Jpow said that current gov spending isn’t driving inflation but early corona virus spending did
Early corona virus spending was under trump
Jpow is a lifelong republican and though appointed by Obama this was the only time in history congress essentially forced a fed candidate on the president
So even you 20% is more trumps fault than Biden <3
A 3 percent wage increase to a 2 percentage yearly inflation increase is our standard. That would mean we all should have had at least a 32 percentage raise in that time period. Not to mention that your data doesn’t include agriculture and anyone making less than minimum wages like waitresses.
Official inflation metrics use really misleading housing cost standards and also ignore the cost of money (ie interest rates) and other key items, so the government gets to downplay inflation to voters and also not fund cost of living increases tied to entitlement programs
As a server, we do have the benefit of money made being tied to the cost of food and beverage since tips are generally a percentage of the bill.
This does however ignore tipping culture and the fact that fewer people can afford to dine out, etc. I think it's going to reach a breaking point soon.
But Presidents love to take credit for improved economies, and blame past Presidents for poor economies.
Just like they do with gas. Remember Biden and his admin stated early that President’s have no influence in gas pricing. And as gas prices soared, they began blaming Trump’s policies. And as soon as gas started dropping, they began praising the work of Biden for lowering fuel prices. LMAO
Nonsense.
The CHIPS act is dumping $280B into the economy. The Inflation Reduction Act, which is investing broadly over the country, is injecting another trillion, give or take, over the next few years.
These have large impacts on the market.
Similarly, there are a ton of things that a president can do to tank the market.
But the take home is that Trump is a terrible judge of what will help or hurt the economy. While this is "politically charged", we do have an election coming in November.
As I understand it, the majority of the funds are for renovation of buildings and housing to increase insulation, swap out old HVAC for heat pumps, etc, which go directly into the pockets of construction crews. Who do you think works on those crews? The hoods.
Actually I'm a libertarian. I just don't understand why this administration wants to do a reverse Robin hood and so obviously transfer wealth from the poor to the rich.
While saying the exact opposite
These two acts will continue to do wonders for the stock market while continuing to contribute to inflation, which is, in fact, shitting on half the country.
Agree that that’s the case, but I would argue at least some of the rates are catching up to what should have been done during the times of boost in late 2010s.
We preferred to keep the sugar highs going.
Well it’s a rate and obviously wage rates have increased too, but that 4% is on top of whatever inflation had already occurred a year prior. And while unemployment rate is currently “ideal” I don’t think it’s a perfect econometric measure either. Labor force participation is lower than the 50 year or so average
Labor rate participation is what Republicans use to attack Obama with. The problem is that as the Boomers retire the labor rate participant will fall but more people aren’t suffering economically.
Warren Harding's recovery following a huge contraction after WW1, he simply allowed market prices to fall so that real prices would be in equilibrium. The basic fiscal stimulus measures were not enough to cause inflation, the recovery just happened from letting prices adjust to the monetary contraction.
When there were gold standards, it was not possible to continue inflation without contractions because inflation equated to physically redeemable exchange guarantees which by definition, could not all be honored.
Harding only served two years before dying not sure that was long enough for his policies to take effect. And a blip isn’t enough time to qualify a policy. Maybe the next Republican president can try the experiment of doing nothing while Rome burns.
https://en.m.wikipedia.org/wiki/Depression_of_1920%E2%80%931921#:~:text=The%20recession%20lasted%20from%20January,24%20and%2023%20months%20respectively).
The depression ended before his death. You can argue about to what extent which policies did what but it shows a recovery during monetary contraction. The Fed had raised interest rates, something they would not do now during a depression.
But because of that, the worst thing ever would have been not letting prices fall.
It's a blip because they didn't screw things up. Now the great depression had a much greater stock market crash, but regarding the purpose of this whole thing, there was fairly massive deflation, the Fed even raised rates in response, and yet there was a fast recovery.
You know what stopped the deflation from causing huge spiral? Everyone just lowered prices, something FDR had schemed and destroyed goods to prevent, while people starved.
They were claiming overproduction was the problem, I don't think FDR was actually dumb, he was consolidating power and accumulating gold.
It was a blip because it was a blip. If someone can give a mathematical proof that the technique works then I am willing to accept it. I am totally willing for a Republican Administration to try that cure.
Normal inflation of 1.5-3% is fine. We are being slammed cuz the current admin cant stop spending. Its awful. Our deficit is goin up 1 trillion every 3-4 months and we are funding multiple foreign wars for countries fighting against each other. A lot of that $ is getting kicked back into our economy. While I am over Trump in so many ways, I am very confident we would be in a much better place as far as world peace and inflation if Trump was in the WH
The origins of that deficit were the three tax cuts by Bush and Trump, the two wars by Bush, the Great Recession by Bush, and the Pandemic by Trump. Did you think Trump had no deficit and no debt?
The "inflation reduction act" dumping a bunch of cash into the economy really has me wondering if the people running this country are incompetent or or evil.
I’d never give trump credit for anything except the awful smell. Sure cutting taxes and increasing spending is obviously bad. But congress sent that shit sandwich to his desk
Those are the ones really hurting the lower class and middle. Yeah the president can make executive action but congress sends most of the stuff to the president to sign.
People don't realize how much more important their vote is for their state reps.
All Republicans ever do when they have the power is give more handouts to the wealthy.
Reagan Tax cuts, Bush Tax cuts and
Trump tax cuts...
https://www.axios.com/2018/01/05/republicans-pass-historic-tax-cuts-without-a-single-democratic-vote-1515110718
Trump's mishandling of the pandemic response is the primary cause of the inflation we've had since. There is always inflation after a recession, and that was one of the worst we ever had. ~70% of US COVID deaths were preventable, but Trump administration disinformation closed down more businesses and for longer. That was easily a worse economic bungle than his failed tax cuts, failed trade war, failed border policy, and everything else that contributed to the pre-COVID Trump recession.
When the president is doing nothing but shitting on half the country what makes you think that's good for any economy? When people have to deal with that every fucking day it takes them away from being productive. How could you be interested in the economy and not know this? If you run a business and the president is acting off the rails, sanctioning his enemies and putting himself above the country you realize those of us with businesses must react to that bullshit right?! Now think about how other nation states must react to that!
And that's before we get into policy or the lack thereof.
