Posted on 12/24/2018 10:22:06 AM PST by Sir_Humphrey
wo major stock indexes headed toward their worst Christmas Eve of trading ever on Monday, as the S&P 500 pushed to the cusp of a bear market.
Markets responded to turmoil in Washington. Multiple reports said President Donald Trump is discussing how to remove Jerome Powell from his position as chairman of the Federal Reserve. That discussion, as well as the recent market volatility, spurred Treasury Secretary Steven Mnuchin to call the leaders of the six largest U.S. banks over the weekend. Additionally, Defense Secretary James Mattis announced he would step down at the end of February, saying his views do not align with the president’s.
(Excerpt) Read more at cnbc.com ...
My take is that the ‘smart money’ did not like Brexit chaos, the Kavanaugh scourging, the Democrats taking the House, and other political screw-ups.
The ‘smart money’ has been busy shorting the equity markets since October 1st, while the average joe is told to not worry.
There is a political war between the Leftists and the Conservatives and markets do not do well during wartime.
So why did Trump appoint him? Didn't he see this coming?
I agree. Trump shouldn’t be blustering on about interest rate increases. He should let the fed keep raising the lending rate until the money supply actually meets the demand for it. Presumably, that would also be the same interest rate from which banks will profit the most and at which inflation = 0.
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
If the Fed actually overtightened, it was purely by chance. They actually want enough looseness to keep a core inflation rate of about 2% (slow devaluation of our money, punishing savers and people who declare their capital gains on their taxes).
Banks reassured everyone there is plenty of liquidity for lending...of course, at now higher levels of interest. Bwahahahaaaaa.... This is so funny.
If Trump got rid of most of the tariffs that he imposed — he can leave them on China, Mexico and other enemies, for all I care — these stock plunges would reverse themselves, for the most part.
“The men in the smoke filled back rooms like to make money too”
A leftwad is a leftwad first, before anything else.
If the choice is between advancing their evil agenda or making money, they will choose the agenda every time.
Interest rates go up, big money goes to interest bearing securities. Interest rates go down, they go to non-interest-bearing securities. It has nothing to do with any other news than war.
Screw wall st
Let it go to zero
Raze Manhattan
Start over with swampland
The Fed was wrong to raise the rates. Everyone says so.
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Trump has been criticizing the Fed for raising the rates. It’s a good CYA move on his part.
Really?
” The volatility started with tariffs. Now the markets have further spun out of control because of the general perception that the president is too indecisive and unpredictable.”
That’s an idiotic analysis.
The Fed is hiking interest rates, with no end in sight.
This is all likely manipulated, as was, imho, 2008.
The globalists wanted Obama, and they crashed the economy. Today they don’t want Trump.
The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
If the choice is between advancing their evil agenda or making money, they will choose the agenda every time.
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Right on!
Let the lemmings impale themselves; the smart money will take these schmucks to the cleaners in January.
The Dow reflects the anticipated future in the next 6 months.
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