Trump and the stock market

[g5000]

Here's the thing about leverage, which Trump's federal regulators could actually do something about if the fucker would get off his fat ass.

The thing about leverage is that when the value of your collateral begins to tank, then your creditors begin making collateral calls, demanding cash up front to offset the loss in value of your collateral.

If you are way over-leveraged, and your collateral has seriously tanked, then you won't be able to find enough cash. When that happens, it is like blood in the water, and the entire planet turns on you, your stock plummets to the floor, and your company disappears in the wink of an eye.

Then the market begins wondering who else has a liquidity problem. It becomes a "rush to the exits".


Regulators can minimize this effect AHEAD OF TIME, by stopping assholes from overleveraging themselves.

Bush did the exact opposite. He actually allowed the broker-dealers to DECREASE their capital reserves.

When Lehman went under, it was leveraged something like 70 times.

Private/corporate debt is at record high numbers, kids. Way, way higher than before the 2007-2009 crash. Way higher.

So as the value of stocks (which are used as collateral) starts to tank, or the value of bonds which were issued during the ZIRP/QE years begin to devalue as interest rates rise, then watch out.


Trump and his regulators better start taking a hard look at collateral chains. And fast.

 

[McRocket]

I do think we are headed into a recession and Trump doesn't have anything to do with it.

It will be the Greenspan, W, Obama, Bernanke recession.

If there was one person responsible for the housing bubble it was Greenspan. W and Obama helped create TARP. Obama spearheaded the porkulas package. Bernanke kept on QEing.

Add to that many of these tech companies are WAY over valued.

I almost completely agree.

Except Trump does have some responsibility for the markets.

His ridiculous - and needless - trade war rhetoric has been hurting the economy almost all year.
He should have done what he promised and cleaned out the Fed...he didn't.

I agree with all the things you say...except for saying Trump 'doesn't have anything to do with it'.

Trump's trade war and everything else you can credit with him might/will cause the recession like the assassination of Archduke Franz Ferdinand caused WW1.

It did, but everything was at such at a boiling point that it was inevitable.

I agree it was probably inevitable.

But the ferocity of it is not being helped at all by Trump.

He should be balancing the budget, ending the Fed's full employment mandate, stopping the 'new', cheap money that continues to slosh into the economy, drop the nonsensical trade war rhetoric/tariffs and warn people about what is probably to come - so they could prepare. He is doing none of these.
All of these things will make the upcoming mess noticeably worse than it could have been otherwise.

Of course he has 'something to do with it'...he is increasing its downside.


I sense your mind is closed on this - that you simply cannot see that Trump does have something to do with what is coming (though not the largest part - definitely. I would put that on the Fed).
So there is no point in further discussion on this.

BTW, I am an indy and despise both major parties.


We are done here...good day.

I agree the Fed has the most culpability. I even started a topic years ago about the Fed's massive doomsday bond bubble machine.

QE and ZIRP went on for way, way too long. Now our banks are even more leveraged and even more greatly Too Big To Fail. Except now they are Too Big To Save. Not even the federal government will be able to save them.

Meanwhile, Trump is spending our future descendants' money like there is no tomorrow. Running up YUGE deficits.

And the pseudocon rube herd remains dead silent about that. After eight years of screaming about Obama's spending.

Imagine that!

The thing that makes me even more frustrated at Trump is he understood at least some of this during the election.



And he knew that the Fed was largely to blame. I actually thought that maybe he would not be too terrible at that point...at least with the economy.

But soon after he took office - he dumped it all. Changed course completely. And went all political. And, at that moment, he was TOTALLY worthless to me as POTUS.

He probably could not have stopped the mess that is surely coming. But he could have helped America prepare for it and not made things just that much worse.
But no - he chose his political career rather than saving America from added pain.
The minute he did that was the minute - IMO - that he added his name to the long list who are to blame for the financial nightmare we will probably face one day.

 

[forkup]

Here's the thing about leverage, which Trump's federal regulators could actually do something about if the fucker would get off his fat ass.

The thing about leverage is that when the value of your collateral begins to tank, then your creditors begin making collateral calls, demanding cash up front to offset the loss in value of your collateral.

If you are way over-leveraged, and your collateral has seriously tanked, then you won't be able to find enough cash. When that happens, it is like blood in the water, and the entire planet turns on you, your stock plummets to the floor, and your company disappears in the wink of an eye.

Then the market begins wondering who else has a liquidity problem. It becomes a "rush to the exits".


Regulators can minimize this effect AHEAD OF TIME, by stopping assholes from overleveraging themselves.

Bush did the exact opposite. He actually allowed the broker-dealers to DECREASE their capital reserves.

When Lehman went under, it was leveraged something like 70 times.

Private debt is at record high numbers, kids. Way, way higher than before the 2007-2009 crash. Way higher.

So as the value of stocks (which are used as collateral) starts to tank, or the value of bonds which were issued during the ZIRP/QE years begin to devalue as interest rates rise, then watch out.


Trump and his regulators better start taking a hard look at collateral chains. And fast.

