Quote:
Originally Posted by finnbow
BTW, the GOP tax plan's $1.5 trillion shortfall, coupled with the ongoing budget negotiations adding a further $500 billion to the debt, have resulted in the need for the Treasury to announce its plans to borrow $3 trillion in the next 3 years, thereby spiking interest rates and inflation (and contributing/causing the current stock market craziness).
You really ought to stick to talking about things you have at least a basic understanding of. Economics is obviously not one of them. |
You don't have a basic understanding of much of anything, unless you read it in a Dem talking point. Treasuries have been selling at fire sale prices for years. The Fed has been suggesting rising rates for a couple years now, and Yellen was already raising rates at the end of her tenure.
https://www.bloomberg.com/news/artic...ferent-opinion
With this selloff in particular, the message is tough to parse. Using it to declare that a slowdown is imminent flies in the face of the signals emanating from employment data, consumer confidence and bond yields.
A recession isn’t the issue -- it’s inflation, an overheating economy, stiffening resolve at the Federal Reserve. What’s going on in the stock market may have nothing to do with the rest of the world at all. It was a technical panic engineered by volatility traders, a consequence of nosebleed valuations and too much euphoria, too soon..
You act like volatility in the stock market is something new and attributable to Trump. The tax cut didn't take effect until this month, but stock valuations have been rising steadily for a year or more. The Treasury bond sale this month was known well in advance and marginally increasing the size of the bond sale, at most, had little to do to accelerate what is already happening.
Get a freaking clue.