President Donald Trump is reportedly “glued” to the stock market as equities collapse and the Dow Jones wipes out all of its 2018 gains. Remember, he routinely claimed that it was because of him that the stock market posted record gains since coming into office, which ultimately makes him a fall guy when stocks crumble.
Under such tumultuous conditions, the pillars of Wall Street are sounding the alarm of a possible recession.
Citing the yield curve, business surveys, and jobs data, JPMorgan Chase & Co, Goldman Sachs Group Inc., and Bank of America Corp. have all increased their chances of a recession hitting the U.S. next year. Today, the number is pegged at 35 percent, up from 16 percent in March.
While it is difficult to predict movements of the market – before Trump was elected, there was talk of recessions occurring in 2016 – the research notes should still be studied.
That said, the main problem with these financial institutions is that they ignore the primary culprit of the booms and busts: The Federal Reserve.
In recent months, money-supply growth has moderated as interest rates gradually inch higher. Since the current stream of newly printed money does not mirror that of the last decade, current monetary policy is unable to sustain the bull market of the last decade.
Short of another jolt of tax cuts, there really is nothing that can be done to advance share prices.
For this alone, President Trump can only hope that he loses in 2020 and blame a financial crisis on his successor.
Recessions are inevitable because of our fiat (false) currency and the manipulations of interest rates. The only thing the average person can do is be prepared to ride it out by saving for such a time.
But most will not even think of that, they live for the day only, and dont know the truth of the financial system they are slaves to.
I know the FED banksters have caused every recession / depression since way before 1913. I read a report that credit card debt is up 5% over this time last year. I have reduced my credit card debt by $15,000 since March 2018 and will be debt free in Nov 2019. The good news for me, I will have all my credit card debt that charges interest paid off in May 2019. I just love zero interest credit card debt.