Trumponomics at work!

[Horatio Parker]

The Fed's been missing its inflation targets for years. Maybe someone should get a medal.

That'd be Greenspan. Thanks to the deflation of the housing market, inflation disappeared... for a bit.

Since he's the main guy behind the inflating in the first place, I guess it's something of a wash. But income inequality is still contributing to asset inflation, excuse me, appreciation.

 

[Jimmy Higgins]

The Fed's been missing its inflation targets for years. Maybe someone should get a medal.

That'd be Greenspan. Thanks to the deflation of the housing market, inflation disappeared... for a bit.

Since he's the main guy behind the inflating in the first place, I guess it's something of a wash.

Naw... can't blame him for the inflation bubble of the housing market. People knew what they were doing, getting ARM loans... all their fault for taking advantage of Greenspan and his low interest rates. All he wanted was to add some rational exuberance to the economy, just to see those low income people take that and turn it into irrational exuberance. *sobs*

 

[Horatio Parker]

Since he's the main guy behind the inflating in the first place, I guess it's something of a wash.

Naw... can't blame him for the inflation bubble of the housing market. People knew what they were doing, getting ARM loans... all their fault for taking advantage of Greenspan and his low interest rates. All he wanted was to add some rational exuberance to the economy, just to see those low income people take that and turn it into irrational exuberance. *sobs*

I think that's a Repug apology...the subprime market was targeted. They didn't wake up one morning and decide to buy expensive houses. They were pursued; it was policy.

 

[T.G.G. Moogly]

I doubt the economy is overheating. The tax breaks went primarily to savers. Inflation requires spending.

Wages are up slightly, but that's long overdue.

The Fed was already set to increase rates this year, the only question is how many raises.

Clearly the inflation is a serious threat and the market reacted to Paul Ryan's Tweet over the weekend parading an article about a woman getting an extra $1.50 a week thanks to the tax cut.

Jimmy, honestly, do you do stand-up?

 

[southernhybrid]

It's true that the possibility of rising inflation and higher interest rates, ( the 10 year note was about 2.8 yesterday ) have had an impact on the stock market, but let's be rational. The market rose about 25% last year. That's not normal. That is indicative of a bubble formation. I also believe that the fact that we have a very dysfunctional government, with a mad man at the helm is probably another factor as to why the market is suddenly becoming unstable. Will the government shut down this week? Will that add to the market instability? Will the fear

Sure, most large corporations have had good earning in the past few quarters, but with more inflation, higher wages etc. this too might be temporary. And, I haven't even mentioned the amount that is being added to the deficit as a result of the idiotic tax legislation.

Just look at the VIX. It was over 35 yesterday and this morning it was almost 50. That's very unusual.

 

[Jimmy Higgins]

I doubt the economy is overheating. The tax breaks went primarily to savers. Inflation requires spending.

Wages are up slightly, but that's long overdue.

The Fed was already set to increase rates this year, the only question is how many raises.

Clearly the inflation is a serious threat and the market reacted to Paul Ryan's Tweet over the weekend parading an article about a woman getting an extra $1.50 a week thanks to the tax cut.

Jimmy, honestly, do you do stand-up?

I wish... the Speaker of the House actually tweeted a link to a story about a woman who claimed to be getting $1.50 more a week... meaning she wouldn't have to worry about paying the Sam's Club membership. *sigh*

 

[Jimmy Higgins]

Since he's the main guy behind the inflating in the first place, I guess it's something of a wash.

Naw... can't blame him for the inflation bubble of the housing market. People knew what they were doing, getting ARM loans... all their fault for taking advantage of Greenspan and his low interest rates. All he wanted was to add some rational exuberance to the economy, just to see those low income people take that and turn it into irrational exuberance. *sobs*

I think that's a Repug apology...the subprime market was targeted. They didn't wake up one morning and decide to buy expensive houses. They were pursued; it was policy.

Oh yes they did. Poor blacks and browns (don't want to discriminate) woke up one morning and said 'We gonna take advantage of that old white cracka who runs the Fed.' Then... great recession. And all of us white folks were the victims.

