@edgarblythe,
Quote:Question: How do you explain the “Trump rally” on Wall Street? After blowing past the 19000 mark just 14 trading days after Election Day, the Dow Jones Industrial Average blew through 20000 today.
Answer: Financial markets expect higher corporate profits -- stemming from lower corporate taxes, fewer regulations, and major infrastructure spending.
So regulations do play a roll in the economy not doing so well. Business's are excited about being able to actually work and not spend time and money on fruitless regulations, like the ones overturned by a Federal Court.
Quote:Question: But what about Trump’s talk about new trade barriers, and executive orders barring immigration? Won’t these reduce corporate profits?
Answer: Wall Street doesn’t believe he’ll follow through on erecting new trade barriers. And his executive orders on immigration affect such a small portion of the workforce they won’t reduce profits.
They won't reduce corporate profits because they will be saving money on pointless regulations. They are also not bothered by the immigration issue because they understand the difference between legal and illegal immigration and putting a halt to illegal immigration will not effect the workforce of legal immigrants.
Quote:Question: So will the rally continue?
Answer: No. Trump’s belligerent and bizarre talk – not just about trade, but also about the “obsolescence” of NATO and his indifference toward the European Union -- is rattling the global economy, causing uncertainty from London to Tokyo. Uncertainty is never good for financial markets. It will drive more global savings into the United States, pushing up the dollar and thereby making American exports less competitive internationally.
Speculation at it's worse. He is assuming that EU nations funding more of their own protection will be bad for business and will shake the markets. I would think more stability in the EU would be good for the markets.
Quote:Question: And what about American workers? Will they benefit?
Answer: No. Trump is doing absolutely nothing to create more and better jobs. His bullying of auto and appliance makers is purely for show. A trade war would hurt American jobs. A higher dollar will hurt jobs as well. Trump’s repeal of Obamacare will harm millions of American workers, who will have to pay more for health insurance.
The companies will be doing the job creation, the govt does nothing to help create more jobs when regulations are high.
Millions of hard working Americans had their insurance effected by the ACA, repealing it will help the average American worker who saw their rates climb. This was also the same guy who agreed that the ACA would save the average American $2500 a year on insurance, almost no one saw those savings. The majority saw increases.
Quote:Question: So the “Trump rally” has nothing to do with the real economy?
Answer: Absolutely nothing.
Of course he has to say this. If he thought Trump was going to be good for the economy, he would be proving that he doesn't really understand the economy, which he has shown himself to do often. This guy in only a rock star in the world of leftist politics.
