Dow falls 300 points as Trump worries escalate

[Kiri]

"Economy fluctuates, just as it has since time immemorial. News at 11."

Trump did take credit for every single DOW increase since his election, so it is only natural that people attribute a fall to him too, as a 'gotcha' moment of sorts.

However, as an economist, I do not think it is just normal fluctuation. The increase came -at least in part- from tax-cuts being promised etc so any information that decreases the likelihood of those happening has a negative impact. Mind you, that is just cause and effect, without any judgment.

[Macaquerie]

Trump did take credit for every single DOW increase since his election, so it is only natural that people attribute a fall to him too, as a 'gotcha' moment of sorts.

However, as an economist, I do not think it is just normal fluctuation. The increase came -at least in part- from tax-cuts being promised etc so any information that decreases the likelihood of those happening has a negative impact. Mind you, that is just cause and effect, without any judgment.

I think Wall Street just assumed that despite Trump's windbag antics, he'd mostly just be a clueless puppet that would sign a bunch of pro-business legislation, and the markets jumped on that basis. But just the sheer scale of the trainwreck over the last few months was really unprecedented and now there's virtually no chance of pushing through that agenda, or any agenda for that matter, since the entirety of the government apparatus will mostly be focused on Trump's scandals rather than setting policy.

Oh my...after nearly 4 months of wall street booming. The sky is falling! Kill the Nazis! Russia!

What are we supposed to do, not kill Nazis?

[Felya]

Oh my...after nearly 4 months of wall street booming. The sky is falling! Kill the Nazis! Russia!

Try 6 years... the bottom of the market crash was with Dow under 6500. Dow being nearly 20000 when Trump took office, doesn't mean wall street was booming for 4 months. Obama's didn't need having a segnificant tax cut on corporations that would be parallel to corporate valuation, but in fact cut down Bush tax cuts and instituted Wall Street regulations that Trump is breaking.

[Narwal]

The reason the stock markets are falling is because of the uncertainty of Trump remaining President and getting to the legislation he wants to do. This further proves that the Markets were going up directly because of Trump and his agenda.

Is this scenario bad for the US and our economy, yes. Can it rebound and will it rebound? Yes. Trump will either get removed and Republicans will move forward with tax reform, or Trump will remain and he will move forward with Tax reform. Either way, the Republicans/Trump will want to move past the current topics by pushing through popular legislation, that being, tax reform.

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Try 6 years... the bottom of the market crash was with Dow under 6500. Dow being nearly 20000 when Trump took office, doesn't mean wall street was booming for 4 months. Obama's didn't need having a segnificant tax cut on corporations that would be parallel to corporate valuation, but in fact cut down Bush tax cuts and instituted Wall Street regulations that Trump is breaking.

It was slow growth, something our investors will always find ways to do, but growth none-the-less. I don't think you can argue against the fact, however, that we've had quite a boom since Trump became President. Far outpacing anything under Obama. It goes to the point that many have said, that the regulations brought under obama were holding back growth that wanted to happen. He didn't create the slow growth, he slowed the growth we naturally have over time. In the same fashion, I don't believe Trump is creating growth. He's simply freeing the growth that our economy wants to make.

[Felya]

I think Wall Street just assumed that despite Trump's windbag antics, he'd mostly just be a clueless puppet that would sign a bunch of pro-business legislation, and the markets jumped on that basis. But just the sheer scale of the trainwreck over the last few months was really unprecedented and now there's virtually no chance of pushing through that agenda, or any agenda for that matter, since the entirety of the government apparatus will mostly be focused on Trump's scandals rather than setting policy.

Wall Street are not idiots, as I've said earlier in this thread. They are not the ones who saw a billionaire as president, be a way to get the middle America, working class voice. What they saw is a president that promised tax cuts to corporations and to remove wallstreet regulations. When he won, it meant that the likely hood of companies gaining value due to actions of government would increase. So, the market reacted in a way that would show an increase in value.

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It was slow growth, something our investors will always find ways to do, but growth none-the-less. Having watched my 401k over the last 6 years, I can tell you that with Trump coming in, growth really took off. It proves the point that many have said, that the regulations brought under obama were holding back growth that wanted to happen. He didn't create the growth, he slowed the growth we naturally have over time. In the same fashion, I don't believe Trump is creating growth. He's simply freeing the growth that our economy wants to make.

