Posted on 12/20/2018 9:00:33 AM PST by bitt
Since October The Fed has single-handedly dismantled the US economy. The Trump tax cuts at year end 2017 set the economy on fire. The US stock markets set numerous records. So the Fed had to step in and kill the economy or, God forbid, he would get re-elected in 2020!
The Fed announced on Wednesday afternoon that they will increase rates and will also increase rates next year. The Dow immediately dropped 720 points in 10 minutes. The DOW was down at one point by 894 points!
The Fed is clearly a political machine not working in the interest of President Trump or the American people.
As a result of Fed policies Americans are being bound with massive interest payments on Obama debt for years to come while watching their 401k’s dissolve into thin air.
The Dow Jones dropped 3,500 points since the Fed’s Jerome Powell’s insidious comments in early October to continue to increase interest rates.
The DOW reached another all-time high on October 3rd reaching 26,829. It was up for the 103rd time since Donald Trump was elected President and 46% since the November 2016 election.
This was clearly too much for the Fed’s Powell who then scared investors with his message that he will raise rates well into next year.
(Excerpt) Read more at thegatewaypundit.com ...
I’m trying to understand why Trump keeps saddling himself with so much of the swamp. From Sessions, to his security advisers who dragged their feet on pulling out of Syria, to Rosenthein, to this douche who clearly is trying to upend the markets to have Trump lose in 2020.
No it isn’t but it is a perception. The most damage will be on over leveraged mortgage holders, which is many Americans.
>>The Dow is not the economy.
The Dow is an index of 30 stocks. Broader indexes have also fallen. The way companies are run these days, stock prices mean EVERYTHING. Small changes will lead to changes in the ways companies do business. So in a way, yeah, financial markets ARE the economy.
Both true, but why so many hikes so fast when we just barely started this recovery?
Then why was the Fed so accommodating for the last 20 years, through Clinton Bush and Obama, but NOW decides to hammer investors?
22,931.62 -392.04 (1.68%)
Yippee! Near retirement and with a balanced 401K, I am still getting wiped out and gains for the last couple of years destroyed.
The FED is a monster, they could have moved slower by taking into consideration the world economic slowdown. If they did absolutely nothing for eight years during the Obama administration, they could have spaced out the rate increases and easing to make sure the economy was on firmer ground both here and abroad before hurting millions of Americans.
Still I ask, why now, after 2 decades of lowering rates?
Let me know if Rush has someone on the air who knows what he's talking about -- like Larry Kudlow or Steve Forbes. I like Rush, but he's often in over his head on these things. He's a political pundit, so EVERYTHING IS POLITICAL TO HIM.
I think I have to agree and wonder how anyone can see it any other way. If the Fed was prudent they would slow this down, but they are saying SLOW means 2 more hikes!!! Yikes.
If Alan Greenspan had a son..
‘FED Up’ Yet??
Even if I consider what was done by the FED a good thing. The clown at the FED moved too fast, there is no defending him.
53% of households aged 55 to 64 had savings in retirement accounts and he hurt them all. People on this tread keep saying the Stock Market is a long term investment, those over 60 do not have a long term to make up for what this idiot destroy. And yes I have a balance, supposedly safe account. He costs me tens of thousands of dollars.
It could have accomplished his goal, just slower. He did not need to destroy the stock market to do it.
So, that Greenspan quote, it’s actually from Noam Chomsky in 2014 giving his interpretation of Greenspan’s testimony to Congress in 1997. What Greenspan actually said was “Atypical restraint on compensation increases has been evident for a few years now, and appears to be mainly the consequence of greater worker insecurity. The willingness of workers in recent years to trade off smaller increases in wages for greater job security seems to be reasonably well documented. The unanswered question is why this insecurity persisted even as the labor market, by all objective measures, tightened considerably.”
Raising the rate too much prematurely pushes interest rates up and stifles many business starts. Doing so too much, too soon, can cause bond yields to go too high and bond prices to fall. It can cause a bond collapse. It can start a vicious cycle that would cause economic collapse.
It could even lead to a debt collapse, default and repudiation.
His thesis is as stupid as one would expect from someone so incredibly stupid.
Trump/Ryan/McConnell tax cuts added growth. Yes they did, in year one. But there is no additional added growth in year two. In terms of GDP and earnings it’s “permanent” but in terms of GDP GROWTH and EARNINGS GROWTH, it’s a one-time stimulus. The same with the massive deficit spending push, which was just as big as the tax cut. It’s a sugar high, but it fades. This is currently happening, and it’s happening at the same time that Trump’s trade war is adding to the worries of the market, and at the same time that China itself, the swing variable in global growth, is facing serious growth headwinds for the first time in 25 years.
To say that this 1/4 point move by the Fed is “killing the economy” is pure nonsense. Rates are incredibly low, still, well below “neutral” in other words they are still providing stimulus not tightness to the economy.
Sometimes the stock market gets too high and it declines. These declines are better not ascribed to policy malice without first considering the notion of VALUATION. By sophisticated valuation metrics like the CAPE Shiller PE ratio, the stock market in October was at the highest level ever with the exception of early 2000, and late 1929. It was a piece of shit. I’m sorry to all who lost money. I even lost some myself, but once this bloodbath is over, there may be some cheap stocks, and I will buy them.
Trump has consistently proven he is a very poor judge of people to hire. This time, he has hired someone who is destroying the economy just as much as it was destroyed by the Swamp dwellers in 07 and 08.
It will take years to dig out of the hole that is being created right this very minute.
The stage is being set for a demonrat takeover and overturning of all that has been done these last 20 months. They will wipe this time fram clean as the Teg Plateau of Southern Algeria. There is nothing there for as far as you can see bigger than a coffee cup. It is a desolate wasteland.
What idiot told you that?
Kill the fed, hire a computer
Rising interest rates will swallow up a good portion of the discretionary federal budget.
The timing of this, along with Congress prematurely celebrating forcing Trump to accept no money for a border wall, along with a crashing stock market, along with Clintonistas declaring that it is now common knowledge that Trump is not legitimately President --- ALL leads me to suspect that the coup is not over - that it is developing! Just one example: DoJ is above any oversight whatsoever... King Rod I is ruling the roost; POTUS cannot even get his DECLAS.
We are coming down to it!
Agree. You should see the doom and gloom crowd over at Zero Hedge. They are delighting in their doom porn.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.