Trump’s Economy
CNN says: Dow plunges after Steven Mnuchin fails to calm markets and the BBC notes: Mnuchin calls big US banks after huge stock market falls.
The so-called Secretary of the Treasury is on vacation at a Mexican resort [they should deport him in the middle of the night]. He called the six largest US banks and asked about their liquidity, i.e. did they have enough money on hand to cover margin calls or a bank run. And then tells them there is nothing to worry about, the economy is strong.
If the aircraft commander comes on the intercom and tells everyone to double check their parachute, but “there’s nothing to worry about”, you start to edge toward the emergency exit.
The government is shut down, Trump is making unsettling foreign policy decisions, the Fed has just raised the prime rate again, and China’s economy is slowing. Throw in Brexit and the investigations into the Trump mob, and the market has a right to get nervous. The investors want stability, and Trump provides chaos.
On October 3rd the Dow was at 26,828. It closed today at 21,792. It closed on 01/20/17 at 19,732.