You know, if Obama didn't sell these people on the idea that ABMs were a great deal during his presidency, maybe the Great Recession never happens.

Seriously, this has to be how right-wingers think.

 

[Opoponax]

Honestly, he's been in office around a year now. This is the transition period. Maybe this is some kind of correction that resulted from something Obama did? Who knows?

The problem of course is that Trump has been taking credit for the gains in the stock market for a long time before this. So either this dip in the stock market is his fault, or else he was lying all those other times before this when he claimed credit for the performance of the stock market.

Maybe this stock market decline is Trump's fault, and maybe it isn't. The important thing is that Trump supporters have put themselves in a box. If they insist that Trump was telling the truth all those times he took credit for the performance of the stock market, then they now have to blame Trump for this decline in the stock market. If they insist that this current decline in the stock market is not Trump's fault, then they just admitted that they and Trump were lying all those previous times they attributed rises in the stock market to Trump.

So no matter what answer conservolibertarians give, they reveal themselves to be full of shit, which is why they will probably use  special pleading fallacies to insist that the previous gains in the stock market are to be credited to Trump, but the current decline is to be attributed to Obama.

They're in and have been in full-on religious fundamentalist mode for a long time now: Trump gets all of the credit and none of the blame. This was established when Spicer said the employment numbers were fake under Obama, but real under Trump. And since then we've seen Trump take all the credit for the things that got done under Obama, and his fans fully believe him.

Now, it used to be a pretty convincing thing to be able to show people that no, 2+2 doesn't = 7. That was back when nearly all people cared about the factually correct answer. They don't care about that anymore. The answer is 7 or 142 or Purple. And on rare occasion, it is actually 4. But 4 is a matter of momentary convenience. An hour later, if the more suitable answer to 2+2 is 19, then it will become 19, and no amount of fancy shmancy librul bullshit is going to make it not 19. The next day it'll be 103 and the 19 of yesterday is Fake News.

The goalposts are on tracks and remotely controlled.

 

[funinspace]

Just look at the VIX. It was over 35 yesterday and this morning it was almost 50. That's very unusual.

I'd say that recent VIX quietness was the more unusual datum. Other than the occasional spike, it has been calming down since the 2008-9 financial crisis. I suspect that the VIX will be more jumpy this year...

One can click on the MAX function on this linky, and see back to the early 1990's:
https://finance.yahoo.com/chart/^VIX

 

[funinspace]

I think that's a Repug apology...the subprime market was targeted. They didn't wake up one morning and decide to buy expensive houses. They were pursued; it was policy.

Oh yes they did. Poor blacks and browns (don't want to discriminate) woke up one morning and said 'We gonna take advantage of that old white cracka who runs the Fed.' Then... great recession. And all of us white folks were the victims.

You know, if Obama didn't sell these people on the idea that ABMs were a great deal during his presidency, maybe the Great Recession never happens.

Seriously, this has to be how right-wingers think.

Yup, I have a redneck right-winger that was bitching about how the stock markets were doing so poorly under Pres. Obama roughly sometime in 2012...seriously.

 

[Playball40]

Significant wage growth has caused worries about inflation. The Republicans may have gone too far with their tax breaks. This may overheat the economy and then we’re all just working to break even. Also, there is some concern about having a new Fed Chair. The market needs to get a feel for this guy.

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

 

[Keith&Co.]

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

Yeah, my check went down ten bucks every payday...

 

[Playball40]

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

Yeah, my check went down ten bucks every payday...

Mine went down even more. This sucks. Not getting a tax refund for 2017 and won't likely in 2018 - and I still have 3 dependents. Pout. We paid over $20K in taxes.

 

[Horatio Parker]

I think that's a Repug apology...the subprime market was targeted. They didn't wake up one morning and decide to buy expensive houses. They were pursued; it was policy.

Oh yes they did. Poor blacks and browns (don't want to discriminate) woke up one morning and said 'We gonna take advantage of that old white cracka who runs the Fed.' Then... great recession. And all of us white folks were the victims.

