Posted on 12/23/2018 9:59:30 PM PST by familyop
Treasury Secretary Steven Mnuchin startled financial analysts, bankers and economists Sunday by issuing an unusual statement declaring that the nation's six largest banks had ample credit to extend to American businesses and households...Two Trump advisers, speaking on the condition of anonymity, said the calls would stoke unnecessary alarm. "No one thought we were at crisis level," one of these people said. "It's going to create more of an issue than we had already." Mnuchin and the president had a call on Saturday to talk about how to reassure the markets. Aides said that Trump knew the Powell story hurt the markets but that he did not want to defend Powell. So he told Mnuchin to put out a statement.
(Excerpt) Read more at chicagotribune.com ...
The stock market runs on fear and uncertainty. Both are there and the Dems will ratchet it up
Think about that...13.29% growth in earnings.
The fact that the financial BMI is higher than that of the big banks indicates regional banks are growing faster than the big ones.
And the economy is growing nicely and corporate expansion (particularly in manufacturing) is creating new jobs that are hard to fill. To fill them, companies are hiring and training high school kids and ex-cons in programs that are promising.
Chin up.
This economy is built on debt, and as rates slowly rise (as they just did) people are going to find it harder and harder to get out from under it. Not Trump’s fault, but I’ll believe the economy is fixed when Americans start having children again (just because it is the ultimate expression of economic confidence).
The stock market and the economy don’t always mirror each other, and there are times when emotions and manipulation can, in the short run, make investors ignore the fundamentals.
Our economy is the envy of the world, and has been since tax cuts and deregulation.
Anyone who still believes in Efficient Market Theory just hasn’t been paying attention.
I am buying in.
Yep, they are totally ignorant idiots. They were never told by the media that the economy is going great but if things slow down, they’ll be told real quick.
You’re right on every point.
Spot on the markets are taking a beating because of unstable countries but businesses here are fine.
Wonder how many people invested in China and socialist countries?.
That said, I believe in the Efficient Market Theory, but only over time.
I watch the market all day everyday as I work on other stuff and think the recent gyrations are due mostly to a slowing world economy, China-trade uncertainty, algorithmic trading, and the general uncertainly of Trump's efforts to repair some major imbalances in world trade that have worked to the disadvantage of the U.S.
As an aside, the market volatility is also a consequence of having Trump pull down the curtain that has hidden what China is doing to increase its influence around the world. Along this line, I heard the other day that China was offering free telecommunications infrastructure (ZTE, Huawei, etc.) to developing countries which would give China a huge platform from which to spy on everyone who dealt with said countries. That is part of the reason the CFO of Huawei was taken into custody.
Lotta stuff going on that has come into the public view. I think it a good thing that we know what is going on in the world, but the markets do, of course, factor all that into prices.
If I weren't already all in, I would also buy in right now.
I am with you 100% on this one, most of the midterm seats were lost LONG AFTER the election was over!!! OUR side doesn’t seem to want to do a DAMN THING about it!!! The midterm WAS STOLEN plain and simple, not one doubt in my mind!!!
A huge chunk was parked bank bailout money. We are in government bailout bubble
You’ve correctly noted a lot of the “reasons” for a downturn. Others include the fact that indexes are so easily bought, sold, shorted or even “ultra shorted” (2 or 3 times downward movement funds and ETF’s).
The craziest thing about it right now is how Goldilocks everything really is with the US economy. Low unemployment, high corporate profits, less regulation, low inflation, low energy costs, low borrowing costs and to top it off a record holiday buying season.
I don't think that's accurate.
ETF's are merely pools (unit trusts) which contain the stocks in proportion to their make-up of their subject indices. They (the ETF's) are squared up daily to stay in balance with the indices.
Issuers of the ETF's have no losses in truing up the ETF to the collective value of the underlying stocks except the costs of the trades and that cost is passed on as part of the management fee.
Same as to shorts.
"Ultra shorts" close out each day, so they are only a tool for day traders. And ultimately they are backed by financial institutions who have written contracts to provide a backstop.
The volume in "2X" or "3X" ETF's is minuscule and does not represent a threat to the overall market, only to the underlying financial institutions who issue the "make whole" contracts.
I was in the business when the first ETF was introduced (the SPIDER or "SPY"). That's been a long time now.
ETF's aren't a get rich quick scheme but they are a great way for investors to match or beat the S&P.
Before the SPIDER's, no investor could beat the market. Now, at least, every investor can keep up with it.
I have been beating the S&P for years with ETF's (but not by much). But such was unheard of before ETF's
[We papered over the paper.]
Oh, I agree. But I was better off before we papered over paper.
[In the meanwhile we have a federal debt of $21 trillion which nobody in Washington, D.C. seems to care about.]
Looks like we’re closing on $22 trillion, if this is correct
[ Who wrote this, a Chinese guy? ]
Why must I know where Chinese restaurant is??????
Yes, Bill Maher is lower than pond scum and has been for many years.
[You’re right on every point.]
I wish I wasn’t. They’re brainwashed like the Brown Shirts.
They are truly that delusional and that seems very dangerous to me. Be very careful if you run into one in public.
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