Honestly? I'm willing to give you any odds you want on the chances that Trump will attempt to regulate the banks. The Republican mantra has been the markets will take care of itself if left to their own devices forever. If all previous examples to the contrary hasn't convinced them what makes you think they are capable of changing their mind?

 

[ElmerMudd]

Is the OP intellectually dishonest, trolling, critically thought challenged and/or a liar? Simple terms for idiots:

Let's say you had cancer and lost 80 pounds off a stature of 200 lbs. It required 8 years to regain 70 pounds while under Obama's care. Why would there be such great weight gain, could it be because you had reached rock bottom? In two years you gained another 20 under Trump's care. Does that mean you performed better under Obama's care, and are they apples to apples or apples to oranges?

Say a baseball team had a losing record. They won 40 and lost 80. Then Obama managed them to 60 wins and 60 losses, just missing the post season. Trump managed them to 70 wins and 50 losses, and they won the world series. According to the OP, Obama out-performed Trump in percentage growth, and there's a graph to "prove it".


BTW rock dummies, interest rates have a DIRECT impact on the stock market. They were historically low on Obama's watch, because they understood an increase would devastate the market and housing. The rates rose immediately once Trump was inaugurated, probably because of consumer confidence in Trump. They're still too low, but increases show some correction.

This goof ball is a Trump apologist. Truth makes no difference. He is a minion without a brain of his own.

 

[The Purge]

And for what, 6 years of the mulattos dictatorship the FED INTEREST RATE WAS EFFECTIVELY ZERO!

How many times has the FED RAISED RATES UNDER TRUMP?....Logic and common sense lacking in the ABNORMAL mind!

It was a different economy, genius.

So, in your pea sized brain, the FED RATES have nothing to do with the market.....ABNORMAL LOGIC 101

I'll tell you who has a lot to do with the markets, according to Trump: Trump boasts: 'The reason our stock market is so successful is because of me'

And he's correct of course. BUT. you are a smart child and know that just because he lowered unemployment and brought back jobs!

3 Million People Have Found Jobs Since Trump Took Office
The Heritage Foundation

Jun 1, 2018 · The U.S. economy added 223,000 jobs and the unemployment rate reached its lowest level since 2000, dipping to 3.8 percent.

 

[my2¢]

I don't give presidents very much credit/blame for markets ups-and-downs. Of course Trump taking credit for a bull market that had been going on for a record number of years was bound to bite him in the ass with some folks.

 

[Rocko]

I don't give presidents very much credit/blame for markets ups-and-downs. Of course Trump taking credit for a bull market that had been going on for a record number of years was bound to bite him in the ass with some folks.

Trump takes credit for everything and doesn’t take responsibility for anything. It doesn’t mean he’s a bad president. He’s just a troll.

 

[Hutch Starskey]

I do think we are headed into a recession and Trump doesn't have anything to do with it.

It will be the Greenspan, W, Obama, Bernanke recession.

If there was one person responsible for the housing bubble it was Greenspan. W and Obama helped create TARP. Obama spearheaded the porkulas package. Bernanke kept on QEing.

Add to that many of these tech companies are WAY over valued.

Greenspan left in 2006, fool.

 

[Hutch Starskey]

You are one of the stinkiest of the rotten stenched hypocrites on this forum.

Did you ever take that shower we talked about? Seriously, it's not so bad.

Great: DOW 25,000!!...

That was you. You started that topic.

You gave the credit to Trump. Your first sentence, "Trump makes it look so easy:"


Where's your topic about Trump crashing the Dow back below 25,000?

The stench of hypocrisy is all over you, dipshit.

Trump got it up to 27,000 and now it's at 24,500. Suck it up buttercup, and for God's sake, take that fucking shower! The stench will go away, especially if you use soap.

Trump got it up to 27,000 and now it's at 24,500.

^Straight up retarded logic.

So, earning nothing for 2018 is great because the market was once up to 27k?

 

[Harpy Eagle]

You are one of the stinkiest of the rotten stenched hypocrites on this forum.

Did you ever take that shower we talked about? Seriously, it's not so bad.

Great: DOW 25,000!!...

That was you. You started that topic.

You gave the credit to Trump. Your first sentence, "Trump makes it look so easy:"


Where's your topic about Trump crashing the Dow back below 25,000?

The stench of hypocrisy is all over you, dipshit.

Trump got it up to 27,000 and now it's at 24,500. Suck it up buttercup, and for God's sake, take that fucking shower! The stench will go away, especially if you use soap.

So, in the end all Trump has done is get it to 24,500.

 

[ElmerMudd]

I don't give presidents very much credit/blame for markets ups-and-downs. Of course Trump taking credit for a bull market that had been going on for a record number of years was bound to bite him in the ass with some folks.

Trump takes credit for everything and doesn’t take responsibility for anything. It doesn’t mean he’s a bad president. He’s just a troll.

