The Trump Presidency

To the extent that the tools at the Fed's disposal work, they work with the markets acting as a transmission mechanism. As far as I know, the Fed does not have tools at its disposal for affecting the economy that bypass the financial markets. Other central banks are in the same boat. That's reality.
 
I guess what I'm saying is that if the interest rates go to zero or below, there's no room to reduce them anymore without causing massive disruption. Trump just wants to keep the economy on a high calorie diet through 2020 to fuel his re-election bid by throwing more sugar into it, but there will come a time when the economy has to adjust and the fall will be more precipitous than it ordinarily would be if some interventions were available. Trump (and Congress) aren't looking out for the long-term health of the economy. It's the culmination of 40 years of concentration on short-term earnings and the Government's inability to put its fiscal house in order over the past 20 years. Clinton left office with a balanced budget. We were going into a recession, but rather than ride that out with some modest adjustments, W went Keynesianism on steroids with a huge tax cut and massive budget outlays. We haven't recovered from that since.
 
50PoundHead said:
I guess what I'm saying is that if the interest rates go to zero or below, there's no room to reduce them anymore without causing massive disruption. Trump just wants to keep the economy on a high calorie diet through 2020 to fuel his re-election bid by throwing more sugar into it, but there will come a time when the economy has to adjust and the fall will be more precipitous than it ordinarily would be if some interventions were available. Trump (and Congress) aren't looking out for the long-term health of the economy. It's the culmination of 40 years of concentration on short-term earnings and the Government's inability to put its fiscal house in order over the past 20 years. Clinton left office with a balanced budget. We were going into a recession, but rather than ride that out with some modest adjustments, W went Keynesianism on steroids with a huge tax cut and massive budget outlays. We haven't recovered from that since.
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To be fair, there's a pretty decent chance the recession would have been an out-and-out depression without those Keynesian measures, though. Internet bubble pops, then 11 Sept 01, then housing bubble pops. That's a lot of body blows to the economy in a short time.
 
Snowman said:
To be fair, there's a pretty decent chance the recession would have been an out-and-out depression without those Keynesian measures, though. Internet bubble pops, then 11 Sept 01, then housing bubble pops. That's a lot of body blows to the economy in a short time.
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two different events spread out over 7 years...dot come bubble bursting and 9-11 were 2000-2001...housing bubble bursting and ensuing financial crisis were 2007-2008
 
Ryan Knight
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@ProudResister
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Trump: “I went down to ground zero with men who worked for me to try to help.”

Fact Check: Trump did not go down to ground zero on 9/11, but he did call into a local

TV station to brag that he now owned the tallest building in Manhattan.

#economic anxiety
 
Snowman said:
To be fair, there's a pretty decent chance the recession would have been an out-and-out depression without those Keynesian measures, though. Internet bubble pops, then 11 Sept 01, then housing bubble pops. That's a lot of body blows to the economy in a short time.
Click to expand...

We were nowhere near depression territory when Bush took office. We were poised for a slowdown that was exacerbated by 9/11, but the tax cut was too big and the subsequent budgetary commitments were too large and, as nsacpi pointed out, the housing bubble issues didn't surface until 2008. In fact, the mess created by the bad decisions of the early-aughts left Obama with a limited tool box to deal with the crisis. I'm not defending a lot of the Obama decisions. Geithner sold him a bill of goods and there was a lot of crap in the stimulus package, but the ultimate decisions fall on the President.
 
The administration's knee jerk reaction that Iran was behind the attack is irresponsible and very dangerous. They don't know and they should say that.
 
Thank goodness Trump has good, smart people around him to deal with any foreign policy situations that might arise.
 
And the so called party of states rights trying to stop California from doing what they want
 
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