PILOT SPIN
Spin Zone => Spin Zone => Topic started by: President in Exile YOLT on January 25, 2017, 07:58:22 AM
-
Because Trump
http://blogs.wsj.com/moneybeat/2017/01/25/dow-hits-20000-for-first-time/
-
Because Trump
http://blogs.wsj.com/moneybeat/2017/01/25/dow-hits-20000-for-first-time/
Yea, but we were told this:
I'll vote for HRC for one simple reason, a win for her will keep the stock market calm, priority is my retirement fund and a Trump win could cause the markets to react negatively and tank everyone's 401k.
So much for prophesy.
-
Ah yes, the single data point 3 days into the Presidency, lol. I think I'll reserve any judgment on his impact in the financial markets for a good year or more, once the volatility from having a new President has worn off. If he begins to institute import tariffs or screws up on the TransPac/NAFTA agreements, I have a feeling the DOW won't be painting nearly as rosy a picture.
-
Ah yes, the single data point 3 days into the Presidency, lol. I think I'll reserve any judgment on his impact in the financial markets for a good year or more, once the volatility from having a new President has worn off. If he begins to institute import tariffs or screws up on the TransPac/NAFTA agreements, I have a feeling the DOW won't be painting nearly as rosy a picture.
The TPP is already history (as far as US participation). As far as NAFTA, it's been a disaster for the US economy and Mexico and Canada have already said they are willing to come to the table and renegotiate.
-
Ah yes, the single data point 3 days into the Presidency, lol. I think I'll reserve any judgment on his impact in the financial markets for a good year or more, once the volatility from having a new President has worn off. If he begins to institute import tariffs or screws up on the TransPac/NAFTA agreements, I have a feeling the DOW won't be painting nearly as rosy a picture.
I think the threats of tariffs is enough, because people believe he will actually do it. Plus he is providing incentives to companies to return some manufacturing to onshore. Besides, if public companies in the Dow were perceived to be at great risk due to Trump, the market wouldn't be going up, it would have crashed.
-
This is good! 2016 was a pretty good year for the Dow, up 4000-some points. Trading volume in December/January very healthy. Confidence and perception can be wonderful things.
-
Confidence and perception can be wonderful things.
That's what drives the market for better or worse.
-
This is good! 2016 was a pretty good year for the Dow, up 4000-some points. Trading volume in December/January very healthy. Confidence and perception can be wonderful things.
Yep. Trump is continuing Obama's tradition of making the rich, richer.
The difference is that Trump will also be making the poor less poor and more self reliant.
-
Yep. Trump is continuing Obama's tradition of making the rich, richer.
LOL! That tradition predates Obama by a wide margin.
The difference is that Trump will also be making the poor less poor and more self reliant.
We shall see....
-
I think the threats of tariffs is enough, because people believe he will actually do it. Plus he is providing incentives to companies to return some manufacturing to onshore. Besides, if public companies in the Dow were perceived to be at great risk due to Trump, the market wouldn't be going up, it would have crashed.
This, I've been telling people the beauty of what Trump is doing by threatening tariffs. He really has no ability to impose them and would start a trade war if he did. But just the threat is enough to be effective. Plus the promise to cut the corporate tax rates also has an affect. Just like Obama's constant call to raise taxes and his eventual tax increases hobbled the economy under his reign.
-
LOL! That tradition predates Obama by a wide margin.
We shall see....
Sure, that has been going on forever. But as Neil Bortz used to say:
"The rich keep getting richer and the poor keep getting poorer,
because the rich keep doing the things that make them rich,
and the poor keep doing the things that make them poor".
Except in an oligarchy like Russia, where the rich really are made richer by a corrupt government. But here, all the government can do is help establish the conditions that allow the people to succeed or fail on their own.
The reason I blamed Obama is that his administration set an unprecedented environment for the rich to get richer and the poor to get poorer.
High taxes forces companies to look for ways to cut expenses. Offshoring is one. Leverage is another. Borrowing at near zero interest rates is a fantastic expense reduction for the rich. And "quantitative easing" assured that anyone wealthy enough to own stock would get wealthier. (I personally thank Obama for that).
And at the same time as more and more middle class jobs are being outsourced, the Obama administration's policies made it preferable to go on government assistance than to work. A welfare based economy is a model that is doomed to spiral into more and more poverty and more and more government dependence.
As for Trump, I agree with you. We will see. But I believe he is creating an environment that will allow everyone to succeed without fostering more poverty and government dependence. Ask the people of Michigan what they think!
-
This, I've been telling people the beauty of what Trump is doing by threatening tariffs. He really has no ability to impose them and would start a trade war if he did. But just the threat is enough to be effective. Plus the promise to cut the corporate tax rates also has an affect. Just like Obama's constant call to raise taxes and his eventual tax increases hobbled the economy under his reign.
