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Sun 13 Nov, 2016 10:00 pm
Many pundits are saying that the stock market will lose 50% of their value "soon."
I'm not sure what that means. Very simply, Economics is not science. There's no way to measure something that's always in flux. However, we do know that our economy is still growing at 1.6%; that's better than most economies of the developed countries. China and India are growing at better rates, but most of their citizens live in poverty, and they're the two largest country by population.
As long as over 70% of our economy is based on consumption, and that doesn't change, we will maintain our economy. The biggest problem now is the increasing value of our currency which makes it more difficult to trade with other countries.
The feds have been talking about increasing the interest rate, but I believe that would be the wrong move when our economy is so fragile.
Rather, it's a good time for the government to spend on our infrastructure. Money spent now will increase demand in other areas of our economy, and the circulation of money will stabilize our economy.
@cicerone imposter,
Just wait till Trump gets his phone back and twits after midnight...
@cicerone imposter,
Well good old Herbie Hoover was part of a financial crash down, I expect nothing less from Trump.
@Sturgis,
That's a good possibility, but I'm flabbergasted at the stock markets' performance after the results were out.
@Sturgis,
Trump's economic plans will destroy our economy. How should we prepare for it?
http://www.theatlantic.com/business/archive/2016/05/donald-trumps-economy/481743/
This is the reason why the faculty and students at Wharton disavowed Trump as a fellow graduate of their school. Trump doesn't reflect their values.
@cicerone imposter,
Fortunately, while there are things a president can do, there are also things a president cannot do. I'm not sure when he will make that discovery.
@roger,
True; but with a republican congress ................
@cicerone imposter,
Maybeso. Still, I recall Trump disavowing the party maybe a week or so before the election. In any case, I don't think we owe him a thing.
Not that I would try to make predictions about congress, of course. Just thinking the honeymoon period came and went early on the 9th of November.
@roger,
roger wrote:
... I'm flabbergasted at the stock markets' performance after the results were out.
Most of the activity (!) is due to the selling of certain bulks of stocks and the buying of stocks that some people think will be critical to Trump's plan for infrastructure....etc. Bank stocks are up, stocks for heavy equipment ( Dere, etc ) are up, and many healthcare related stocks are up, drug companies etc.
It's a flux, notcarefully thought out by very many investors, who by the way are mostly day-traders.
Every dollar spent on paving a highway, is a dollar not spent on medical care, medical research or even medical education.
Do folks want more bridges and highways, or do they really want a cure for diabetes, cancer, heart disease, kidney failure ...etc?
Folks can't have it both ways. Will people be happy while driving down a new, shiny, well-built highway, while they're suffering from lung, prostate, uterine cancer, for which there may not be a readily available cure?
Or, more to the point...will folks stop complaining about the price of drugs, when they get to drive across America over new highways and bridges?
Which is more important? Health or highways?
Also, Ryan plans on "modifying Medicare". Result will be elderly folks, lacking Medicare benefits, but oh so happy! driving down that shiny,new highway built by the "working men and women of middle class America".
Think coal miners! Oh how happy they will be with Trump, who doesn't want to close the coal mines. How happy to be receiving a nice paycheck, while suffering from lung cancer, because lung cancer research is and will continue to be underfunded in America's institutes of higher education.
But...oh those nice shiny bridges and highways!!
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