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The Market Weighs in on Trump’s Economic Policies


#1

The Market Weighs in on Trump’s Economic Policies

Robert Freeman

The almost 1,400 point, two day drop in the Dow was the market putting its money where its mouth is on Trump’s economic and trade policies. Like so much else that is of Trump, it’s ugly.

Just as Trump was gifted $400+ million dollars from his father and claimed to be a Self Made Man, so, too, he inherited an economy and stock market from Obama that had been rising for the prior eight years, since March 2009. In true Trumpian fashion, he claimed to have created the greatest economy of all time.


#2

For anyone who has children and grandchildren, voting for any politician that supports the “Fleecing of America” as we have all witnessed for decades, and especially these past two years, you are a part of the problem.


#3

I’ll be weighing actual upcoming events in world markets against the prediction made by the author.

We’re overdue as hell for a recession.


#4

There’s so much Orwellian neoliberal mumbo jumbo in this article, I don’t know where to begin. How about the truth?

MARC STEINER: So where does the money come from, then, to invest in infrastructure, in new businesses, and whatever else has to be invested in?

MICHAEL HUDSON: Well, banks don’t invest. That’s a myth. The pretense is that rescuing the banks rescued the economy. But the banks don’t make loans to the economy. Banks don’t make loans to fund factories. They don’t make loans for infrastructure. They make loans to buy assets already in place. They’re privatizing the structure to take it private, raise the rates the people have to pay for services. Essentially they lend to raiders taking over corporations. They won’t help a corporation put in more equipment and hire more people, but they’ll lend to a raider to break up a corporation, downsize the labor force, smash it up and leave it a bankrupt shell. That’s the financial management plan. That’s what they teach in business schools.

So the financial management philosophy that we have is diametrically opposed to what’s needed for economic growth. That should be what people are talking about, because more and more economists are warning that given the rising debt ratios, there’s going to be another crisis. What we should be talking about when we look back on the anniversary of Lehman’s bankruptcy is how to handle the next crisis in a way that doesn’tbail out banks, that bails out the economy by writing down the debts.

If banks have bad debts, they’ve made bad loans. Banks used to be conservative and prudent. But if they make imprudent loans and they say, we don’t care the borrower can’t pay because we’ve sold the whole loan off to a pension fund or a German Landesbank, and somebody else is going to take the loss, you have to restructure the banking system and the financial management, and take it out of the hands of bankers to manage.

If you leave the Treasury Department and the Justice Department and the bank regulators in the hands of bankers, they’re going to loot the rest of the economy. They’re going to take everything they can. So you want someone who’s not a banker to actually do the regulation.

Prof. Hudson explains why we need to focus on private debt, not public debt.

If the 20th century was an era of social justice, the 21st century is one of economic justice, and that begins by ending the massive failure that is neoliberalism.


#5

This is nonsense. The market is reacting to the Fed interest rate hike, which was an over zealous response to a hot economy. The tax and regulatory cuts have had the effect of turbocharging the economy and the Fed is scared of inflation. The stock market is not the economy. The fundamentals of the economy are strong, and will continue to grow stronger.


#6

Prove this to those who can’t find work or who live on the street, and those numbers are growing. The economy you speak of is the “paper economy” ruled by the “haves”.


#7

Freeman sez: “We’re just now getting a glimpse into the beginning of the end. It will be a long way down.”

Not everybody tumbles the same distance before hitting bottom. Plenty are already there.


#8

In my part of the world there are jobs everywhere. Manufacturing, service, skilled trades, you name it and someone is hiring. There are “Help Wanted” signs everywhere and radio ads every hour with companies looking for workers, with many of them offering free training. And I live in a downtown, urban environment with quite a few street people. Most of them are addicts or are mentally disturbed and should be in some sort of care facility rather than wandering the streets. They’re not looking for jobs and couldn’t hold one if they got it. Anyone with any level of motivation can have a job around here if they want one. Now, maybe it doesn’t pay $35/hr to tighten lug nuts on an SUV. But there are plenty of decent paying jobs.


#12

So true, if only lamestreet media would points all these facts out. Not chance in hell, they would be working against their own best interests and that of their oligarchs friends. So independents and democrats don’t get all the facts and their is no possibility of republicans seeings these facts.

The lamestreet media sycophants are as big of a problem as is Citizen United Dark Money in politics.


#13

When unemployment figures are based on people working two jobs at minimum wage and can’t afford a roof over their heads and does not considered the professional workers who were laid off and replaced by foreigners or jobs located overseas and so they cannot find work here in their “homeland”, that is not great for millions of workers.

The tax cuts were used by the oligarchs to buy back their stock and increase CEO/higher management salaries and pennies to a few workers in comparison.

Deregulating oil, gas, coal and others are killing people and there will be a cost to the economy and to humanity and planet earth.

Keep living in your bubble.


#14

It’s been the formula of the new robber barons (hedge funds) for several decades: Asset stripping.


#15

Michael Hudson is not stupid, but why does he have to overstate so ridiculously? After the Great Recession, yes, a lot of money went “to buy assets already in place,” but banks always have and always will also lend for lots of good business reasons. One can never reach the mainstream when so obviously hyperbolic.


#16

Methinks your analysis is myopic at best. Economics is complex, filled with unpredictable variables. Looking at trends can be more useful than hanging your entire set of assumptions on one small cluster of data.


#17

BeeFuckingLoney


#18

This has been the Republican MO since Reagoon.


#19

Yeah. Right. That’s what the moron brigade said just before the Bush crash.

Another low IQ tRump Dump sharting nonsense out his pie hole.


#20

My guess is that Trump is s o deeply in debt to Saudi Arabia and Russia that he is ham strung into inaction. And the man is a coward. He only goes where the FIX is in. His admirers, and there are more than I want to contemplate, would forgive him if he indeed shot them inn the face. He may not have read the Constitution, but he could have helped Hitler write, (Mein Kampf)