The Dow Jones Industrial Average plummeted by more than 669 points today, capping the worst week for stocks in two years. Maybe now President Trump will stop bragging about how his policies have sent the market into orbit. But, probably not.
While I'm happy that our paltry investment accounts have enjoyed a nice increase over the last few months, every time Trump's bragged about the market and growth in the economy, I've wondered if these geniuses have forgotten that nasty word that besieged our nation not too many years ago:
Now, today, the analysts are saying that concerns about inflation, combined with worries about low unemployment rates and growing payrolls will prompt the Fed to raise interest rates, which of course would dampen the economy by making credit and home mortgages more expensive, and most likely would cause the market to fall even further.
In addition to those economic concerns, analysts say investors are skittish about the unsettled nature of the federal government as we careen towards another potential government shutdown, and Trump's release of that Republican memo that's intended to discredit the Mueller investigation didn't help any.
Every day for the past few months, especially in January, when I checked the market and my own results, I felt euphoric. But that feeling was like the frosting on a cake, and beneath that frosting was a feeling of worry that it can't last. Looks like I was right. Hell, last week I sent my financial advisor $5,000 and told him to invest it. Glad it's still sitting there in cash.
What I don't understand is how Trump can brag on and on about the market and about how he will push the nation to 3 percent growth without anybody in the government saying, "Hey, let's not go too fast. We need to be concerned about inflation."
All of this debt that Trump and his Republican supporters are racking up with their tax reform act, while it may cause make taxpayers happy when they get their extra $2,000 a year in benefits (until they expire), can only pose even more serious economic problems for the long-term future.
And on top of that, he wants to spend another $1.5 trillion (with a T) on infrastructure. Actually, only $200 billion would come from the feds, with the states and localities, along with private industry, picking up the rest. So that higher local and state tax INCREASES and more tolls. And I haven't even mentioned the huge increase he is requesting in defense spending.
So, who is going to get stuck with all of this? You and me, our kids and grandkids -- and maybe even their kids.
MAGA? I don't think so.