The fear on the part of business leaders and investors large and small of what Obama and his lapdog Congress might do the detriment of various industries (labor costs and regs) is what stalled economic growth and job creation for almost a decade.
-
Ah yes, the single data point 3 days into the Presidency, lol. I think I'll reserve any judgment on his impact in the financial markets for a good year or more, once the volatility from having a new President has worn off. If he begins to institute import tariffs or screws up on the TransPac/NAFTA agreements, I have a feeling the DOW won't be painting nearly as rosy a picture.
And of course we know the big run up to 20,000 since Nov 9th was due to Obama. ;)
-
This, I've been telling people the beauty of what Trump is doing by threatening tariffs. He really has no ability to impose them and would start a trade war if he did.
It seems Trump can legally impose tariffs without congressional approval, since congress granted that power to the executive branch a while back (under certain "narrow" circumstances that turn out to have been not so narrow, as evidenced by past presidents using the granted powers):
http://money.cnn.com/2017/01/23/news/economy/trump-tariff-power/ (http://money.cnn.com/2017/01/23/news/economy/trump-tariff-power/)
-
Sure, that has been going on forever. But as Neil Bortz used to say:
"The rich keep getting richer and the poor keep getting poorer,
because the rich keep doing the things that make them rich,
and the poor keep doing the things that make them poor".
There is a fair amount of truth to that!!
Except in an oligarchy like Russia, where the rich really are made richer by a corrupt government. But here, all the government can do is help establish the conditions that allow the people to succeed or fail on their own.
I think we agree that a useful and necessary role of government is to "level the playing field" to allow individuals and business to thrive.
The reason I blamed Obama is that his administration set an unprecedented environment for the rich to get richer and the poor to get poorer.
Hmmm... thought Obama was evil to the rich, all that wealth distribution stuff. If he was so good the the rich, why didn't that trickle down?
High taxes forces companies to look for ways to cut expenses. Offshoring is one. Leverage is another. Borrowing at near zero interest rates is a fantastic expense reduction for the rich. And "quantitative easing" assured that anyone wealthy enough to own stock would get wealthier. (I personally thank Obama for that).
And at the same time as more and more middle class jobs are being outsourced, the Obama administration's policies made it preferable to go on government assistance than to work. A welfare based economy is a model that is doomed to spiral into more and more poverty and more and more government dependence.
Can't argue that taxes are part of the process if a business wants to off-shore. That being said, the cost of labor, availability of raw materials and logistics to markets are far more important. The top corporate tax rate hasn't changed much since 1990 and off-shoring (or foreign competion) has been eroding manufacturing jobs since the 1970's. If anything, automation has done more to eliminate jobs than any other factor (IMHO!!) "Re-shoring" of jobs is also an event had has started a while ago:
https://secure.marketwatch.com/story/us-flips-the-script-on-jobs-reshoring-finally-outpaced-offshoring-in-2014-2015-05-01
Can't argue that a welfare based economy is doomed to failure. Don't believe we are anywhere close to that.
As for Trump, I agree with you. We will see. But I believe he is creating an environment that will allow everyone to succeed without fostering more poverty and government dependence. Ask the people of Michigan what they think!
Let's hope so.
-
The fear on the part of business leaders and investors large and small of what Obama and his lapdog Congress might do the detriment of various industries (labor costs and regs) is what stalled economic growth and job creation for almost a decade.
Yes, that too.
-
It seems Trump can legally impose tariffs without congressional approval, since congress granted that power to the executive branch a while back (under certain "narrow" circumstances that turn out to have been not so narrow, as evidenced by past presidents using the granted powers):
http://money.cnn.com/2017/01/23/news/economy/trump-tariff-power/ (http://money.cnn.com/2017/01/23/news/economy/trump-tariff-power/)
Thanks Jim, I was wondering if Trump could do it without congress as I was writing but figured someone would bring it up if it were true. This gives Trump's threats even more bite.
-
Thanks Jim, I was wondering if Trump could do it without congress as I was writing but figured someone would bring it up if it were true. This gives Trump's threats even more bite.
Suspect our trading partners have a very clear idea of what the President can and cannot do and the implications. Not so certain that threats will hold much weight.
-
Suspect our trading partners have a very clear idea of what the President can and cannot do and the implications. Not so certain that threats will hold much weight.
I think the threats will carry a lot of weight, simply because they believe Trump will carry through. Unlike Obama and his red line.
-
Suspect our trading partners have a very clear idea of what the President can and cannot do and the implications. Not so certain that threats will hold much weight.
I think our trading partners are the least of our problem. Most of our problems are home grown in my opinion and they originate in DC and at the state level.