Stock Market’s level of (dis)trust in the Fake President

Trump gave us his little fireside chat, last night, on what he is doing to bring safety to the people of the United States of America, to our health infrastructure, to our economy. Here’s how the Stock Market responded, this morning…

The S&P index has a fail-safe mechanism that automagically kicks in when it looks like the bottom is falling out, a crash is imminent. This engages when the value expressed in this index falls 7%.

This took place, today, 7 minutes after the trading day began. Trading was halted…and resumed after the usual 15 minutes rule. Not exactly resounding support for the bullshitter-in-chief.

6 thoughts on “Stock Market’s level of (dis)trust in the Fake President

  1. Tinkerbell effect says:

    “Trump uses coronavirus press conference to threaten Fed head for not halting economic slide”
    Since the disease’s spread has intensified, the U.S. central bank has enacted an emergency interest rate of 50 basis points, opened up a liquidity program to the bank to add up to $1.5 trillion to the financial system and started buying government debt across the yield curve.
    The Fed has little room left to cut rates after the intermeeting reduction nearly two weeks ago. Its policy rate is now in a targeted range between 1%-1.25%. Market pricing points to the Federal Open Market Committee taking the rate to near-zero, where it was during and after the financial crisis.

  2. Judas Goat says:

    Larry Kudlow, director of the White House’s National Economic Council, “America’s worst financial adviser” Bottom line: “Trump’s minions must say anything to goose stocks and aid Trump’s reelection odds.”
    “…Kudlow, 72, is not an economist, even though he served as “chief economist” at investing firm Bear Stearns in the 1980s. Kudlow was a successful Wall Street salesman who capitalized on an upbeat personality to land a job as a commentator and show host at CNBC, starting in 2002, which made him famous. He’s a fervent supply-sider favoring tax cuts and laissez-faire policies as the best path to a strong economy, one reason Trump tapped him to replace Gary Cohn at the White House in 2018.
    …Yahoo Finance reached out to the White House to ask if Kudlow still recommends buying stocks, or has any regrets about his Feb. 25 buy recommendation. We got no response. That sounds about right.”

    “Larry Kudlow’s Many Buts”, March 9, 2020 episode of “Last Week Tonight with John Oliver”

  3. Worser says:

    “U.S. stocks plunged Monday and were briefly halted for trading after the Federal Reserve took emergency action to cushion the economy from the coronavirus pandemic that is shutting down global business and travel.”
    “…At this stage, a global economic recession is virtually certain. Central banks cannot do much to stimulate demand if people are barricading themselves at home. Far more aggressive fiscal policy will be necessary to prevent a downturn from being severe.”
    “The stock market crash of October 1929 left the American public highly nervous and extremely susceptible to rumors of impending financial disaster. Consumer spending and investment began to decrease, which would in turn lead to a decline in production and employment.
    …The Great Depression in the United States began as an ordinary recession in the summer of 1929, but became increasingly worse over the latter part of that year, continuing until 1933. At its lowest point, industrial production in the United States had declined 47 percent, real gross domestic product (GDP) had fallen 30 percent and total unemployment reached as high as 20 percent.”

    • Gweilo says:

      “China’s economy was devastated by the novel coronavirus outbreak in the first two months of the year, according to data published Monday, and analysts say the nightmare is far from over.
      The collapse in activity affected every sector of the world’s second biggest economy, as the epidemic and draconian measures designed to contain it delivered an unprecedented shock that is now being replicated around the world.
      “We are in a very, very unprecedented period of time,” Adrian Zuercher, head of Asia Pacific asset allocation at the chief investment office of UBS, told CNN Business.
      Retail sales plunged 20.5% during January and February over the same period in 2019, industrial output was down 13.5%, and fixed asset investment fell by nearly 25%, according to the National Bureau of Statistics. All three data points were much weaker than analysts were expecting, and the decline in industrial production was the sharpest contraction on record.
      The data for March could be even worse.”

  4. ...uh-oh says:

    “America’s eight biggest biggest banks are slamming the brakes on their aggressive share buyback programs as they promise to preserve capital to get through the coronavirus crisis.
    The financial institutions announced the buyback decision simultaneously Sunday evening just after the Federal Reserve took emergency actions aimed at staving off a deep economic recession.”

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