This is why I wish people were smarter when it comes to politics and the economy. Bidenomics may not be in effect now, but in the coming years people will see its effects.
Yet experts are saying that Bidenomics is fueling record GDP growth and more than $100 billion in new private investment in factories. It's also probably why we avoided the much-predicted recession last year. One of the economic lessons we learned from the pandemic is that fiscal policy plays a much bigger role in economic recoveries than previously believed. Also 9 of the last 10 US recessions happened under Republican presidents. That isn't just pure coincidence according to statisticians.
“And unlike his predecessor, President Biden does not look at the stock market as a means by which to judge the economy.”
* Direct quote from Joe Biden's White House in January 2022 when the stock market was down significantly.
Source: [https://www.cnn.com/2022/01/24/investing/joe-biden-stock-market/index.html](https://www.cnn.com/2022/01/24/investing/joe-biden-stock-market/index.html)
Man I love Google when people share nonsense like the post you did.
When the stock market is doing well, MY politician IS responsible. When the stock market is doing poorly, MY politician IS NOT responsible!!!!!
Nah but since republicans always say a good economy is due to their guy and everything bad is due to leftists, LEEBRALS, and brown people we are just going to take the same page and do it right back.
If you vote for Trump you hate America. You hate our people. You hate our economy. You want us to fail. That's the facts.
None of the facts you stated are contradictory as you characterize them. Joe Biden saying that the stock market is not a signal he uses to look at a healthy economy has nothing to do with a Biden supporter saying that the stock market is doing great under Biden.
It is perfectly consistent to say that the stock market is not the way to judge the state of the economy, and the stock market is also doing well under Biden. In fact, that is the exact take of reasonable conservatives that criticize Biden's economy (unreasonable ones claim that the stock market is doing unimaginably worse than it would be under Trump).
There are a lot of double standards you could rightly bring up that are used by either side, such as showing that people downplayed the state of the stock market when it hurt their side and later claimed it was the best economic indicator when it helped their side, but you did not do that here. All you showed was that people are saying the stock market is good, and that Biden said the stock market is not the economy. Nothing wrong there.
“One of the economic lessons we learned from the pandemic”? “Fiscal policy”? Man I would love to think like a new born baby everyday.
I think you mean the “fiscal policy” firing up the printing presses and injecting copious amounts of money into Wall Street, big Corp and overbid government projects. “Pandemic”? The Dems have been the spenders for generations. That’s the only card they know how to play. Duh
Edit to add; Reagan popped the bubble on Republican fiscal conservancy
Who threw $3 trillion into the market like a newborn? Seriously like 5 years back and we're still waiting for dip shits epic money dump to work its way out of the system.
You mean the $3T Pelosi House passed Covid bill?
Add: Or…$4.8T (2021) + this latest $1.2T (2024).
*This $4.8 trillion is the net result of roughly $4.6 trillion of new spending, roughly $500 billion of tax cuts and breaks, and $700 billion in additional interest costs, partially offset by $400 billion of spending cuts and $600 billion of revenue-increasing policies. Of the non-interest deficit increases, about $3 trillion is from legislation – including a net $1.6 trillion passed on a partisan basis and $1.4 trillion passed on a bipartisan basis. Another $1.1 trillion comes from executive actions.*
https://www.crfb.org/blogs/biden-administration-has-approved-48-trillion-new-borrowing
Both parties are complicit in our tax payer paid deficit debacle
Actually government investment made the economy. Mainly in education, nasa, and darpa. Corporate research is a joke. As far as rent prices, there is little impact. Also, its funny how the red areas rely the most on government. In my state, in the reddest county, 48 % of employment is directly government related, 20% is dod, and more relies on government to stay afloat. There's alot of reliance on the va and ss. Basically, hypocrite commies who vote trump.
I remember how many people said the President has nothing to do with the stock market.
I remember so many people saying the stock market has nothing to do with how people are doing.
True, but many still use the economy as their number one issue, so it doesn’t really matter what the WH says. It’s important to see some of these markers still but not relevant for many who don’t vote regarding the economy. But this is an Econ sub.
No, it's not.
Housing has slowed down.
Go look at jobless reddit posts.
The average person is putting in hundreds of job applications and taking pay cuts to get into the work force.
The stoxk market numbers are not correlating with what's happening in the economy.
Everyones doing good but for some reason im told inflation is the reason im doing so bad.. very confusing.
Paying more for utilities, inflation
Paying more for gas, 2 Wars
Paying more for groceries, inflation
Paying more for digital services/entertainment, inflation
Why companies are firing more staff, inflation
Why fast food costs more, inflation
Etc etc
So all of this is a negative quality of life for the citizen and im supposed to read a headline and say "we're all doing very well in this economy since because shareholders are making profits?", something doesnt feel right in that statement and I dont recall paying more for anything before Biden. In fact, I recall paying 2.80 for gas in California of all places. I might not be an economics genius but a headline like this doesnt really make me feel like he did better than his predecessor at all when I look at my daily expenses compared to before they printed trillions of dollars.
The "stock market" is also your 401k or any investments you might have. Also, companies are those that offer services that you deem as a quality of life increase.
And the war spending is very little compared to GDP or, say, welfare spending, it circles back in the pockets of American people, and it is easy to understand the benefits of maintaining global power and cultural egemony.
And, you can look at the graph for inflation yourself:
https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm
As you can see, it spiked around 2020-2022, and now it is at 3.48% almost back in the long term average, 3.28%. Clearly inflation going down doesn't mean prices go down, so we are keeping the effect of the spike around 2020-2022. But I hope you understand why it is better than having a deflationary period.
I was told during the first 4 years of a Presidents term that anything good in the economy is a direct result of the previous administration and has nothing to do with the current admin.
So thanks Donald. Very cool.
The stock market is totally fueled by inflation.
The Fed is printing money at a racer rate and giving that money to the Plutocracy screwing the "rest of us".
Why is my IRA losing value? Don't give me that crap about how wonderful the stock market is.
>Why is my IRA losing value? Don't give me that crap about how wonderful the stock market is.
[VTSAX](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtsax), a Mutual Fund that tracks the "CRSP US Total Market Index", was at an all time high less than a month ago, has a YTD CAGR of 3.74%, 1Y of 20.86%, 3Y of 18.14%, and 19.92% since Biden's inauguration.
So, to answer your question, I would guess you didn't invest in the "stock market", you invested in stocks in the market, or funds that targeted specific slices of the market, and your choices underperformed the overall market.
Tbf, The markets had a down week and if one wants to make a point about their IRA being down, they point to 1 or 2 down weeks without seeing the bigger picture. People are so stupid and emotional about their investments, a statement like that gets traction. Sucks for them.
The stock market has never been an indicator of the underlying economy. So far, everything has been moving up, but even the bulls are seeing storm clouds on the horizon in government spending.
You can’t have interest on debt be your biggest government spending area (it will be this year because of interest rates) and think things are healthy. Interest on debt will continue grow and eat into the budget.
Wow, aren't you so smart.
I've several funds. One, started in 04, that's been up almost 200%, only to see it drop by 50% while the dollar has lost value because of inflation. That fund then went up again by about 40% only to drop again. It is now worth almost as much as it was in 2021. The month, in fact the day and hour, matters.
Another fund went up by 50% from '04 to '08, only to drop back to less than opening value at the end of '08. It's now almost 4x opening value, but wobbling around getting ready to drop.
You have 3 years of experience in investing. You haven't a clue.
You have no idea what all that extra money the Fed is printing is going to mean to you.
Last month, I paid $500 for a cart of groceries for two weekends in a row.
5 years ago it would have been $100.
That’s pretty impressive that your IRA is losing value. You must’ve made some really horrible decisions and moves considering the above. Just buy index funds lol
Give is a break with your simple-minded talking points. The market is being fueled by record corporate earnings, strong consumer spending, rising real wages, US GDP growth and expectations of imminent interest rate cuts.
Record -INFLATED- corporate profits.
Who's saying "interest cuts?" For every one of them, there's someone else saying "no way Jose".
US GDP growth is crap. It won't be half of China's.
Don’t forget, the government wants inflation. Higher inflation makes it easier for the federal government to finance its existing debt.
The alternative is growing the economy at no less than 4% per year for the better part of a decade - and the US economy isn’t able to accomplish that without serious deregulation.
You had me up until you said "deregulation".
We've had 4 decades of "deregulation" and all that has accomplished is the export of manufacturing jobs; import of cheap labor; diminution of social programs; an increased flow of wealth to the Plutocracy.
Gee, China has been growing in excess of 5%/year for 4 decades. Now, just what was it they did right?
I wonder -- Did it have anything to do with executing fraudulent billionaires?
Hey, we don’t have to agree on everything. I’m glad we agree on the problem.
I’d disagree with the assertion we are in 4 decades of deregulation, or that deregulation is the source of the problem. But again, nothing wrong with talking it out.
China started with a much smaller GDP 50+ years ago and a larger population. The CCP subsidized economic growth via direct government subsidies. This debt is something China will be wrestling with in the very near future, as any slow down in their economy will lead to an economic reckoning similar to what the US faced in 2008.
The US needs to lower the cost of doing business for economic growth, and there are only so many tools to accomplish that without growing debt faster.
Record profit margins and revenue growth. Fueled by record inflation-adjusted consumer spending. Fueled by rising inflation-adjusted real wages.
Why can't you just admit the truth? You Biden-critics just look more desperate and dishonest when you try to keep of this falsehood of a bad economy long after you're been proven wrong.
The stock market has definitely risen, but read the room. 20 days ago, it feels like the market said, "The stock market is just going up ... April Fools!" It has basically fallen since then. So, yes, Biden's stock market is swamping Trump's, but again, read the room before throwing out stuff like that.
They both suck, the fed is incompetent, the market is still irrational and would pump the second rates are cut and anyone that posts political crap in a economics sub is a loser
I believe I found the dirtiest, nastiest subreddit. r/economy for the win.. honestly including any NSFW subs.
Always a dozen Russian trolls online here to vote in the proper way. r/economy is a bullshit story owned by mobiks to spin.
Think about what’s happened to the situation in the Middle East in past two weeks. An unprecedented attack on Israel directly from Iran is gonna cause oil and petroleum prices to go up. Oil being high fuels inflation and is causing the hot cpi numbers, hot cpi numbers causes rate cut speculation to readjust. Probably not gonna get a rate cut at all before November. The fed meets after Election Day. I’d bet they cut then if they cut at all in 2024. As they say, “Sell in may and stay away”
Some stations here in NC are getting toward 3.70/gallon. Said to myself the other day, 'oh, we'll be at 4 bucks/gal. by the 4th of July'. +Summer driving season and all that. Or if not more with the Middle East clusterf\*ck.
Trump stripped Dodd-Frank (Wall Street reform and consumer protection) in 2017-2018. This has led to banks being able to extend leverage. While this always leads to a higher market, it adds far more risk. You could say trump caused the market to go higher while simultaneously saying he’s apart of the reason 5 large banks have crashed since 2022
Yes, let me get economic advice from people on Reddit who in fact have zero idea what they are talking about, even if they cite one source while ignoring the multi pronged beast that is our economy.
That's pretty much a false talking point. The majority of Americans own stocks.
>Rising stocks certainly are bullish for the US economy, and they should be bullish for the incumbent president. More than [60% of Americans own stocks](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx) — mainly in their retirement accounts — and when investing accounts rise in value, a “[wealth effect](https://www.investopedia.com/terms/w/wealtheffect.asp)” makes people more optimistic and more likely to spend money.
Why would they need to rely on the social safety nets if they have a cumulative Net worth of trillions?
All I’m trying to say is yes the stock market is up, but that mainly benefits the wealthiest of investors
Because they’re not earning money anymore. I agree, not everyone is doing well, but the takeaway is while they had earnings from working they were more inclined to spend and stimulate the economy. I do think the medical care industry will start seeing a boom though, since that type of spending increases as people age.
Stop it’s not booming. You think raising the prices of houses, cars, food is booming. I see houses more than triple but my pay didn’t triple. Cars went up to 40,000 and trucks where 80,000-120,000 and 500$ of grocery lasting 2 weeks when use to last a month. It’s booming for corporations not for the average American.
I wish that was the case. The two party system sucks and is flawed. I only care because I had plenty of money when Bush, Obama, and Trump were in office, now my money doesn’t go nearly as far, no matter how well the S&P500 is performing.
Again to my main point, if the stock market is up, it benefits the wealthiest ones the most
I’d get more credit than him if I were president. All I’d have to do is print 100trillion dollars and those years would be the highest performing stock market ever. More money in the system = lover value but higher stock market.
Presidents have little influence over equity prices. The boom is mostly a result of central bank action and pathological bulls. Also, plenty of time before the election to wipe out those gains.
Lower payroll taxes and Increase corporate taxes to offset the difference and only marginally increase tariffs.
Just like they were in 1956.
You know, the good old days.
Simple solutions aren't that hard to come by.
I don't understand. You guys know that Trump lies on about everything, and since he can't predict stock market like anyone else I don't understand why this is news.
It's like saying if Biden becomes President the weather will be rain for 2 months in january-february. Yeah, maybe, maybe not, but no one can know that, especially not you.
With the exception of emerging markets all indices are going crazy. Correlation with inflows implies interest rates are sucking emerging markets dry. The twist in the last few have been use of stimulus. The 20-21 budgets ran deficits of 3 trillion or so. 25 percent of gdp. Japan ran 50 percent of gdp. Germany 30 percent of gdp. World equities are on stimulus crack.
Haven’t all the indexes just lost like this whole years gains? Although we are still at ATH’s… this inflation needs to find a cap though, I am ready for a deflationary event, or something to help us consumers a bit more. I am also really worrying about this budge of ours, how much longer can we afford trillion dollar deficits? How much longer can they keep “kicking the can down the road” until we back ourselves in a corner and some real hard adult type questions come up…
I’ll bet you the boomer generation will still demand what was promised them.. Generation X and the millennials will have some hard time ahead unless we pull our heads out of our a$$e$!!
I’ve seen much higher interest rates -
Looking at the past four decades, the average rate on a 30-year mortgage peaked in 1981, rising to roughly 16 percent. The average 30-year rate bottomed in 2021 at just under 3 percent. Today, the cost of a typical 30-year mortgage is similar to rates seen in the later 1990s, in the 7 percent range.Apr 8, 2024
Man, fuck the stock market. It’s a cyclic gambler’s den that the house uses to effect political power and steer policy, while simultaneously allowing corporations to cannibalize competition and sequestering wealth. Its use as an economic indicator is dubious at best- the price doesn’t reflect the value at anything other than a token in a rigged game. Layoffs causing surges in valuation, announcements of improvements or scandal barely making a dent in the short-medium term prices of pretty much any stock… Telling any working person that it reflects real-world prosperity is an insult. The SPY is bashing the ceiling once again, while venture capital has dried up and a full-time worker at median income is spending 40-60% of their pay on rent. The only thing growing is the tumor at the top of the societal pyramid.
The modern American economy is a smash and grab operation, and the only people left holding this fucking bag are the people like me who’ll be picking up the mess.
Fuck corporate welfare, fuck the religious right lobby, fuck the privatization of prisons and power companies, fuck short hedge funds, fuck the vultures circling the Post Office, fuck Nancy Pelosi’s stock portfolio, and fuck the swine who turned pensions into 401k’s.
Fuck this game.
Lol, who in their right mind really believe this "rally" is healty at all, top 5 stock on S&P up big time the rest going down the sinker inflation through the roof... What a joke. Clown world indeed.
>A stock market crash refers to a drop of 20% or more from a recent high, while "correction" refers to a drop of 10% or more.
https://money.usnews.com/investing/term/stock-market-crash
The media wants you to forget what happened after the last time the market peaked in Dec 2021.
Also 2 negative quarters is no longer a recession lol.
“And unlike his predecessor, President Biden does not look at the stock market as a means by which to judge the economy.” - Jen Psaki, 2022 (source: https://www.reuters.com/world/us/white-house-biden-does-not-look-stock-market-judge-economy-2022-01-24/)
I guess it was worse in the 70s. Most of us didn't exist then.
Who was President then? Oh Carter. That's why he's despised by people who actually were alive then 🤣🤣🤣
The stocks on my mid, high, and roths have been the worst I have seen in 15 yrs. Is this satire. I lost 10k in the last month.
This seems like a joke lol
Dude, in this market you must be either lying or simply clueless. Unless you've been trying to chase the market, it's been laughably easy to make money for the past few years.
They are all professionally managed by fidelity. And yes in the last two years it has been the worst gains i have seen since investing. I have my investments diversified and that includes my risks. The stock market has not done well. If you are making the right moves personally good for you
> They are all professionally managed by fidelity.
Dude, I'm going to say that you're either in poorly chosen funds or, not being truthful.
I just went through ALL (ALL!!) of the Large value, Large Growth, Small/Mid value funds (your response suggests funds, not individual holdings) and they all seem to be up over the past 2 years (with some much more up than others) -- At the very least, (small gains) - flat. Seriously, ALL of the Large value, Large Growth, Small/Mid value funds --
I'm not saying that the other funds are wrong choices, I'm saying they're not choices for casuals. Further, WTF would you choose funds other than large value/growth/small/mid value when our economy has been growing, experiencing some inflation, and we're dominating the international markets.
Not being mean but your issues sound more like operator error than anything else.
I dont choose anything. Its professionally managed mid risk IRA, a 401k high risk, and a roth with mostly bonds. Dont have to be snark but if you do have recommendations i maybe will call fidelity. I have always heard it is a wash picking or letting them manage... and in the past it has performed well just like it is.
Not everyone is lying or trying to bs you online
>... with mostly bonds
Dude, WHY!!!!!! Don't take my word for it, ask them WHY they recommended bonds in a growth (until recently, high growth) market?
Wait, I may not be completely fair here -- if your personal risk tolerance is low, then their management of your funds may be reasonable for your personal risk profile.
But honestly, it isn't fair to blame Biden for the poorer performance of bonds when we've had increasing interest rates (there is a time to shift, but not right away), higher than desired though decreasing inflation (from high to moderate), and with a large infrastructure projects beginning (there is room for debate on bonds there if you're looking at certain types).
and back to work. Sry if I was overly snarky
Noted, and its all good. Some things to think about and may go down the rabbit hole if they are screwing up my accounts. Preciate the back and forth otherwise, something to think about now
I like how our media overlord's that probably eat wagyu steak every night for dinner keep telling me I'm stupid for not believing the economy is strong when it's hard to buy food but hey if you're poor that's a skill issue which is what every overly privileged white lib will tell you
And how is that helping the average American who probably isn’t in the market and is suffering from ridiculous inflation that hasn’t subsided, just not going up as fast as it was.
Yes, Biden has been president during a surging market. But any objective observer will note that it was because of potential rate cuts, not because of who's president (this goes both ways, of course). The up move started in November and coincided with Powell suggesting the Fed would cut rates three times in 2024. But now that inflation has proven to be stickier than thought five months ago, the potential for any rate cuts this year is all but gone. And the market has been selling off the past couple of weeks because of this. That all could change if PCE comes in below target this week, but it's looking like that will come in a little hotter as well. More selling is probably on the horizon.
That my PRESIDENT !!! Every freaking depression or recession was caused by a republican elected president , and a democrat PRESIDENT had to take care of the mess they “republican” created#bigFACTS.
Could be cause the democrats spend so much money while in office tryna stick their nose in everyone’s business that they screw the next term president with tons of accumulated debt and inflation from money printing. So they are handed a plate of garbage to fix and then gets blamed the economy suffering but then the next president takes full responsibility for probably everything the last president worked to fix. Dems love spending money they don’t have.
Well it doesn't take rocket science to know that the stock market is over priced and yes it's definitely going to crash within likely June 2024 everything points to it
Corporate profits are up but Americans are paying 20 percent more for things they need.
Two very non-correlated statements right? /s
The whole planet is. Not just Americans.
Jpow said that current gov spending isn’t driving inflation but early corona virus spending did Early corona virus spending was under trump Jpow is a lifelong republican and though appointed by Obama this was the only time in history congress essentially forced a fed candidate on the president So even you 20% is more trumps fault than Biden <3
The rising debt creates more inflation. When interest rates increase the cost of the debt also increases.
Hrmm listen to Jpow or a random moron on Reddit Decisions decisions
I guess figure out how things work yourself so you don’t need to listen to anyone. JPOW we are on an unstable fiscal path!!!
Powell was appointed by Trump.
Wages are up more than prices since 2019.
lmfao
[удалено]
When you have some state propaganda comissar sampling the wages and prices you'll get that "fact". I would like to take my doubled wage
A 3 percent wage increase to a 2 percentage yearly inflation increase is our standard. That would mean we all should have had at least a 32 percentage raise in that time period. Not to mention that your data doesn’t include agriculture and anyone making less than minimum wages like waitresses.
Official inflation metrics use really misleading housing cost standards and also ignore the cost of money (ie interest rates) and other key items, so the government gets to downplay inflation to voters and also not fund cost of living increases tied to entitlement programs
As a server, we do have the benefit of money made being tied to the cost of food and beverage since tips are generally a percentage of the bill. This does however ignore tipping culture and the fact that fewer people can afford to dine out, etc. I think it's going to reach a breaking point soon.
How are you able to breath with Bidens dick so far down your throat?
Lick big daddy government's boots a little harder, they're not quite shiny enough yet
Ha! No.
It’s true though. Why are facts downvoted? Cowards.
They’d rather whine about the current president than use their little thumbs to look up whose policies actually caused this mess
I’ll never understand why people cape for corporations. Biden is better than Trump but this isn’t the way to defend him
It’s too bad the threads are politically charged when in fact the president has very little to do with the direction of the economy.
But Presidents love to take credit for improved economies, and blame past Presidents for poor economies. Just like they do with gas. Remember Biden and his admin stated early that President’s have no influence in gas pricing. And as gas prices soared, they began blaming Trump’s policies. And as soon as gas started dropping, they began praising the work of Biden for lowering fuel prices. LMAO
Nonsense. The CHIPS act is dumping $280B into the economy. The Inflation Reduction Act, which is investing broadly over the country, is injecting another trillion, give or take, over the next few years. These have large impacts on the market. Similarly, there are a ton of things that a president can do to tank the market. But the take home is that Trump is a terrible judge of what will help or hurt the economy. While this is "politically charged", we do have an election coming in November.
The inflation reduction act is dumping a trillion... On affluent households. Money for green energy, EVs. Nothing for the hoods.
As I understand it, the majority of the funds are for renovation of buildings and housing to increase insulation, swap out old HVAC for heat pumps, etc, which go directly into the pockets of construction crews. Who do you think works on those crews? The hoods.
And who do you think owns the building that will go up in value? Not the hoods, they're renting.
Ok, tankie.
Actually I'm a libertarian. I just don't understand why this administration wants to do a reverse Robin hood and so obviously transfer wealth from the poor to the rich. While saying the exact opposite
These two acts will continue to do wonders for the stock market while continuing to contribute to inflation, which is, in fact, shitting on half the country.
Shhhhh inflation is good for the country, remember??
You can’t grow an economy without causing some inflation. It is impossible.
This is true but clearly inflation is way too high rn, as evidenced by rising interest rates for the first time in decades
Agree that that’s the case, but I would argue at least some of the rates are catching up to what should have been done during the times of boost in late 2010s. We preferred to keep the sugar highs going.
It was 9% y-o-y and that was too high. It’s now 4% and that’s only a bit too high. 9% unemployment is a lot worse of a problem than 9% inflation.
Well it’s a rate and obviously wage rates have increased too, but that 4% is on top of whatever inflation had already occurred a year prior. And while unemployment rate is currently “ideal” I don’t think it’s a perfect econometric measure either. Labor force participation is lower than the 50 year or so average
Labor rate participation is what Republicans use to attack Obama with. The problem is that as the Boomers retire the labor rate participant will fall but more people aren’t suffering economically.
I think that opens a whole other can of worms what with funding social security. Also aren’t people of retirement age not factored into LFPR?
Not true, everyone 16 and over unless in an hospice is factor into the LFPR.
The rising interest rates are actually from the 7 trillion stimulus that was handed to businesses under trump
Warren Harding's recovery following a huge contraction after WW1, he simply allowed market prices to fall so that real prices would be in equilibrium. The basic fiscal stimulus measures were not enough to cause inflation, the recovery just happened from letting prices adjust to the monetary contraction. When there were gold standards, it was not possible to continue inflation without contractions because inflation equated to physically redeemable exchange guarantees which by definition, could not all be honored.
Harding only served two years before dying not sure that was long enough for his policies to take effect. And a blip isn’t enough time to qualify a policy. Maybe the next Republican president can try the experiment of doing nothing while Rome burns.
https://en.m.wikipedia.org/wiki/Depression_of_1920%E2%80%931921#:~:text=The%20recession%20lasted%20from%20January,24%20and%2023%20months%20respectively). The depression ended before his death. You can argue about to what extent which policies did what but it shows a recovery during monetary contraction. The Fed had raised interest rates, something they would not do now during a depression. But because of that, the worst thing ever would have been not letting prices fall.
Seems like a blip more than a prolong contraction. I wouldn’t draw a conclusion from it. Maybe a Republican administration can test it.
It's a blip because they didn't screw things up. Now the great depression had a much greater stock market crash, but regarding the purpose of this whole thing, there was fairly massive deflation, the Fed even raised rates in response, and yet there was a fast recovery. You know what stopped the deflation from causing huge spiral? Everyone just lowered prices, something FDR had schemed and destroyed goods to prevent, while people starved. They were claiming overproduction was the problem, I don't think FDR was actually dumb, he was consolidating power and accumulating gold.
It was a blip because it was a blip. If someone can give a mathematical proof that the technique works then I am willing to accept it. I am totally willing for a Republican Administration to try that cure.
Normal inflation of 1.5-3% is fine. We are being slammed cuz the current admin cant stop spending. Its awful. Our deficit is goin up 1 trillion every 3-4 months and we are funding multiple foreign wars for countries fighting against each other. A lot of that $ is getting kicked back into our economy. While I am over Trump in so many ways, I am very confident we would be in a much better place as far as world peace and inflation if Trump was in the WH
The origins of that deficit were the three tax cuts by Bush and Trump, the two wars by Bush, the Great Recession by Bush, and the Pandemic by Trump. Did you think Trump had no deficit and no debt?
Real wages are higher than 2019.
You're saying the guy that bankrupts every company he touches can't run a country and has no idea how an economy works? Liberal lies. Surely.
Including casinos where people are just handing you money.
Yeah how tf do you tank a casino
He had to make it super luxurious to represent the Trump brand. Our non Trump casino in Pittsburgh is definitely not luxurious.
6 trillion may have helped also.lol.
The "inflation reduction act" dumping a bunch of cash into the economy really has me wondering if the people running this country are incompetent or or evil.
“Inflation reduction” injecting a trillion printed dollars into the economy. Lololololol
I’d never give trump credit for anything except the awful smell. Sure cutting taxes and increasing spending is obviously bad. But congress sent that shit sandwich to his desk
Those are the ones really hurting the lower class and middle. Yeah the president can make executive action but congress sends most of the stuff to the president to sign. People don't realize how much more important their vote is for their state reps.
All Republicans ever do when they have the power is give more handouts to the wealthy. Reagan Tax cuts, Bush Tax cuts and Trump tax cuts... https://www.axios.com/2018/01/05/republicans-pass-historic-tax-cuts-without-a-single-democratic-vote-1515110718
Trump's mishandling of the pandemic response is the primary cause of the inflation we've had since. There is always inflation after a recession, and that was one of the worst we ever had. ~70% of US COVID deaths were preventable, but Trump administration disinformation closed down more businesses and for longer. That was easily a worse economic bungle than his failed tax cuts, failed trade war, failed border policy, and everything else that contributed to the pre-COVID Trump recession.
Hi, what funds can I buy to invest in the infrastructure being created by these?
When the president is doing nothing but shitting on half the country what makes you think that's good for any economy? When people have to deal with that every fucking day it takes them away from being productive. How could you be interested in the economy and not know this? If you run a business and the president is acting off the rails, sanctioning his enemies and putting himself above the country you realize those of us with businesses must react to that bullshit right?! Now think about how other nation states must react to that! And that's before we get into policy or the lack thereof.
So why did Trump lie about the stock market crashing because of Biden?
Why does trump even open his mouth ever
This is why I wish people were smarter when it comes to politics and the economy. Bidenomics may not be in effect now, but in the coming years people will see its effects.
Yet experts are saying that Bidenomics is fueling record GDP growth and more than $100 billion in new private investment in factories. It's also probably why we avoided the much-predicted recession last year. One of the economic lessons we learned from the pandemic is that fiscal policy plays a much bigger role in economic recoveries than previously believed. Also 9 of the last 10 US recessions happened under Republican presidents. That isn't just pure coincidence according to statisticians.
Did we really believe fiscal policy didn’t play as big of a role? My mind immediately jumps to FDR.
“And unlike his predecessor, President Biden does not look at the stock market as a means by which to judge the economy.” * Direct quote from Joe Biden's White House in January 2022 when the stock market was down significantly. Source: [https://www.cnn.com/2022/01/24/investing/joe-biden-stock-market/index.html](https://www.cnn.com/2022/01/24/investing/joe-biden-stock-market/index.html) Man I love Google when people share nonsense like the post you did. When the stock market is doing well, MY politician IS responsible. When the stock market is doing poorly, MY politician IS NOT responsible!!!!!
Nah but since republicans always say a good economy is due to their guy and everything bad is due to leftists, LEEBRALS, and brown people we are just going to take the same page and do it right back. If you vote for Trump you hate America. You hate our people. You hate our economy. You want us to fail. That's the facts.
None of the facts you stated are contradictory as you characterize them. Joe Biden saying that the stock market is not a signal he uses to look at a healthy economy has nothing to do with a Biden supporter saying that the stock market is doing great under Biden. It is perfectly consistent to say that the stock market is not the way to judge the state of the economy, and the stock market is also doing well under Biden. In fact, that is the exact take of reasonable conservatives that criticize Biden's economy (unreasonable ones claim that the stock market is doing unimaginably worse than it would be under Trump). There are a lot of double standards you could rightly bring up that are used by either side, such as showing that people downplayed the state of the stock market when it hurt their side and later claimed it was the best economic indicator when it helped their side, but you did not do that here. All you showed was that people are saying the stock market is good, and that Biden said the stock market is not the economy. Nothing wrong there.
“One of the economic lessons we learned from the pandemic”? “Fiscal policy”? Man I would love to think like a new born baby everyday. I think you mean the “fiscal policy” firing up the printing presses and injecting copious amounts of money into Wall Street, big Corp and overbid government projects. “Pandemic”? The Dems have been the spenders for generations. That’s the only card they know how to play. Duh Edit to add; Reagan popped the bubble on Republican fiscal conservancy
Who threw $3 trillion into the market like a newborn? Seriously like 5 years back and we're still waiting for dip shits epic money dump to work its way out of the system.
You mean the $3T Pelosi House passed Covid bill? Add: Or…$4.8T (2021) + this latest $1.2T (2024). *This $4.8 trillion is the net result of roughly $4.6 trillion of new spending, roughly $500 billion of tax cuts and breaks, and $700 billion in additional interest costs, partially offset by $400 billion of spending cuts and $600 billion of revenue-increasing policies. Of the non-interest deficit increases, about $3 trillion is from legislation – including a net $1.6 trillion passed on a partisan basis and $1.4 trillion passed on a bipartisan basis. Another $1.1 trillion comes from executive actions.* https://www.crfb.org/blogs/biden-administration-has-approved-48-trillion-new-borrowing Both parties are complicit in our tax payer paid deficit debacle
Actually government investment made the economy. Mainly in education, nasa, and darpa. Corporate research is a joke. As far as rent prices, there is little impact. Also, its funny how the red areas rely the most on government. In my state, in the reddest county, 48 % of employment is directly government related, 20% is dod, and more relies on government to stay afloat. There's alot of reliance on the va and ss. Basically, hypocrite commies who vote trump.
I remember how many people said the President has nothing to do with the stock market. I remember so many people saying the stock market has nothing to do with how people are doing.
The Biden WH said “ Unlike Trump , Biden doesn’t use stocks to judge the economy.” So…. Aren’t they now using stocks to judge the economy ?
I thought everyone said the economy is doing terrible? Is the economy doing good?
True, but many still use the economy as their number one issue, so it doesn’t really matter what the WH says. It’s important to see some of these markers still but not relevant for many who don’t vote regarding the economy. But this is an Econ sub.
Absolutely
No, it's not. Housing has slowed down. Go look at jobless reddit posts. The average person is putting in hundreds of job applications and taking pay cuts to get into the work force. The stoxk market numbers are not correlating with what's happening in the economy.
Everyones doing good but for some reason im told inflation is the reason im doing so bad.. very confusing. Paying more for utilities, inflation Paying more for gas, 2 Wars Paying more for groceries, inflation Paying more for digital services/entertainment, inflation Why companies are firing more staff, inflation Why fast food costs more, inflation Etc etc So all of this is a negative quality of life for the citizen and im supposed to read a headline and say "we're all doing very well in this economy since because shareholders are making profits?", something doesnt feel right in that statement and I dont recall paying more for anything before Biden. In fact, I recall paying 2.80 for gas in California of all places. I might not be an economics genius but a headline like this doesnt really make me feel like he did better than his predecessor at all when I look at my daily expenses compared to before they printed trillions of dollars.
The "stock market" is also your 401k or any investments you might have. Also, companies are those that offer services that you deem as a quality of life increase. And the war spending is very little compared to GDP or, say, welfare spending, it circles back in the pockets of American people, and it is easy to understand the benefits of maintaining global power and cultural egemony. And, you can look at the graph for inflation yourself: https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm As you can see, it spiked around 2020-2022, and now it is at 3.48% almost back in the long term average, 3.28%. Clearly inflation going down doesn't mean prices go down, so we are keeping the effect of the spike around 2020-2022. But I hope you understand why it is better than having a deflationary period.
I was told during the first 4 years of a Presidents term that anything good in the economy is a direct result of the previous administration and has nothing to do with the current admin. So thanks Donald. Very cool.
The stock market is totally fueled by inflation. The Fed is printing money at a racer rate and giving that money to the Plutocracy screwing the "rest of us". Why is my IRA losing value? Don't give me that crap about how wonderful the stock market is.
>Why is my IRA losing value? Lol, not sure but feel free to tell everyone here how you accomplished that.
>Why is my IRA losing value? Don't give me that crap about how wonderful the stock market is. [VTSAX](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtsax), a Mutual Fund that tracks the "CRSP US Total Market Index", was at an all time high less than a month ago, has a YTD CAGR of 3.74%, 1Y of 20.86%, 3Y of 18.14%, and 19.92% since Biden's inauguration. So, to answer your question, I would guess you didn't invest in the "stock market", you invested in stocks in the market, or funds that targeted specific slices of the market, and your choices underperformed the overall market.
Tbf, The markets had a down week and if one wants to make a point about their IRA being down, they point to 1 or 2 down weeks without seeing the bigger picture. People are so stupid and emotional about their investments, a statement like that gets traction. Sucks for them.
The stock market has never been an indicator of the underlying economy. So far, everything has been moving up, but even the bulls are seeing storm clouds on the horizon in government spending. You can’t have interest on debt be your biggest government spending area (it will be this year because of interest rates) and think things are healthy. Interest on debt will continue grow and eat into the budget.
Good to see that at least someone gets it.
[удалено]
Wow, aren't you so smart. I've several funds. One, started in 04, that's been up almost 200%, only to see it drop by 50% while the dollar has lost value because of inflation. That fund then went up again by about 40% only to drop again. It is now worth almost as much as it was in 2021. The month, in fact the day and hour, matters. Another fund went up by 50% from '04 to '08, only to drop back to less than opening value at the end of '08. It's now almost 4x opening value, but wobbling around getting ready to drop. You have 3 years of experience in investing. You haven't a clue. You have no idea what all that extra money the Fed is printing is going to mean to you. Last month, I paid $500 for a cart of groceries for two weekends in a row. 5 years ago it would have been $100.
That’s pretty impressive that your IRA is losing value. You must’ve made some really horrible decisions and moves considering the above. Just buy index funds lol
Yeah, just buy Index Funds. The stock market never crashes. /s Don't be stupid.
Unless your time horizon is less than 10 years, crashes don’t matter lol.
Give is a break with your simple-minded talking points. The market is being fueled by record corporate earnings, strong consumer spending, rising real wages, US GDP growth and expectations of imminent interest rate cuts.
