Opinion: Will Trump usher in an economic boom?

Market Watch ^ | December 7, 2016 | Darrell Delamaide

[2ndDivisionVet]

Will President Donald Trump usher in an economic boom?

In case you haven’t noticed, while liberals fret about who Trump is talking to on the phone and conservatives fret about trade wars and deficits, the stock market is going crazy.

Irrational exuberance or eager anticipation of a rebounding U.S. economy unshackled from over-burdensome regulations, high corporate taxes and too-timid fiscal policy?

Irrational exuberance or eager anticipation of a rebounding U.S. economy unshackled from over-burdensome regulations, high corporate taxes and too-timid fiscal policy?

Paul McCulley, former chief economist for Pimco, says it’s the latter.

“The market is essentially celebrating the end of fiscal austerity,” McCulley said last week on CNBC. “And it just happens to be a vehicle of Mr. Trump. But the end of fiscal austerity is the key economic issue.”

McCulley, who said he voted for Hillary Clinton, added that his biggest complaint about his favored candidate was that her pledge to “not add a penny to the national debt” was tantamount to a “straitjacket of fiscal austerity forever.”(continued)

[Robe]

DOW RACES TO 20,000!... Drudge Report

[Cowgirl]

There is no market anymore, only computers set on up and down. The stock exchange use to have over 6000 employees. It now has less than 600. The banks are exploding in derivative debt. The bonds are accelerating in interest rates which have to be purchased by the Fed. Trump told us a crash was coming.
The stocks will continue to rise and then boom. I love Trump for all he is doing and truly hope he can do something about the bankster situation, but just like the jobs report, financial news is all fake. Other currencies are losing value and so will the dollar, maybe even sink to practically nothing.

[NohSpinZone]

“End to fiscal austerity.” WHAT planet has this clown been living on? If doubling the national debt in eight years is austere, I’d hate to see what he would have done with a profligate policy.

More fake news.

[BeauBo]

“The market is essentially celebrating the end of fiscal austerity,” McCulley (who voted for Hillary) said last week on CNBC.

Fake News. Obama was the biggest (and most wasteful) spendthrift in human history.

Deeper in the article, however:

Bard College’s Walter Russell Mead... speculates on a “path to Mt. Rushmore” for the incoming president if he pushes the potential of the shale revolution.

If enacted, the proposed Trump tax cuts and deregulation will unleash a tidal wave of pent-up growth.

[Theoria]

Yeah. We've had a ‘stimulus’ every year for decades. We use debt to finance our economy. I'd like to see if we can grow without adding to the national debt.

[Hardastarboard]

I’m actually a bit nervous about the recovery. I think the pent-up demand and energy in America is going to be huge.

[bIlluminati]

By my math, if the debt goes up by $10 trillion in 8 years, that’s deficit of $1,250,000,000,000 per year.

Cutting the corporate income tax will free a lot of accountants to contribute to the productive economy. Cutting regulations at the EPA will free a lot of bureaucrats to become baristas.

[Night Hides Not]

Simplifying the tax code will return 100s of millions of hours spent on tax returns to more productive pursuits.

Remember when the IRS eliminated the August 15th extension? They estimated that 26 million man-hours were saved by this action.

[truth_seeker]

My take: With each passing day, people are coming to realize he intends to do what he campaigned on.

And they generally like his judgments, about people and about policies.

Market says great.

[TomGuy]

It is not a question of ‘will’.

It has already begun.

The amount of economic activity by the end of the first quarter 2017 will make Obama’s ‘great economy’ embarrassingly look like a day at the nickel slots.

[piytar]

Um, he has already started to do so...

[TomGuy]

“The market is essentially celebrating the end of fiscal austerity,”

Fiscal austerity?

What about the big bailouts and the supposed infrastructure spending (that never happened, but the money went somewhere)?

The last 8 years have been anything but austere. Just look at the costs of Michelle's several-times-a-year vacations.

And there is all that spending that went to various 'green' industries -- many of which have since declared bankruptcy or gone out of business.

[arthurus]

If he does the right things economically we are apt to experience a pretty sharp and deep crash but if a proper economic line is maintained that will be followed by a long boom.
The entire economy is in a tremendous bubble and all the borrowing in the world can only inflate that bubble until it bursts. The larger the bubble is allowed to grow the worse will be the collapse. Wait long enough and the collapse will result in famine and foreign conquest.

[SisterK]

Those of us who have Gone Galt can come out of hibernation.

[Rebelbase]

Not that it means much but around here there are a couple of hundred acres of farmland that traditionally has been either soybeans or corn that this fall were planted in sod.

I’ve only ever seen sod booms in times of economic increase.

[Organic Panic]

I predict bad times. Not long lasting but painful. There is no way around dealing with the debt and spending. AND the world powers MUST make sure any failures happen on Trump’s watch. It will be painful but only for a couple years. But Trump is smart enough to deal with this inevitable situation and, if he sticks to his promises, we Americans will pull through this stronger than ever. 10 trillion dollars on Obama’s watch has to come due eventually. The FED and world banks can’t wait to dump it on Trump’s lap.

AND, so I can catch the spears here at FR, I do believe Trumps approach as Caudillo of the economy is dangerous. BUT, As I said. He is smart enough and humble enough to admit mistakes and adjust his policies. I did not support Trump in the primaries but I love what I see. I am extremely optimistic and excited for the future with him as president.