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Topic	Why does it seem like every Republican president precludes economic failure?
Annihilated 02/09/18 7:52:24 PM #29:	Squall28 posted... SK8T3R215 posted... zDonKEY_K0ngz posted... Annihilated posted... TC's name doesn't match post. You'd flunk econ 101 for even thinking that the stock market, let alone just the Dow, represents any economic health. I know this is an obvious troll topic but I'll explain anyway. The huge and steady rise in the stock market since the recession was not a good thing. Normal stock market behavior is volatile, since there are many factors at play and other investments diverting money out of stocks. The only real improvement we've seen in the economy under Obama's term was the unemployment rate, and that's not the same as economic growth, which has not been great. Interest rates were horrifyingly low for for almost a decade, while the Fed engaged in quantitative easing (buying government debt) in order to fight deflation. If you think prices going up is bad, try having your money literally disappear into thin air. Historically, during bull markets when stocks are expensive, the investment strategy would be to rebalance your portfolio to favor bonds since they are usually high yield during that time, and during bear markets you would start buying stocks again at a discount. The past few years have been fairly unprecedented in that bond yields AND stocks were a poor value. But stocks won nonetheless since they were in a bubble and had superior annual returns, plus you can collect dividend payments on them, while bond interest was so low it was beaten out by inflation, which itself already low. The interest rate goes up when the fed raises it to fight inflation. Inflation goes up when wages go up the economy grows at a fair pace, usually around 3%. For Obama's presidency, it has not broken 2%. Wages go up when jobs outnumber workers, and jobs are created when companies have money to do so. Now that the economy is flourishing in every respect imaginable, interest rates are rising again, and investors are responding by turning their equity into cash while it's still high in anticipation for the returning bond market later this year. Investment options are opening up, wages are going up, companies are coming back to the U.S., and we're finally ready to take the training wheels off and end the age of borrowing which would have taken us into a premature recession within 3 years if everything had stayed the same. Now it could be almost 10 years before we have another recession. And it's all due to the tax cuts. You're welcome. this post is so hilariously dumb and inaccurate i'd say it was hard to believe if i wasn't on CE Solid rebuttal. Well we already know that post is a load of crap. The economy is "flourishing" now since we have tax cuts? https://www.marketwatch.com/story/atlanta-fed-estimate-of-gdp-growth-tops-5-doubling-consensus-2018-02-01 https://www.marketwatch.com/story/jobless-claims-drop-9000-to-221000-remain-near-45-year-low-2018-02-08 https://www.usatoday.com/story/money/economy/2018/01/31/wages-rise-2-6-2017-despite-q-4-slowdown/1082102001/ https://www.msn.com/en-us/money/markets/the-good-news-that-wall-street-doesnt-want-to-hear/ar-BBIUbBX?ocid=spartandhp tl;dr: Get fucking rekt. cerealbox760 posted... Funny how quickly Trump supporters changed their stance. Same users here on CE too. Just twos week ago they swore the president had a direct influence on the stock market. Wrong again. Anyone who knows or cares about the stock market at all knows the president has jack to do with it. Same with recessions. They're supposed to happen. The actual responsibility of government is to enact policies to ensure a smooth recovery, which Obama has not done. <cite>Annihilated posted [p:895792119] in Why does i... [t:76299379]...</cite> <quote><cite>Squall28 posted...</cite> <quote><cite>SK8T3R215 posted...</cite> <quote><cite>zDonKEY_K0ngz posted...</cite> <quote><cite>Annihilated posted...</cite> <quote>TC's name doesn't match post. You'd flunk econ 101 for even thinking that the stock market, let alone just the Dow, represents any economic health. I know this is an obvious troll topic but I'll explain anyway. The huge and steady rise in the stock market since the recession was not a good thing. Normal stock market behavior is volatile, since there are many factors at play and other investments diverting money out of stocks. The only real improvement we've seen in the economy under Obama's term was the unemployment rate, and that's not the same as economic growth, which has not been great. Interest rates were horrifyingly low for for almost a decade, while the Fed engaged in quantitative easing (buying government debt) in order to fight deflation. If you think prices going up is bad, try having your money literally disappear into thin air. Historically, during bull markets when stocks are expensive, the investment strategy would be to rebalance your portfolio to favor bonds since they are usually high yield during that time, and during bear markets you would start buying stocks again at a discount. The past few years have been fairly unprecedented in that bond yields AND stocks were a poor value. But stocks won nonetheless since they were in a bubble and had superior annual returns, plus you can collect dividend payments on them, while bond interest was so low it was beaten out by inflation, which itself already low. The interest rate goes up when the fed raises it to fight inflation. Inflation goes up when wages go up the economy grows at a fair pace, usually around 3%. For Obama's presidency, it has not broken 2%. Wages go up when jobs outnumber workers, and jobs are created when companies have money to do so. Now that the economy is flourishing in every respect imaginable, interest rates are rising again, and investors are responding by turning their equity into cash while it's still high in anticipation for the returning bond market later this year. Investment options are opening up, wages are going up, companies are coming back to the U.S., and we're finally ready to take the training wheels off and end the age of borrowing which would have taken us into a premature recession within 3 years if everything had stayed the same. Now it could be almost 10 years before we have another recession. And it's all due to the tax cuts. You're welcome.</quote> this post is so hilariously dumb and inaccurate i'd say it was hard to believe if i wasn't on CE</quote> Solid rebuttal.</quote> Well we already know that post is a load of crap. The economy is "flourishing" now since we have tax cuts?</quote> https://www.marketwatch.com/story/atlanta-fed-estimate-of-gdp-growth-tops-5-doubling-consensus-2018-02-01 https://www.marketwatch.com/story/jobless-claims-drop-9000-to-221000-remain-near-45-year-low-2018-02-08 https://www.usatoday.com/story/money/economy/2018/01/31/wages-rise-2-6-2017-despite-q-4-slowdown/1082102001/ https://www.msn.com/en-us/money/markets/the-good-news-that-wall-street-doesnt-want-to-hear/ar-BBIUbBX?ocid=spartandhp tl;dr: Get fucking rekt. <cite>cerealbox760 posted...</cite> <quote>Funny how quickly Trump supporters changed their stance. Same users here on CE too. Just twos week ago they swore the president had a direct influence on the stock market. </quote> Wrong again. Anyone who knows or cares about the stock market at all knows the president has jack to do with it. Same with recessions. They're supposed to happen. The actual responsibility of government is to enact policies to ensure a smooth recovery, which Obama has not done.</quote> ... Copied to Clipboard!
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