GayPatriot

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Mr. President, enough about the stock market!

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Sorry to repeat myself, but President Trump keeps hitting the idea that the stock market is making new highs and the media should talk about it. I could post video but, just to keep it text-y, here are Twitter examples from the last couple of days:

Aug 1 – Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!

Jul 31 – Highest Stock Market EVER, best economic numbers in years, unemployment lowest in 17 years, wages raising, border secure, S.C.: No WH chaos!

Big mistake. Why?

  • Candidate Trump understood that the stock market was a Fed-inflated bubble.
  • Candidate Trump understood that the unemployment numbers are fake and disguise the ongoing suffering of Middle America.
  • If President Trump is now tying his reputation to those numbers, what happens when they reverse?

The stock market IS overvalued, and WILL go down eventually, if only for “cyclical” reasons. Maybe down a lot. What happens then?

Consider that Switzerland’s central bank is now a huge holder of U.S. stocks First…Why? Why would they be in the business of propping up the U.S. stock market? Second…What happens when they change their minds, and sell?

A mistake from Trump

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President Trump keeps saying (in speeches) or tweeting things like this:

Donald J. Trump Retweeted FOX & friends‏ – Wall Street hits record highs after Trump pulls out of Climate pact

Donald J. Trump Retweeted Eric Trump – Eric Trump Retweeted Reuters Business – JUST IN: Dow, S&P 500 and Nasdaq set record closing highs.

I wish he wouldn’t. Let’s be clear.

  • Stock market numbers matter to individuals; not the nation.
  • Low numbers don’t mean a President is doing a bad job, and high numbers don’t mean he’s doing a good job.
  • The stock and bond markets are bubbles, fueled by the Federal Reserve Bank.
    • As I said under President Obama, way back at Dow 14,000.
    • We also have bubbles in the real estate, auto loan, student loan, forex (USD) and cryptocurrency markets. But I digress.
  • During the 2016 campaign, Trump knew it and correctly said “We are in a bubble.”

Now Trump is taking credit for the high (bubble) numbers. Big mistake.

Instead, he should be warning Americans about how poor the economy’s fundamentals still are (thanks to Obama – until a lot more of Trump’s reforms get enacted). And readying us for hard times in the next recession.

“Live by the sword, die by the sword.” If Trump is going to take credit for high stock markets now, people will slam him when they fall.