“It makes me very happy. I think that people in the market should be very thrilled.”
— President Trump, quoted by Barron’s after the Federal Reserve cut interest rates to zero yesterday. Stock trading was halted this morning just seconds after the market opening.
Bloomberg: “Traders are pricing in about 80 basis points of cuts in March, and 100 basis points by July, which would drag borrowing costs down to zero.”
“In my opinion, it’s a great time to buy stocks or into your 401K. I would be all in… let’s see if I’m right ….”
— Eric Trump, tweeting on February 28.
Did we really think the man who couldn’t sell steaks, vodka, or real estate, the man whose business school and nonprofit organization were court-ordered to shut down, the man who bankrupted casinos and apartment houses…did we really think that guy could make decisions that would benefit the world’s largest economy? If we did, we were wrong.
“Believe me: We’re in a bubble right now. And the only thing that looks good is the stock market — but if you raise interest rates even a little bit, that’s going to come crashing down. We are in a big, fat, ugly bubble. And we better be awfully careful.”
— President Trump, quoted by the Washington Post, during the first presidential debate in September 2016.
Bloomberg: “Trump mentions the stock market almost daily in tweets or public remarks, taking direct credit for record highs by the Dow Jones Industrial Average and other indices. But only about 14 percent of U.S. families directly own stocks, an asset class dominated by the country’s top earners, according to the Federal Reserve. Meanwhile, the president has also rolled back efforts to expand retirement savings options to more middle-class and low-income workers.”
Amount the Dow Jones Industrial Average fell the day after the series finale of “Mad Men.” A study of 165 TV series finales shows that the wave of negative mood caused by the end of a popular and beloved show reduces the net demand for risky assets and decreases aggregate stock returns, says Gabriele M. Lepori of Copenhagen Business School. Specifically, if the number of viewers of a finale is 1 standard deviation above Lepori’s sample average, stock returns fall approximately 25 basis points the next day, all else constant. The finale of the drama “Mad Men” drew 3.3 million live and same-day viewers.
Imagine the firestorm that would be raging on Republican propaganda outlets right now if the stock market had dropped 2.2 percent within 24 hours after Democrats had voted unanimously not to raise the nation’s debt ceiling.
The entire right-wing noise machine — from Fox & Friends to Limbaugh, from Hannity to O’Reilly — would be singing the same refrain: The stock market has sent a clear message of disapproval over the Democrats’ irresponsible vote. Whether that assertion was true would not matter. They would make it true simply by unanimously agreeing that it was.
But because it was Republicans who voted irresponsibly, right-wing media sees no relationship between the vote and market drop.
And, of course, neither does the “liberal” lamestream corporate inside-the-Beltway media.
According to Rachel Maddow in the clip above — and according to the chart from Jed Lewison at DailyKos below — the stock market certainly is doing well under the socialist jackboot of Pres. Obama’s anti-capitalist policies.
As Maddow said, referring to the chart on her MSNBC show last week, if you focus on the line going up after the inauguration of Pres. Obama, “Regardless of how you personally are doing, this part of our nation is living large. Despite what you hear about the economy at home, the stock market is in tall cotton.”
Maddow pointed to this article from McClatchy to explain why middle-class families and small businesses find themselves relegated to the short cotton while mega-corporations and the stock marketeers are availing themselves of the tall rows: