Ponderable
- Thread starter Bruddah IZ
- Start date
Isn't the stock market is up since Trump's election?
Sheriff Joe
DA
I don't know what it means, but Mexico better find HRCs' reset button.
Daniel Miller
SILVER ELITE
I haven't checked, but last I heard the markets are up. Market indices measure different things than dollar rates. In particular, market indices measure confidence in the companies listed in their index, and only those companies. The Dow Jones Industrial Average only tracks 30 companies. The Nasdaq Composite measures mostly tech companies. The S&P lists 500 large-cap companies. When compared against all companies (including those traded OTC and companies which are not publicly traded at all), the indices measure confidence in a very small slice of American business.
The exchange rate is a broader measurement of confidence, taking all factors of an economy into consideration, including trade and monetary policy. And unlike market indices, the dollar exchange rate is directly compare against other countries' currencies. This allow one to measure confidence in countries when set head-to-head.
Sheriff Joe
DA
The market is up over 9% since the election.
Bruddah IZ
DA
Daniel Miller
SILVER ELITE
You are looking at the Obama economy. The American economy improved greatly while he was in office. The markets are slightly down since Trump was actually inaugurated 6 days ago.
Sheriff Joe
DA
Yeah, no. It is called the Trump Bump.
Investors couldn't wait for Obama to leave.
Wez
DA
There is no doubt the markets are up on some Trump Euphoria for getting rid of regulations and helping Corporate America. How quickly Americans forget bad times and are easily led astray by their Corporate masters who want no regulations. Never mind how destructive trade wars will be.
He tries to take credit for the fantastic place we're in now, after BO was handed a shit show eight years ago.
Bruddah IZ
DA
Funny how much credit or criticism people give to POTUS for market performance.
Bruddah IZ
DA
Bruddah IZ
DA
Bruddah IZ
DA
You are looking at an economy that is over inflated by three rounds of quantitative easing.
Daniel Miller
SILVER ELITE
First, you talk about quantitative easing as though it is a bad thing. All it means is that the government buys and sells its own debt - usually with bonds - based on how much capital it wants to circulate through the economy. Every country engages in quantitative easing, and the US has done so since the time of our founders.
Second, I don't agree with you that the economy is "over-inflated." In fact, I believe our low interest rates over the last 8 years are conclusive proofs against your argument. During Obama's presidency, the inflation rate has been the lowest over an 8-year period since 1914.
annual inflation (dec vs. dec) inflation annual inflation (dec vs. dec) inflation
CPI United States 2016 2.07 % CPI United States 2006 2.54 %
CPI United States 2015 0.73 % CPI United States 2005 3.42 %
CPI United States 2014 0.76 % CPI United States 2004 3.26 %
CPI United States 2013 1.50 % CPI United States 2003 1.88 %
CPI United States 2012 1.74 % CPI United States 2002 2.38 %
CPI United States 2011 2.96 % CPI United States 2001 1.55 %
CPI United States 2010 1.50 % CPI United States 2000 3.39 %
CPI United States 2009 2.72 % CPI United States 1999 2.68 %
Sheriff Joe
DA
By necessity.
Bruddah IZ
DA
Aren't you missing something here?
Bruddah IZ
DA
This is a common and flawed argument that most people make. Inflation is an increase in the money supply. Whenever the supply of anything goes up, in this case money, the price of money a.k.a. the interest rate, goes down. Simple econ, home prices up, interest rates down. Home prices down, interest rates up. QE increased the flow of cheap money to the housing industry through the Feds purchase of bad debt a.k.a. mortgaged backed securities during the crisis. The point is, you can't use CPI to trumpet the merits of QE when QE did not, nor was it intended to target the CPI but the housing and finance industries specifically. Therefore, you did not see an increase in the CPI because the supply of most of the goods and services in the CPI were so plentiful that CPI remained low for the most part. Fossil fuels deserve most of the credit for low CPI during the years you posted.
Hüsker Dü
DA
I dunno Scarecrow, what'd ya need?
Bruddah IZ
DA
Hüsker Dü
DA
Were the Ironworkers represented? Trump got a lot of union votes, even though he is anti-union (et another example of voting against ones best interests).