Justified Or Not, Yellen Takes A Parting Shot


#21

No… they would have continued in the vain of at least the last two presidents… ‘Fiscally Irresponsibly’ is obligating the nation for something that it is pretty damn clear we can’t hope to pay for… The unfunded liability continues to multiply but no one in politics is going to tell people we are broke and hard times are ahead. You can keep kicking the can down the road so much that the can no longer looks like anything be scrape metal.

As far as people being interested in our debt, keep in mind that it was quite clearly advertised that sevaral countries were gunning for the US Dollar… and no one cared.


#22

Understand that the market is up well over 40% since trump took office. The banner headline of course is the

MARKET HAS ERASED ALL GAINS THIS YEAR !!! …

That is, in total a 7% drop in gains that occurred over the last 35 days. 7% is most certainly in correction territory but it is not a devastating sell off and it certainly doesn’t indicate, yet, a recessionary trend.

Having said that, I wouldn’t doubt that this is the opening salvo of a pull back much worse than 2008… The reaction to 2008 and the lack of fiscal discipline by ANYONE has set it up. This of course isn’t on Trump or Obama but certainly has its roots in easy money policies of Alan Greenspan who helped create Clinton’s 'credit surplus… and the tech bubble… which lead to the RE bubble which lead to the credit bubble… courtesy your friendly central bank, the federal reserve…


#23

Well no, of course not. But would you be suggesting that they wouldn’t do something else that added 1.5 trillion dollars to our national debt??? There is no difference between the two parties, they may take separate routes but they both bring us to the same place in so many regards. Time for a change.


#24

You’re going to see all the same people here that played along with Trumps charade that a stock market that climbed rather steadily from mid March of 2009 through the first of 2018 was a result of Trumps policies, finding every way possible to blame any declines on Obama, Bush, Clinton or even the FRB. But the partisan trumpians here will acquit Trump of any blame. If and when it starts climbing again, then they’ll be right back to patting the TIC on the back. It doesn’t require much effort to expose this hypocrisy.


#25

@Scott nice attempt to cushion the fall but reputable news sources are saying otherwise.

Dow suffers worst day in over six years as global stock markets fall


#26

It could be the beginning of some very big downturn. Just because the move was a record drop in one day does nothing to talk about the meteoric rise with little pull back that has occurred. Someone on here said a long time ago that you watch. The Trump haters (as opposed to people who just don’t pay much attention) will say little about the ‘historic’ stock market gains but you just watch them when any kind of correction occurs. While your at waggling your finger at… Trump for what might be coming, some of us have said since 2008, the can kicking was bound to occur. :roll_eyes:


#27

OK, what did he do? Of course the tax cut without any responsible cuts to spending was going to bite… but then again, getting any meaningful discussion going over entitlements is a non starters… Now isn’t it? What I find funny is that we hear from a segment of society that none of the results in unemployment, sentiment, wage rises or business deciding to return to return to the US or indeed repatriate the cash they sit on is as a result of anything Trump has done… No…NO… it is because of the fabulous economic policies of Obama. And yes, the FED had a big hand in adding a 100 billion to the debt service… something Obama never had to deal with… of course the FED and congress started dealing the hand of the next bubble when the last one burst… because no even talked about fixing the underlying problem…


#28

Oh and by the way… yesterdays ‘historic’ points drop doesn’t even make the top twently list of ‘historic’ one day percentage losses…


#29

Of course the jobs market is apparently at least in part responsible for this, according to some analyst. I know as an employer myself, when unemployment gets too low, below 7% or so, you get a shortage of labor.


#30

7%

Everyone in the world considers 4% to be full employment… You are saying that the labor market has been under pressure of wage increase since late 2013? Maybe in your field medical billing reps don’t come across the border with a lot of frequency…


#31

True enough. But neither party cares about debt. And the TIC, campaigning on how bad it is, and criticizing Obama for doubling it, yet silent on his predecessor who also doubled it, seems himself, now that he is president, not to care about it anymore. Google the debt clock and watch it in horror. And of course there’s the tax bill that adds 1.5 trillion to it, and another trillion will be added during this year. No difference in the big things. Time for a viable third party.


