To be sure, the “headlines” from the Saturday edition of the inherently oxymoronic “Presidential Twitter Files” will center around Trump’s apparent decision to release secret JFK assassination documents and, to a lesser extent, on his ongoing smear campaign targeting “wacky Wilson.” But don’t let this one go completely by the wayside:
At this point, there is no doubt that Trump understands the hypocrisy in bragging about the stock market. That is, he has surely been reminded by his advisors that this is the very same stock market he called “false” just 13 short months ago.
It is no more “real” today than it was then. It’s a product of the Fed and global central bank largesse more generally. But even if you think that’s not true – that is, if you think the stock market in fact reflects improving prospects for U.S. corporates – Trump’s hyperbole is still misplaced. Because you can’t have it both ways: either the stock market is “false” and thus is a manifestation of “fake news” or it’s not, in which case Obama gets to take credit for the “bigly” rally that unfolded during his presidency.
What you’re seeing from Trump on the market is important. It’s become a key pillar of this administration’s propaganda campaign. Lacking identifiable legislative achievements, the stock market is becoming more and more important as a distraction for a base that’s become disillusioned by the President’s failure to actually implement any of his campaign promises. So what he does is, he tries to make that base believe that the stock market is more important for them than it actually is. Because let’s face it, the people who benefit the most from financial asset price inflation are by definition the people in whose hands those assets are concentrated – and those hands are not attached to the arms of people like Gwynne Abrams and John Wilson.
As you’ll also recall, he’s now floated a trial balloon about the national debt and stock prices. To anyone who knows anything at all about how this works, it was comically absurd. Here, listen:
Again, that’s completely laughable to most of us. But not to his base. And apparently not to Fox either.
And on that note, we’ll leave you in the capable hands of Notes From Disgracedland’s Bjarne Knausgaard …
"We picked up $5.2tr just in the stock market. So you can say in one sense, we are really increasing values and may be in a sense, we are reducing debt." This is just too good to be quickly forgotten. It should be in every macroeconomic textbook, become a part of the US history
— Bjarne Knausgard (@BjarneKnausgard) October 21, 2017
"What you need to control the media is ostensible diversity that conceals an actual uniformity" (J. Goebbels) pic.twitter.com/Cu5xRyvMIG
— Bjarne Knausgard (@BjarneKnausgard) October 21, 2017
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it would great if that billboard was directly across the street from the WH, trump’s window view 🙂
You bet he’s really pleased about $6T in new nominal market cap appreciation. I’m guessing he’s already scalped his 50bps on that pick-up via a front running operation. Not that this is wrong, we’ve all been front running the market for years. For example – Draghi’s “…whatever it takes…” message was an open invitation.
Watch the bond markets over the next couple of weeks (not recommending partaking in it). Imagine how many billions will be made by anyone front running the whipsaws he is going to create with his “thinking” out loud.
Your comments strengthen my impression, TRUMP will assign the new head of the FED, whoever it will be solely on his judgement. He will nominate that person, who in his eyes will help to bring the stock market further up to ….25.000 ? 30.000 ? He will not assign a person assuring tightening. Anyway, what he expects to happen by the time of reelection (not 2020 but 2018 !) of Congress may be just the opposite of what may happen. We only can hope, the majority of acting investors being active or passive, will make their own decisions regardless of this person in “charge” in Oval Office.
LOL! reelection? LOL!! funniest thing all day!