Trump is a bad President.
He can take full responsibility excusing despots who kill like Putin, Kim Jung Un and MBS and dumping on the free world democratic countries.
He wants to make us more like Russia, North Korea and Saudi Arabia than like Japan, France, South Korea, Canada, Germany, Italy, Spain, UK etc.
And he will be successful unless stopped.

 

[debbiedowner]

That will be preciously what all his little sycophants will do, parrot his blame.
Usual M.O. for them.

Boy oh boy, do the pseuedocons fucking HATE it when their benchmarks come back to bitch slap them in their slack little faces.

And yet they never learn! They keep making new ones which will also come back to bite them.

I call them tards for a reason.

If the dow hits 30k are you gonna say Trump you da man? Probably not, piss drinker

I hope the Dow does hit 30,000. That would please me very much. It would be great for my portfolio.

I am more worried about what Trump is doing to stop the next recession from turning into a major catastrophe. Probably nothing. He'll just blame the Democrats, and you rubes will parrot that.

Or can you tell us what Trump is doing to stop the next recession from turning into a catastrophe?

Hey they can't help it, they would have followed Jim Jones if he'd asked them? They just ain't right.

Shit they back him when he bad mouths Admirals and Generals and they will back him when the very near recession hits. Christ they will back him when they do their taxes in 2019 and 2020. They would eat his shit if asked them.

 

[sartre play]

Noticeably less bragging about Trump & the stock market on this site, its not really funny, the huge up & down swings are nerve racking.

 

[Rambunctious]

Stupid made up fake graphs...every idiot lib has one....

economic comparison graphs by design are limited on important information....and the libs know it but break em out anyway so the dumb non thinkers will slop it up and post it on a message board.....

 

[Mr.Blonde]

I do think we are headed into a recession and Trump doesn't have anything to do with it.

It will be the Greenspan, W, Obama, Bernanke recession.

If there was one person responsible for the housing bubble it was Greenspan. W and Obama helped create TARP. Obama spearheaded the porkulas package. Bernanke kept on QEing.

Add to that many of these tech companies are WAY over valued.

Greenspan left in 2006, fool.

No sh!t Sherlock. Greenspan started the concept of "too big to fail" in 98 and the "Greenspan put". He also was the one who started keeping interest rates low for too long after the dotcom bubble and 9/11.That is one of the main contributors to the housing bubble.

Bernanke kept those disastrous policies in place.

 

[ElmerMudd]

Stupid made up fake graphs...every idiot lib has one....

economic comparison graphs by design are limited on important information....and the libs know it but break em out anyway so the dumb non thinkers will slop it up and post it on a message board.....

The graph is a straightforward breakout of %market growth under recent Presidents. You cannot spin the numbers. You are an absolutely stupid fricking idiot.

 

[ElmerMudd]

Stupid made up fake graphs...every idiot lib has one....

economic comparison graphs by design are limited on important information....and the libs know it but break em out anyway so the dumb non thinkers will slop it up and post it on a message board.....

The graph is a straightforward breakout of %market growth under recent Presidents. You cannot spin the numbers. You are an absolutely stupid fricking idiot.

I do not mean to hurt your feelings Ramb but I am sure you have been called that many times and are no longer sensitive to it.

 

[Rambunctious]

I do not mean to hurt your feelings Ramb but I am sure you have been called that many times and are no longer sensitive to it

Coming from rubes and Obama loving dupes like you I wear it like a badge of honor.....

 

[boilermaker55]

What are you going on about? My statement was proving a point about the delusional way people try to only take credit when it fits their beliefs. To bad you didn’t understand. Also don’t assume like you have about where I live. It shows how stupid you are!
Oh,wait. You seem to relish in being a sycophant. Nice job!

But that butt-head hero of yours takes all the credit when the stockmarket was rising.
Check it out and you will see . Yes he did.
So why not take this part of it all?
Tell us.
And it was just reported that for the year, the stockmarket is in the RED.

Another empty butt hurt thread. Thanks for the laughs Elmo dud.

Seriously, are you that childish in your thinking? Glad to see you are as childish as the President, great goal.

Facts are facts and if you want to play childish games more power to you, you nuts are the ruin of America. Maybe your next goal should be growing up.

 

[Papageorgio]

What are you going on about? My statement was proving a point about the delusional way people try to only take credit when it fits their beliefs. To bad you didn’t understand. Also don’t assume like you have about where I live. It shows how stupid you are!
Oh,wait. You seem to relish in being a sycophant. Nice job!

But that butt-head hero of yours takes all the credit when the stockmarket was rising.
Check it out and you will see . Yes he did.
So why not take this part of it all?
Tell us.
And it was just reported that for the year, the stockmarket is in the RED.

Another empty butt hurt thread. Thanks for the laughs Elmo dud.

Seriously, are you that childish in your thinking? Glad to see you are as childish as the President, great goal.

Facts are facts and if you want to play childish games more power to you, you nuts are the ruin of America. Maybe your next goal should be growing up.

I don't think Presidents effect the market that much, the economy runs in cycles, always has and always will. You don't like it too bad, keep crying, it's so fun to watch the meltdowns.