Warm Southern Breeze

"… there is no such thing as nothing."

Does This Trump-Caused Market Slump Foretell Recession?

Posted by Warm Southern Breeze on Tuesday, December 25, 2018

Of course, the Stock Market is NOT the economy, but for many, it’s the easiest touchstone to consider approximating the economy. And because most Americans are NOT heavily invested in Wall Street, its performance only nominally and indirectly affects them.

However, for those traders whose livelihood depends upon its gains or losses, such as corporate and investment banks, and brokerage houses, speculators, derivatives traders, hedge and other type funds, and the like, it doesn’t portend well.

And then, Steve Mnuchin, Secretary of the Treasury, while vacationing in Mexico, decided to call on Sunday the CEOs of 6 of the largest banks in America (Brian Moynihan of Bank of America; Michael Corbat of Citi; David Solomon of Goldman Sachs; Jamie Dimon of JP Morgan Chase; James Gorman of Morgan Stanley; and Tim Sloan of Wells Fargo), and then Twitterized it ex post facto. The media managers at Treasury decided to inform the public that… “The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues, and that the markets continue to function properly.”

The Current White House Occupant is Mad at Mnuchin, and wants to fire Federal Reserve Chairman Jay Powell, ostensibly because Mnuchin told POS45 that Powell would be a good choice for Fed Chairman. That’s according to four anonymous people, who were described by Bloomberg News as being “four people familiar with the matter” and speak “on condition of anonymity.” Where I come from, and live, that’s called cowardice. It might be called something else in Trumpanzeeville.

In the days ahead, POS45 will fire Mnuchin, because he can’t fire Powell, and blames everyone else but himself for the lousy, full employment economy. He blames the Democrats for lack of money to “build the wall” when Republicans control the House and Senate.

Remember when, on June 16, 2015 he said in part that, “I would build a great wall, and nobody builds walls better than me, believe me, and I’ll build them very inexpensively, I will build a great, great wall on our southern border. And I will have Mexico pay for that wall. Mark my words.”?

Treasury Secretary Steve Mnuchin & wife Louise Linton hold sheets of money at the Bureau of Engraving and Printing in Washington, D.C., Wednesday, November 14, 2017 showing the first run of bills featuring his signature.

And now, The Con Artist in Chief wants American taxpayers to foot the bill.

According to his style (as a monkey businessman, he’s accustomed to giving orders which no one questions… which does NOT happen in government – witness the numerous news stories of people who tell him “you can’t do that” to various things he thinks he can simply order to be done), he ought’a just tell Mnuchin to go print some money, put it all on pallets, and send it to Mexico to have their bricklayers “build the wall” and dig the dirt for it from their side.

Alternatively, he could start a 501(c)3, get all his rich buddies to donate to it (tax deductions, you know), and then present it as “a gift to the American people.” Problem solved.

Earlier, on December 11, he said “I will take the mantle. I will be the one to shut it down. I’m not going to blame you for it.”

Later, on December 21 he blamed the Democrats and Tweeted that “The Democrats now own the shutdown!”

It’s government by Twitter.

But what we ALL really wanna’ know is…

Is America Great Again yet?

My sources say…

Meanwhile, NPR has reported that…

“The stock market was only open for half a day Monday, and that was more than enough time for the Dow Jones Industrial Average to drop 2.9% to 21,792.20. That was its worst Christmas Eve performance since 1918.

“Other U.S. indexes fell too. The Nasdaq lost 2.2% to 6,192.92. The Standard & Poor’s 500 index fell 2.7 percent to 2,351.10.

U.S. stocks are on track for their worst year since 2008, which was during the Great Recession, and their worst December since 1931, which was during the Great Depression.

“The markets have been dealing with concerns of a slowing global economy, the trade dispute with China and last week’s interest rate increase — the fourth by the Federal Reserve this year.

“Over the weekend, reports surfaced that President Trump was asking advisers if he could legally fire Fed Chairman Jerome Powell. Trump nominated Powell last year to take over the Fed, but since interest rates began rising, Trump has upped his rhetoric against Powell.”

www.npr.org/2018/12/25/680010415/dow-suffers-record-breaking-christmas-eve-losses

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