Then you need to talk to what ever firm handles your 401k. The 13000+ or 300% growth is the highest of any president in history. You are confusing wallstreet with GDP or avarage salary. Because those were slow, but the Dow has been skyrocketing. Why the GDP doesn't grow and your pay is stagnant as wallstreet is booming? Must be those regulations...

[Lenonis]

People are missing the significance here -- this drop indicates that the stock market is losing confidence that Trump will be able to do anything as president. Whether that's because he's impeached or turned into a lame duck due to resistance from the GOP being associated with him and his agenda is mostly irrelevant.

That, whether you like it or not, is a pretty big statement by a group of people whom, quite literally, put their money where their mouths are.

[Poopymonster]

I think Wall Street just assumed that despite Trump's windbag antics, he'd mostly just be a clueless puppet that would sign a bunch of pro-business legislation, and the markets jumped on that basis. But just the sheer scale of the trainwreck over the last few months was really unprecedented and now there's virtually no chance of pushing through that agenda, or any agenda for that matter, since the entirety of the government apparatus will mostly be focused on Trump's scandals rather than setting policy.



What are we supposed to do, not kill Nazis?

I think they have secret service protection, kinda hard to do that.

[Rasulis]

The market is already going back up.

[Reachie10]

It's going to get bad, get out now if you can.

[NED funded]

Trump did take credit for every single DOW increase since his election, so it is only natural that people attribute a fall to him too, as a 'gotcha' moment of sorts.

However, as an economist, I do not think it is just normal fluctuation. The increase came -at least in part- from tax-cuts being promised etc so any information that decreases the likelihood of those happening has a negative impact. Mind you, that is just cause and effect, without any judgment.

What's your specialization?

[Jeezy911]

The left trying to purposely sabotage the economy because "we hate Trump." Never in my life have a seen a group of people be so unhinged because they don't like the president. On the flip side, when another liberal wins, nothing will be left on the table. The rules have now changed to basically do anything possible to make that person look bad, Karma is going to be insane.

[Elegiac]

The left trying to purposely sabotage the economy because "we hate Trump." Never in my life have a seen a group of people be so unhinged because they don't like the president. On the flip side, when another liberal wins, nothing will be left on the table. The rules have now changed to basically do anything possible to make that person look bad, Karma is going to be insane.

How is 'the left' sabotaging the economy when the right wing is in power?

[Lenonis]

The left trying to purposely sabotage the economy because "we hate Trump."

That's an assertion that requires evidence.

The rules have now changed to basically do anything possible to make that person look bad, Karma is going to be insane.

You might have missed the memo that those particular rules changed when the GOP did so when Obama took office. Or, did you forget the whole "our one mission is to make him a one term president" and the like? Birther-ism? Unprecedented levels of obstruction?

Any of this ringing a bell? No? Alrighty then.

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How is 'the left' sabotaging the economy when the right wing is in power?

Jeezy911's rewriting of history and selective view of history is breathtakingly partisan even for these forums.

[Gestopft]

The left trying to purposely sabotage the economy because "we hate Trump."

Firstly: no.
Secondly: how? Dems have no power right now, so what levers could they be pulling to "sabotage" the economy?

Never in my life have a seen a group of people be so unhinged because they don't like the president. On the flip side, when another liberal wins, nothing will be left on the table. The rules have now changed to basically do anything possible to make that person look bad, Karma is going to be insane.

Where were you the last eight years when the right never shut up about Obama?

[Kiri]

What's your specialization?

International Economics with focus on institutional economics.

[Jeezy911]

You seem like the sort of person who has never once read an article about the economy before today.

You seem like the type of person who gets opinions from watching Colbert and calling it "News"

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How is 'the left' sabotaging the economy when the right wing is in power?

Didn't know you had to be in power to trade on the stock market? Is this real life?

[Elegiac]

Didn't know you had to be in power to trade on the stock market? Is this real life?

Are you seriously implying that the left wing is dumping shares to intentionally sabotage the economy.

[Deathquoi]

Fuck the business people and their stock market. Even if the whole thing crashed it wouldn't affect me much.

I know you think you're above things like "society" and "the economy" but you are very much not.

[stabetha]

Isn't the Dow higher than it was when he took over?

ssshhh facts don't matter when bashing Trump

[Felya]

I'd love to have some of what you're smoking.....

Dude... it's very good shit... all you have to do is visit this site or any side showing Dow jones history of the last 10 years... smoke it in:

http://www.macrotrends.net/1319/dow-...storical-chart