Trump Discusses Firing Fed’s Powell After Latest Rate Hike, Sources Say
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Everything is closer to the bottom than the top. This market downturn is artificially caused by government policies and not anything to do with the intrinsic health of the economy. Expect a shallow dip and a quick recovery.
Sounds like the mortgage crisis in 2008. Government created but everyone felt the pain.
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Not at all. That wasn’t government created. It was created by reckless business lending practices.
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Nowhere near 2008. Did you have people ghosting jobs and interviews in 2008?
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Greenspan and Bush deliberately pushed risky mortgages
Nobody pointed a gun to anyone’s head forcing them to purchase subprime mortgages.
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They were free. In fact some people never made a payment. They should never have been allowed. If the rules had been tighter the 2008 Great Recession would have never happened. To many if Hillary had been elected the 2019 recession would’ve never happened. Of course it may have happened in 2018.
Quick recovery won’t be there.
For example: Shutdown will also affect all government contracts, no government contract companies will be paid, that includes all defense contract companies such as LMT, BA…etc. Their monthly, weekly checks won’t be cleared until Shutdown is lifted.
Lot of uncertainties starting from Shutdown, firing Fed (new), trade war, Stalemate government, flattening yield curve, undue IPOs coming soon (which will face failures)
The last two are going to rout the banks failure which will have domino effect.
Do not expect S$P 500 is going to stop at 20% from peak. We do not know where it will stop with all the uncertainties.
The recovery is too long like 2012-2018.
Trump will seriously do something like that as J.Powell (or other FEDs) are not going to stop raise rates in Mar and Jun 2019.
No matter what Trump does, market is already destined to inflict pains, no way to stop the slide.
There is a way to stop the slide … Get rid of uncertainty. Markets hate uncertainty.
Where is the greatest source of uncertainty right now? Trump.
- Handing our geopolitical foes Russia/Iran a surprise military victory by pulling out of Syria/Iran
- Forcing out level headed secretaries like James Mattis (who can be trusted to not start nuclear war)
- Interfering with the Fed, which is supposed to be an apolitical body, through bulliying and politicization
- Ratcheting up global tension and resultant Chinese backlash against American businesses (Apple) by getting Canada to arrest Huawei’s CFO
- Unsuspectingly harming the American heartland - soybean producers - through global trade wars
- Bullying, politicizing, and cowing American businesses - GM - when they try to learn from their past mistakes and do what is right for their shareholders
- Sowing hysteria and eliminating trust in government by embracing chaos (shutdown) and last minute flip flopping on budgetary legislation
All this represent massive uncertainty. If this kind of government were making decisions in an emerging economy, all conventional wisdom would say, “Caution. Do not invest in this country unless you have a strong stomach - this is not a business friendly economy as rule of law is weak.”
Unfortunately this is happening not in an emerging economy, but at home, here in the USA.
Perception lags reality, and here, now, perception is starting to catch up with reality, two years after 2016. Get rid of the source of uncertainty and you can eventually get the markets to settle down.
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Most of the rules changes were updates to the community reinvestment act made under Clinton.
We can not change dog’s tail (Both parties won’t yield).
Trump is right on trade war, tax cuts, but may not be right on others such as FED firing issue, Shutdown…
Congress (esp Democrats are deliberately putting stops) on his initiatives. This is expected (as it happened during Obama period too) stalemate government.
Let Mr.Market do his own fearful ride and free fall to continue. Better to wait for deepest red and then pick up.
You miss one unsaid point 
Is also his “uncertainty” style.
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We can not change dog’s tail and uncertainty will continue, that is practical.
The reason I said “Trump is Right one few things”, he will be firm, unyielding when he feels right.
Border wall is political for him. He won’t yield, neither Dems.
Why he wants to fire FED? Even if he knows what FED is doing is right, it will make US economy in to recession next two years. Lot of people will be laid off and that will include his fortress states blue collar workers land into jobless.
This means, he has challenges in election time (Nov 2020) when his chances are reduced by FED’s action. Here, he is not looking at economy/country, but his political gain is likely diminished by FED.
Not looking after us? Thought we elected him to do that!!!
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Yes, he is too selfish (what is in it for me kind of that?) as a politician ! His win is first, then country right ?
Then why do his supporters mindlessly defend whatever he say and do? How do they gain?
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It is not WHAT Trump says that causes uncertainty, it is HOW he says it. On many topics like immigration, interest rates, trade disputes with China, etc. Trump has the right idea. But the WAY he says stuff causes uncertainty.
We don’t need to change the dog’s tail. We just need to change the dog to get rid of uncertainty.
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All over world, Which politician does not do selfish work, tell me?