Posted on 02/12/2020 9:10:29 AM PST by SeekAndFind
The Democrats have failed at everything they’ve tried to get to Donald Trump. What might their next failure be?
Impeachment didn’t work. And neither did spying on the president, which got them to impeachment but not to removal from office.
The Russian investigation flamed out. And removing Trump through the 25th Amendment — claiming he is unfit for office — was a non-starter.
Even the hope that a recession will hit before the election is not only fading, but is now a damn-near technical impossibility.
The Democrats need something.
So what can they try next to make that something happen? With all else failing, there is only one thing big enough that might make people turn against Trump: a crash in the stock market.
It won’t work for a variety of reasons that I’ll get to in a minute. But hear me out as to why this might end up being the Democrats’ last-ditch effort.
The stock market is in an obvious bubble caused by years and years of easy monetary policy by the Federal Reserve, which is too scared to allow interest rates to rise.
People have become accustomed to the market only going up. Even a normal 10 percent or 20 percent correction in stock prices would scare the hell out of Americans.
So why wouldn’t the Democrats go after the vulnerable market? Well, they already might be.
Last week, Democratic senators, including Ohio’s Sherrod Brown, sent a letter to Fed Chairman Jerome Powell asking questions about his bank’s recent massive repurchase (repo) agreements. Powell is scheduled to testify before the Senate Banking Committee this week, and Brown is the ranking Democrat on that committee.
Even a Republican senator is pestering the Fed about its balance sheet, which is ballooning because of the repos it has done recently
(Excerpt) Read more at nypost.com ...
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You can pretty much bank on them attempting to crash the markets this year. It’s only a question of when, and how far things will run before they pull the rug out from under all of us.”
So how would they “pull the rug out from us”? I have been a serious investor for over 40 years and as such have followed the markets closely. I have never sen nor have I read of a time when mere words ever did anything more than cause a blip in the markets. The reason is the markets move on fundamentals and not sound bites.
Any downward move would have to be pinned to an action taken by the President such as an earnings crushing series of regulations such as the Left had been doing throughout Obama’s terms. Trump has been cutting regulations and by so doing has unleashed the economy allowing it to grow.
The economy may indeed contract for some reason I cannot fathom at this time but unless it can be tied to Trump it will not have much if any effect on his chances of re election.
I'm not sure of that. We've weathered many of those and the market generally bounces right back. We don't seem to get into many ten-year sideways malaise periods these days.
I was watching a YouTube video the other day and a Trump ad came on bluntly warning about socialism. The implication was “don’t vote Democrat.” I think they are already doing what you suggest.
They're setting up the fall. Some of these people are playing the stocks forcing them up then pulling their money.
I've been watching Netflix stock. It's near it's peak right now which means they're ready for the pull. I would say within three weeks is the pull
I have seen Trump warn against socialism, but I haven’t seen him say directly that even the mere nomination of Sanders could spook the markets. The point is to tie Bernie to a market correction before the media gins up another doom and gloom correction (”market experts warn of an impending recession”), thus defusing any IED the leftist media will attempt to detonate in the Sept/Oct time frame.
“....but I haven’t seen him say directly that even the mere nomination of Sanders could spook the markets.”
He has mentioned it on different occasions.
Many others have said the same thing.
“I believe that RGB will announce her retirement in October, making the election a mandate on the supreme court appointment to replace her.”
that would certainly take the heat off of an election that’s a choice between communism vs. capitalism ...
“When they pull their money out it’s going to look like a run on the banks.”
how would they “pull their money out”? cash? deposit in another bank? buy stocks? buy bonds? commodities? stuff it under their mattress?
This cycle has been going on for years now. Some stocks are more affected then others. The one I'm watching is Netflix stocks in the past three year years. NFLX is going to be a big sell in the next couple weeks.
Maybe that's what the coronavirus is all about....
“Most put it into cash.”
so you think these guys are going to walk out of the banks with billions in hundred dollar bills?
no. When it comes to selling stocks. Those stocks go into an account called cash which has a very small interest rate. It’s like a savings account in a bank
“Those stocks go into an account called cash which has a very small interest rate. “
stocks don’t “go” into an account called cash, one first SELLS stocks and then can sweep the funds into money market funds prior to re-investment elsewhere ...
and what you describe is not actually “cashing out” anyway, because all of those so-called money market funds are nothing more than short term bond funds, which is where almost everyone including the banks keep their short term funds, so “cashing out” of banks to try to “crash” them and putting the money in money-market funds pretty much just moves the money from bank pocket to a different bank pocket ...
your whole claim of withdrawing large funds from banks to try to crash them anyway is ridiculous; the people who put large amounts of funds in banks are the ones who own them anyway via capital ownership of the banks’ stock shares, so the last thing the big depositors/owners would ever want to do is crash their own banks ...
said, "the last thing the big depositors/owners would ever want to do is crash their own banks"
Once your stock is old it's not yours.
The Stock market dropped on January 21 2020
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