"Spitfire, post: 6127630, member: 82375"
Greetings:
It’s completely his fault.
No that is not true. Thursday's 10% drop can easily be laid at the feet of the President. However there are significant economic problems associated with this event and significant structural problems that make events like this worse.
1. Event problems: One cannot determine where a stock should be priced if one has no idea what the earnings of that company will be. At this moment, that is where we are. The other absolute reality is that almost ALL earnings out there are coming down...so stock prices must fall.
2. Structural problems: unchecked high frequency traders (so easily fixed) and the removal of the up-tick rule for short sellers (so easily fixed) put immense downward pressure on prices during a down cycle.
The reason the market is dropping is because the market is transmitting that it wants an a actual response here and not more Fed money flooding the markets.
As to Thursday's move, yes this is absolutely correct (except that everyone now wants both...fiscal and monetary stimulus). Trump's speech Wednesday evening was quite possibly the worst I have ever seen from a content perspective. As I have said many time in the past few days, his utter failure of leadership is
once again, on display for the whole world to see. Instead of promoting assistance for the industries that are most effected, our dumbass President, made the situation
worse for our airlines!!
How much money did Treasury Sec Munchkin toss at the short-term funding markets yesterday alone? In normal circumstances, all that Capital is great and markets respond positively.
That was the Federal Reserve. Markets responded positively yesterday morning and during the day to aggressive action and commentary out of Europe (and the overreaction on Thursday)...the end of the day rally was a relief that the President seemed to finally be taking this seriously.
But not now. Trumps actions and words suggest that he sees this as nothing more than an economic issue.
It’s not.
Actually Trump's action and words clearly state that he doesn't see this as a problem at all. Everyone of his idiotic off the cuff remarks has shown a complete disregard for the health of Americans and/or American business.