#32

What would you have the third party advocate… Please… say something of substance so it can be talked about… heck, if you don’t want to answer little old me, why don’t you start a thread of your own and lay out a discussion about what a third party should do to address our fiscal, social and foreign policy issues… give us some fodder except for your standard… ‘Something Different’…


#33

Astute people all over the world are realizing the degradation of our rule of law. Why pay a premium to invest here when we look more like a banana republic every day. The Obama-clinton weaponization of our most important institutions will have repercussions far and wide.

On the other hand the cleanup is well underway. This is long term bullish.


#34

Lets do talk about this. Their is now doubt that the ‘Trump Effect’ had a direct impact on illegal migration over the border and while it is somewhat more arguable, consumer sentiment, small business sentiment rose considerably after Trump won the election. Their can be no denying that claims by various businesses that raises and bonuses were attributed to directly Trumps tax plan.

History will tell us that after market crashes dating all of the way back to the early 1600 that the markets will rebound. The 2008 financial crisis was the second worse decline in US history. The markets, if they were ever going to recover would have done so, to some extent, without ANY help from Obama. It is true that he was handed a situation that was serious but many businesses were either going to go bankrupt or they and their underlying stocks were going to recover… So… I would stay that between the propensity for the markets and business to heal, particularly if they were only collateral damage to the banking meltdown were going to recover… and padding that recovery with 10trilllion in government gimmicks like cash for clunkers and business failures like Solyndra gave him some boost too. I will say that his policies did do wonders for the gun industry…


#35

Um…Trump is the president of the banana republic. :wink:


#36

One would have to believe, just like we must believe that Obama inherited the economy from Bush… Trump inherited the Republic, bananas and all, from Obama… Its hard to stop momentum… perhaps with enough deflect spending…


#37

Yep, the swamp drains Trump.


#38

This is all part of the Austrian cycle. Long and the short, put simply is; the federal reserve maintains a monopoly on currency and keeps interests rates artificially low. This sends the market signal to, and incentivizes, businesses, smaller banks, and producers, to borrow money, expand, and buy, rather than making decisions based upon a natural market balance.


#39

The market is fraudulently over-valued and is over-bought. There is four times more derivative debt than there was during the 2007-2008 crisis. The investment banks did nothing to change their gambling behavior after they got the bailouts. You can’t have ten years of a rising stock market with no corrections. That is not healthy nor is it natural.

This drop is not a correction. As it affected all global markets. This is the crack in the dam before the big crash yet to come.

This will not lead to a recession, but a depression of tremendous magnitude. It will take decades to recover. All the debt bubbles will burst all at once. This will be bigger than the Great Depression.

800 trillion margin-derivative debt bubble.
Residential real estate debt bubble.
Commercial real estate debt bubble.
Auto loan debt bubble.
Student loan debt bubble.
Consumer credit debt bubble.

Two very vulnerable and floundering institutions…Wells Fargo and Deutsche Bank are very likely to go belly up and bankrupt during this crash.

A very good chance that General Electric is done for unless military contracts leading up to war with China may somehow save it.


#40

The US Dollar is in the process of losing its status as global reserve currency. This is happening right now, various countries are making deals in Chinese RMB.

We can bat around the idea about whether this is a genuine revolution, or if its just the Rothschilds setting up shop somewhere else, the parasite having destroyed its American host. Although the Rothschilds seem to be in meltdown right now, selling properties left and right. This stock market crash is probably a reaction to the memo, in anticipation of further, more revealing memos, but the PetroYuan is in the background.

The USA is something of a banana republic, relying on one big export item for its trade. Unfortunately, that item is the US Dollar, which nobody is going to want in a few months time. How will the blacks react when gibs stop working? What will all these government affirmative action hires do when the government can’t pay them? I guess a lot of Mexicans will simply return to Mexico, but anyone with genuine skills fulfilling real needs will be fine. I also expect gender relations to return to something approaching normality, as women will need someone to provide for them once more.