You know, if Obama didn't sell these people on the idea that ABMs were a great deal during his presidency, maybe the Great Recession never happens.

Seriously, this has to be how right-wingers think.

Doh...missed your sarcasm...been too seerious lately....

 

[Jimmy Higgins]

The way the market was going today, it seemed that it was poised to do something with a big magnitude... right now it appears to be going up. Should be interesting to see whether it stops here or if more volatility occurs tomorrow. VIX is tailing off.

 

[Loren Pechtel]

Significant wage growth has caused worries about inflation. The Republicans may have gone too far with their tax breaks. This may overheat the economy and then we’re all just working to break even. Also, there is some concern about having a new Fed Chair. The market needs to get a feel for this guy.

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

Most wage growth is from finding a new job that pays more. (Very shortsighted on the part of employers, as it increases their ramp-up costs.)

 

[TV and credit cards]

Significant wage growth has caused worries about inflation. The Republicans may have gone too far with their tax breaks. This may overheat the economy and then we’re all just working to break even. Also, there is some concern about having a new Fed Chair. The market needs to get a feel for this guy.

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

In the January jobs report. 2.9% annualized. This is the most since 2009. For all the arguing about what the actual unemployment rate is, upward pressure on wages gives legitimacy to the US being at full employment. This along with the market being overdue for a correction worked in tandem to give us what we are seeing in the markets.
Yeah, I got about $7.50 scrubbed off my paycheck too so I guess it’s all those near minimum wage workers that are making out like bandits. Lucky fuckers.

 

[Horatio Parker]

Significant wage growth has caused worries about inflation. The Republicans may have gone too far with their tax breaks. This may overheat the economy and then we’re all just working to break even. Also, there is some concern about having a new Fed Chair. The market needs to get a feel for this guy.

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

In the January jobs report. 2.9% annualized. This is the most since 2009. For all the arguing about what the actual unemployment rate is, upward pressure on wages gives legitimacy to the US being at full employment. This along with the market being overdue for a correction worked in tandem to give us what we are seeing in the markets.
Yeah, I got about $7.50 scrubbed off my paycheck too so I guess it’s all those near minimum wage workers that are making out like bandits. Lucky fuckers.

Some say it's new restaurant minimum wages kicking in.

U6 is still over 9%. The overall labor participation rate is still well below 2007. 62.7% down from 67.3% in 2000.

https://fred.stlouisfed.org/series/CIVPART

 

[Elixir]

Significant wage growth has caused worries about inflation. The Republicans may have gone too far with their tax breaks. This may overheat the economy and then we’re all just working to break even. Also, there is some concern about having a new Fed Chair. The market needs to get a feel for this guy.

Where the fuck is all this wage growth? Cause I'm sure as hell not seeing it.

In the January jobs report. 2.9% annualized. This is the most since 2009. For all the arguing about what the actual unemployment rate is, upward pressure on wages gives legitimacy to the US being at full employment. This along with the market being overdue for a correction worked in tandem to give us what we are seeing in the markets.
Yeah, I got about $7.50 scrubbed off my paycheck too so I guess it’s all those near minimum wage workers that are making out like bandits. Lucky fuckers.

Heh. I'm getting hammered too... damn minimum wagesters!

 

[TV and credit cards]

In the January jobs report. 2.9% annualized. This is the most since 2009. For all the arguing about what the actual unemployment rate is, upward pressure on wages gives legitimacy to the US being at full employment. This along with the market being overdue for a correction worked in tandem to give us what we are seeing in the markets.
Yeah, I got about $7.50 scrubbed off my paycheck too so I guess it’s all those near minimum wage workers that are making out like bandits. Lucky fuckers.

Some say it's new restaurant minimum wages kicking in.

U6 is still over 9%. The overall labor participation rate is still well below 2007. 62.7% down from 67.3% in 2000.

https://fred.stlouisfed.org/series/CIVPART

I would expect the labor participation rate to decline with retiring baby boomers. Though to what extent, I do not know.