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From Nouriel Roubini, one of the most respected economists on Wall Street:
"NEW YORK (Project Syndicate) — Financial markets have finally awoken to the fact that Donald Trump is U.S. president. Given that the world has endured two years of reckless tweets and public statements by the world’s most powerful man, the obvious question is: what took so long?
For one thing, until now, investors had bought into the argument that Trump is all bark and no bite. They were willing to give him the benefit of the doubt as long as he pursued tax cuts, deregulation, and other policies beneficial to the corporate sector and shareholders. And many trusted that at the end of the day, the “adults in the room” would restrain Trump and ensure that the administration’s policies didn’t jump the guardrails of orthodoxy.
More than anything else, though, the sharp fall in U.S. and global equities during the last quarter is a response to Trump’s own utterances and actions. Even worse than the heightened risk of a full-scale trade war with China (despite the recent “truce” agreed with Chinese President Xi Jinping) are Trump’s public attacks on the Fed, which began as early as the spring of 2018, when the U.S. economy was growing at more than 4%.
But then came Trump’s decision to shut down large segments of the federal government over Congress’s refusal to fund his useless Mexican border wall. That sent markets into a near-panic, and the government shutdown was soon followed by reports that Trump wants to fire Powell — a move that could turn a correction into a crash. Just before the Christmas holiday, Treasury Secretary Steven Mnuchin was forced to issue a public statement to placate the markets. He announced that Trump wasn’t planning to fire Powell after all, and that U.S. banks’ finances are sound, effectively highlighting the question of whether they really are.
Recent changes within the administration that do not necessarily affect economic policy-making are also rattling the markets. The impending departure of White House Chief of Staff John Kelly and Secretary of Defense Jim Mattis will leave the room devoid of adults. The coterie of economic nationalists and foreign-policy hawks who remain will cater to Trump’s every whim."
Crazy like a fox my ass. You seem to think there's a method to his madness. The only method he has is ignore/fire his key advisers, find yes-men who won't get in his way, and make reckless spur of the moment decisions with ZERO thought given to any ramifications. This is well-documented, J. There's an extraordinary amount of known instances where advisers were caught off guard, or were totally blind-sided (most recent example: the Syria/Afghanistan decisions). Now there's just a series of Yes Men who will encourage his reckless Tweets and Lies at a risk of public humiliation and firing. But the market is no longer having any of it. That was very evident when he lied and/or greatly exaggerated the results of his meeting with Xi at G20. Once the market found out the truth, it plunged 1,000 points.
Why don't you understand this???
"NEW YORK (Project Syndicate) — Financial markets have finally awoken to the fact that Donald Trump is U.S. president. Given that the world has endured two years of reckless tweets and public statements by the world’s most powerful man, the obvious question is: what took so long?
For one thing, until now, investors had bought into the argument that Trump is all bark and no bite. They were willing to give him the benefit of the doubt as long as he pursued tax cuts, deregulation, and other policies beneficial to the corporate sector and shareholders. And many trusted that at the end of the day, the “adults in the room” would restrain Trump and ensure that the administration’s policies didn’t jump the guardrails of orthodoxy.
More than anything else, though, the sharp fall in U.S. and global equities during the last quarter is a response to Trump’s own utterances and actions. Even worse than the heightened risk of a full-scale trade war with China (despite the recent “truce” agreed with Chinese President Xi Jinping) are Trump’s public attacks on the Fed, which began as early as the spring of 2018, when the U.S. economy was growing at more than 4%.
But then came Trump’s decision to shut down large segments of the federal government over Congress’s refusal to fund his useless Mexican border wall. That sent markets into a near-panic, and the government shutdown was soon followed by reports that Trump wants to fire Powell — a move that could turn a correction into a crash. Just before the Christmas holiday, Treasury Secretary Steven Mnuchin was forced to issue a public statement to placate the markets. He announced that Trump wasn’t planning to fire Powell after all, and that U.S. banks’ finances are sound, effectively highlighting the question of whether they really are.
Recent changes within the administration that do not necessarily affect economic policy-making are also rattling the markets. The impending departure of White House Chief of Staff John Kelly and Secretary of Defense Jim Mattis will leave the room devoid of adults. The coterie of economic nationalists and foreign-policy hawks who remain will cater to Trump’s every whim."
Crazy like a fox my ass. You seem to think there's a method to his madness. The only method he has is ignore/fire his key advisers, find yes-men who won't get in his way, and make reckless spur of the moment decisions with ZERO thought given to any ramifications. This is well-documented, J. There's an extraordinary amount of known instances where advisers were caught off guard, or were totally blind-sided (most recent example: the Syria/Afghanistan decisions). Now there's just a series of Yes Men who will encourage his reckless Tweets and Lies at a risk of public humiliation and firing. But the market is no longer having any of it. That was very evident when he lied and/or greatly exaggerated the results of his meeting with Xi at G20. Once the market found out the truth, it plunged 1,000 points.
Why don't you understand this???
- Wonderboy
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