You’ve all been waiting breathlessly for it and it’s finally here, dammit.
Boom. Donald Trump doesn’t understand why stocks collapsed on news that average hourly earnings are rising at their fastest annual pace since 2009.
That’s what he’s talking about in the tweet (or if he’s not talking about last Friday’s AHE print intentionally, then he certainly is unintentionally, because that number was unquestionably what tipped the first domino).
Of course Trump is laying the groundwork to blame someone for the market crash – the media, the Fed, Janet Yellen for comments she made on her way out the door, the “deep state”, anyone.
But the problem with Trump’s tweet is that just like everything else he says, he’s either lying, being obtuse or else is simply stupid. In most cases, we’d go with the latter in terms of “explaining” a tweet, but in this case it seems like he probably has at least an inkling of what happened to the market.
After all, candidate Donald Trump understood it all too well. Never forget this:
remember this?…. pic.twitter.com/cpzBuNjTHe
— Heisenberg Report (@heisenbergrpt) February 2, 2018
We would simply drop the mic right there, but we want to emphasize (again) that this is all about Trump trying to ensure that the one thing that’s going right for him doesn’t start to go wrong.
He’s under investigation for collusion (which is a nice word for “high treason”) and also for trying to obstruct the investigation into said high treason, so he really — really — needs that “bubble” to hold up, because if it “comes crashing down” well then it’s not entirely clear what he’s going to be able to point to when someone asks him to explain how exactly it is that his presidency isn’t a total fucking train wreck.
That’s why he’s spent so much time tweeting about the stock market over the past nine months and also why he decided to tell Sean Hannity that “in one sense” rising stock prices decrease the national debt (that of course isn’t true in any sense, but you know, “while we’re just makin’ shit up”).
Given all of that, it should come as no surprise that Trump is monitoring the situation on Wall Street pretty closely and is now agitated about the very same dynamic the clip shown above certainly seems to suggest he understands.
So now, as we noted last night, it’s just a matter of time before the Fed starts to take some heat. Powell’s mettle looks like it might be tested immediately. And if the market does force the new Fed Chair to rethink whatever it is he was planning on doing in terms of forward guidance and the rate path, will Trump make things worse by heaping pressure on him via Twitter?
We kind of hope not, but then again, it sure would be funny if the market collapsed another 1,000 points and everyone woke up to a Trump tweet blaming “Jerk-off Jerome” for the implosion of America’s 401ks.