Posted on 04/05/2016 8:35:44 AM PDT by Trumpinator
On a day like Monday when the market drifted down slowly, Jim Cramer was inclined to agree with Donald Trump's view of the stock market.
Last week, Trump told the Washington Post that there is a big bubble in the economy, and the stock market is inflated.
..snip...
On a day like Monday when the market drifted down slowly, Jim Cramer was inclined to agree with Donald Trump's view of the stock market.
Last week, Trump told the Washington Post that there is a big bubble in the economy, and the stock market is inflated.
"It's worth pondering Mr. Trump's views because, whatever your political orientation, they make sense on many different levels and the conclusions are arguably right, at least for a certain group of people living in certain places, namely rich people living in expensive places," the "Mad Money" host said.
Donald Trump speaks to guests during a campaign stop on April 2, 2016 in Rothschild, Wisconsin. Getty Images Donald Trump speaks to guests during a campaign stop on April 2, 2016 in Rothschild, Wisconsin.
"There will always be bubbles." -Jim Cramer
The stock market has had a huge run since it bottomed seven years ago, and many investors have made a significant amount of money if they invested in that generational low.
So, is there a bubble?
When Cramer looked at New York City real estate, it certainly felt like a bubble to him. This was particularly evident in Manhattan, where properties can easily sell for four or five times more than they would go for outside of the city.
(Excerpt) Read more at cnbc.com ...
As long as there is a “Progressive” in the White House, the MSM will sing the Lego Song...Everything is awesome. Everything is cool.... (See! no need to panic!! As long as there is no one to report anything bad, Happy Days are Here!)
I’ll never forget the Clinton Campaign slogan, “It’s the Economy, Stupid!”. They made hay when GHWB gdp hit 1.4% early 1992, only to be revised up by the Govt Bureaucrats to 4% long after the election.
That is not exactly news shattering. Everyone knows there is a bubble. The only thing that surprises me, is that Cramer knows it.
“See! no need to panic!! As long as there is no one to report anything bad, Happy Days are Here!”
isis will appreciate that when the rest of ‘em get here.
He solved the problem in 1991
The only thing that surprises me, is that Cramer knows it.
It surprises me that he ADMITTED IT, Which means HE HAS BEEN LYING TO EVERYONE ALL THIS TIME.
We;ve had almost 7 years of near ZERO interest rates.
this is NOT a free market. Our monetary system, led by the Federal Reserve, is as centrally planned as the former Soviet wheat harvest or shoe production - with similarly perverse results.
price escalations result from excess of demand over supply
we informally call them bubbles when the excess demand is from an unusual source and/or obviously temporary
Manhattan (and Los Angeles and San Francisco and Vancouver, BC) real estate ... big bubbles...largely due to foreign money coming into those markets in substantial sums
stock market — bubble in the sense of all the so-called “stimulus money” (aka: “Printing Press Gone Wild”) ... there’s almost no other workable place for the trillions of “newly printed dineros” to go BUT the stock market, so that’s where most of it winds up
in all of the above cases, it is not difficult to imagine the “excess demand” drying up, and possibly quite suddenly (the Communist Chinese government decides to reimpose effective capital export controls, possible USA political backlash/limitations on foreigners buying up American homes, possible tapering or ending of the Printing Presses or at least the “performance hormones” they’re being fed...whatever, any of these things .... and more...are clearly possible...)
What can we learn from this? TO either avoid investing in ‘hyper-inflated markets’ that are dependent on sources of ‘excess demand’ that could be eliminated or choked off by relatively simple decisions in foreseeable ways....
or, put ‘high risk capital’ (the money you can afford to lose anyway) into such hyper-inflated markets AND BE READY TO PULL YOUR MONEY OUT BEFORE (IF YOU CAN TIME IT?!) THE MARKET BUBBLE BURSTS. This is, of course, easier to do in the stock market than in real estate (what with realty’s longer transaction times)
remembering the old adage,
“bears make money, bulls make money, but pigs get turned into sausage”
BUMP
The market is totally manipulated. The yellow bile in D.C. has corrupt and subverted this country in every direction.
Bear Stearns is fine!
Is Trump going to be making casual statements about the market when he’s President too? I guess he’ll be filling out NCAA brackets like obama and commenting on arrests that aren’t just in his view, also.
Is Trump going to be making casual statements about the market when he’s President too? - Your interpretation it was a casual statement. We have been in BS economy for a long time (my term for it - BS - but you want to call it a bubble economy almost the same thing).
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