. Years ago, the president decided tariffs were the solution to all of the nation’s problems. In fact, those on the importing end of a purchase were the ones paying what amounted to an additional tax:

“So far, you’ve had Tariffs imposed on 300 Billion Dollars worth of Chinese products, but you can’t tell me that it has hurt our economy…& it really hasn’t led to any kind of serious rise in prices at the consumer level.” @Varneyco @FoxBusiness And we are taking in $Billions!’

The leader of the free world has been standing alone in the White House shouting out his failed economic hype. A good economy let many voters forgive Trump’s ethical and moral flaws. Yet by the 2020 presidential elections and given this scenerio, the country could be in the middle of a recession:

‘Tremendous amounts of money pouring into the United States. People want safety!’

Then, Trump’s people found him a quote talking about a “mid cycle (sic) adjustment.” The problem was that the country has had the longest cycle without a recession since the 1990s. The mid-cycle was long ago:

The Great Charles Payne @cvpayne correctly stated that Fed Chair Jay Powell made TWO enormous mistakes. 1. When he said “mid cycle adjustment.” 2. We’re data dependent. “He did not do the right thing.” I agree (to put it mildly!). @Varneyco’

Twitter land caught fire. Take a look at some of our favorite responses below:
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