Posted on 02/28/2019 2:10:02 PM PST by Enlightened1
The US economy and markets hit several historic records in 2018. President Trump was correct in his policy and the economy was never stronger.
Then in October Federal Reserve Chairman Jerome Powell stepped in and destroyed the outstanding gains.
The market tanked, the Dow Jones dropped over 5,000 points, the Middle Class was decimated and the global markets are now in chaos. The Jerome Powell stock market crash is now GREATER THAN the market crash after 9-11. The guy is a dangerous lunatic.
The Dow is down 5,036 in December from its all-time high on October 3, 2018.
Since Jerome Powell’s comments on October 3rd and continuing promises of rate hikes the Dow Jones sank 18.7%.
The Dow is down over 5,000 points or 18%!
The stock market crashed 14% after the 9-11 Islamic attacks on America.
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.
Over $5 Trillion in Wealth was erased!
As a result of Fed Chief Powell’s actions, Americans have watched their 401k’s dissolve into thin air.
The Powell Stock Market Crash was greater than the 9-11 Attack Stock Market Crash!
On THursday the US government released its 4th quarter GDP numbers. The GDP beat expectations at 2.6%.
The Commerce Department’s Bureau of Economic Analysis measured 2018 growth at 2.9 percent
Jerome Powell added billions of new debt to the economy. He stalled the Trump market surge. He decimated 401k’s. He eliminated trillions of dollars in wealth. And he also managed to bring the economy to a halt.
(Excerpt) Read more at thegatewaypundit.com ...
With the Democrats in control of the House of Representatives we can be assured this will not happen.
When the Republicans were in control of the House of Representatives only half of that happened.
They are not low because the Feds love us.....
The are low because of this....
Granted I’ll give you that.
We are $crewed either way.
It's not sustainable. People with even a minimum of brain power have some assets kept as safe as possible and don't have debt.
My refiner has never purchased a promise note before. I should try that.
They are charging up each card as they like and we are expected to pay the minimum that just keeps going up and up and up.
At no point are we able to borrow against "our" card or spend it the way "we" like. Hell, "we" can't even touch it.
And when we die, our kids get to take on our minimums, while not being able to prosper in their own right.
“If the Fed raises the interest rates too high, then the U.S. will default because we will not be able to make the minimum payments.”
Yeah I have been saying that for years. Interest rates have been kept artificially low for years. Trump’s pro-growth economy indicates it is past time for interest rates to finally adapt to market conditions and rise. When they rise the interest payments alone will consume much of the budget. When it happens to any significant amount these politicians including Trump if he is still around then will be hollering and squealing.
I think Powell made a mistake by not factoring in the government shutdown and the trade war. Was it intentional...don’t know.
He did back off after the stock market fell.
The low rates under Obama reflected weak employment. And so was justified given the legal mandate for the Federal Reserve in the Federal Reserve Act.
Official Unemployment is down, but labor participation is still low. I think the FED should continue low interest rates for a while.
The timing of this article seems a bit off.
“Top financial analyst Burt Flickinger joined Charles Payne on Varney and Co. in December, the day after Christmas holiday....”
Why did Hoft feel the need to cook the books by stopping at Dec 24, since which time the Dow Jones has climbed steadily and is almost back to its Oct 3 high?
Hoft is worse than Michael Cohen
Why stop at Dec 24?
Because he would not have been able to lure Freepers in with his bassdum click bait headline.
>
The only way out is mass cutting of taxes and spending.
With the Democrats in control of the House of Representatives we can be assured this will not happen.
>
And the 2 years PRIOR to the ‘18 election, or the 8yrs of the reign of Zero??
Stones. Glass houses...Disingenuous to lay it squarly @ the feet of the (D)
I think you are right that the article is hyperbolic, but there is some truth there.
I think that the way the fed pursued QE1, 2, ...n ended up sticking most of that money into banking reserves, but the banks needed to hold it as liquidity for the mortgage mark to market situation. So instead of the huge money supply getting into the market, it was stuck in banks, except for financials people who could access that money.
That’s why there wasn’t inflation overall, but I think there was inflation on a localized basis. That’s why the stock market for particular kinds of companies was overvalued (e.g., international tech companies), and why there are so many 1M plus houses being sold in rich neighborhoods where financials industry people worked all around the big cities.
So, now the fed wants to extract some of that money since it’s really unprecedented. They make some moves at raising rates, but the reality is there is a TON of slack remaining in the labor market. We still aren’t to the same point in labor participation that we were when the whole debacle started. Real wages are finally starting to go up for the people who voted for Trump (i.e., blue collar workers and middle class workers). Until they are at least to parity, I’m not worried at all about inflation.
The other issue here is that from a regulatory standpoint, we need to put banking back on a main street basis rather than an investment banking basis.
I don’t know that Powell knows what he’s doing though for unwinding the mess of the past 10 years, though, but we’ll see
Looks like this guy has been asleep the last two months.
The real reason for the December drop? IRA minimum withdrawals are calculated on the value of the portfolio as of Dec 31. Due to the drop, the rich folks will be required to take out less (and pay fewer taxes) in 2019. Once that was set, they let the market return about to where it was for most of last year.
Ah, well, read Rip Van Winkle’s blog if you want.
Probably Javanka!
“Gold and Silver markets have been manipulated for years and you cannot even hold gold. You get a promise note and hope you did not purchase fools gold.”
Maybe I am misunderstanding this comment. I agree the metals markets may be a little questionable, but I purchase physical gold in and silver when the spot and spread is acceptable to me. Usually once or twice per year. I do not buy online and I know how to test for counterfeit, although I trust my local dealer. Only a fool would hand over cash and get a promise for delivery at a later date. That actually happened in my nick of the woods a few years ago. A couple fo old timers were out $40-$50K waiting for the dealer to deliver. Physical G & S are ALWAYS available.
~4% of my total wealth is in physical gold and a small amount of silver. Some in a hidden floor safe, some in a safety deposit box and some is located in the ground. Gold is a lot easier to store than silver obviously as it takes up a lot less space. You’re not likely to make any money on physical metals. You are far more likely lose money in physical metals if you try to buy and sell for profit short term. It’s a horrible investment but it’s an OK store of wealth. I have no delusions of trading metals for food or other items in a SHTF situation either. I just have it because I like it.
Then in October Federal Reserve Chairman Jerome Powell stepped in and destroyed the outstanding gains.
...
I couldn’t agree more, but he’s only doing what every Chairman has done for decades. There’s nothing short of all out world war that is more destructive than the US Federal Reserve. They cause recessions and unnecessary hardship around the globe with their fake premise that economic growth causes inflation.
At least we now have a president who is fighting the Fed.
True.
But Obola’s Fed artificially dropped Obama’s interest rates to near-zero, then kept them there for 7 years.
All through a demcorat’s time in office.
I believe this is wrong. Maybe gasoline or a TV from China haven't gone up much in 10 years - but what about housing in America's major cities? Healthcare? Government/taxes? Education? FED policies have goosed asset prices and government - and those have bubbles are costing citizens a lot.
Yes, I don't believe the government published CPI
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