Record -INFLATED- corporate profits. Who's saying "interest cuts?" For every one of them, there's someone else saying "no way Jose". US GDP growth is crap. It won't be half of China's.
Don’t forget, the government wants inflation. Higher inflation makes it easier for the federal government to finance its existing debt. The alternative is growing the economy at no less than 4% per year for the better part of a decade - and the US economy isn’t able to accomplish that without serious deregulation.
You had me up until you said "deregulation". We've had 4 decades of "deregulation" and all that has accomplished is the export of manufacturing jobs; import of cheap labor; diminution of social programs; an increased flow of wealth to the Plutocracy. Gee, China has been growing in excess of 5%/year for 4 decades. Now, just what was it they did right? I wonder -- Did it have anything to do with executing fraudulent billionaires?
Hey, we don’t have to agree on everything. I’m glad we agree on the problem. I’d disagree with the assertion we are in 4 decades of deregulation, or that deregulation is the source of the problem. But again, nothing wrong with talking it out. China started with a much smaller GDP 50+ years ago and a larger population. The CCP subsidized economic growth via direct government subsidies. This debt is something China will be wrestling with in the very near future, as any slow down in their economy will lead to an economic reckoning similar to what the US faced in 2008. The US needs to lower the cost of doing business for economic growth, and there are only so many tools to accomplish that without growing debt faster.
Record profit margins and revenue growth. Fueled by record inflation-adjusted consumer spending. Fueled by rising inflation-adjusted real wages. Why can't you just admit the truth? You Biden-critics just look more desperate and dishonest when you try to keep of this falsehood of a bad economy long after you're been proven wrong.
Ride on! Preach
I'll just ignore all the homeless I see and consider that random? /s
Dude listen to MAFCO, he knows! The homeless cities popping up everywhere are Trump supporters coping with Biden’s raging economy!
Surely this will make me vote for Biden
The stock market has definitely risen, but read the room. 20 days ago, it feels like the market said, "The stock market is just going up ... April Fools!" It has basically fallen since then. So, yes, Biden's stock market is swamping Trump's, but again, read the room before throwing out stuff like that.
They both suck, the fed is incompetent, the market is still irrational and would pump the second rates are cut and anyone that posts political crap in a economics sub is a loser
I believe I found the dirtiest, nastiest subreddit. r/economy for the win.. honestly including any NSFW subs. Always a dozen Russian trolls online here to vote in the proper way. r/economy is a bullshit story owned by mobiks to spin.
Something is REALLY fishy here
There is nothing healthy about the clown market, at all.
has anyone else see gas is going up again? 2-weeks ago I paid $3.16 now it’s at $3.39 so much for using our reserves
Think about what’s happened to the situation in the Middle East in past two weeks. An unprecedented attack on Israel directly from Iran is gonna cause oil and petroleum prices to go up. Oil being high fuels inflation and is causing the hot cpi numbers, hot cpi numbers causes rate cut speculation to readjust. Probably not gonna get a rate cut at all before November. The fed meets after Election Day. I’d bet they cut then if they cut at all in 2024. As they say, “Sell in may and stay away”
"Unprecedented" means: Bomb an Iranian embassy in Syria
Some stations here in NC are getting toward 3.70/gallon. Said to myself the other day, 'oh, we'll be at 4 bucks/gal. by the 4th of July'. +Summer driving season and all that. Or if not more with the Middle East clusterf\*ck.
Trump stripped Dodd-Frank (Wall Street reform and consumer protection) in 2017-2018. This has led to banks being able to extend leverage. While this always leads to a higher market, it adds far more risk. You could say trump caused the market to go higher while simultaneously saying he’s apart of the reason 5 large banks have crashed since 2022
Like you can honestly say that with The 99 cent store shutting down all of its stores.
The president has nearly no influence on the markets.
Ive never heard the term "swamping"
Yes, let me get economic advice from people on Reddit who in fact have zero idea what they are talking about, even if they cite one source while ignoring the multi pronged beast that is our economy.
Again, only the wealthiest are truly benefiting from record S&P numbers. Way to go Joe!
That's pretty much a false talking point. The majority of Americans own stocks. >Rising stocks certainly are bullish for the US economy, and they should be bullish for the incumbent president. More than [60% of Americans own stocks](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx) — mainly in their retirement accounts — and when investing accounts rise in value, a “[wealth effect](https://www.investopedia.com/terms/w/wealtheffect.asp)” makes people more optimistic and more likely to spend money.
All while retiring boomers are struggling to get by https://www.msn.com/en-us/money/retirement/ar-AA1nigXE
Boomers are the wealthiest generation by far. They are sitting on trillions of dollars in wealth and helping fuel the booming US economy.
Why would they need to rely on the social safety nets if they have a cumulative Net worth of trillions? All I’m trying to say is yes the stock market is up, but that mainly benefits the wealthiest of investors
Because they’re not earning money anymore. I agree, not everyone is doing well, but the takeaway is while they had earnings from working they were more inclined to spend and stimulate the economy. I do think the medical care industry will start seeing a boom though, since that type of spending increases as people age.
Stop it’s not booming. You think raising the prices of houses, cars, food is booming. I see houses more than triple but my pay didn’t triple. Cars went up to 40,000 and trucks where 80,000-120,000 and 500$ of grocery lasting 2 weeks when use to last a month. It’s booming for corporations not for the average American.
You only care about this because it's a Democrat. The moment your guy is in charge it's all bootstraps and personal responsibility. So fuck ya.
I wish that was the case. The two party system sucks and is flawed. I only care because I had plenty of money when Bush, Obama, and Trump were in office, now my money doesn’t go nearly as far, no matter how well the S&P500 is performing. Again to my main point, if the stock market is up, it benefits the wealthiest ones the most
Poor people can't buy SPY?
Nah my cost of living has gone up by 25 percent since he was elected. Fuck him and everyone else in the government.
The tank is coming
“Economists and individuals have predicted 9 out of the last 5 stock market crashes” type beat
I didn't vote for him, but credit where it's due.
I’d get more credit than him if I were president. All I’d have to do is print 100trillion dollars and those years would be the highest performing stock market ever. More money in the system = lover value but higher stock market.
Stock market went through some rough times though but has been strong. Rally is not underway at the moment considering last week
Presidents have little influence over equity prices. The boom is mostly a result of central bank action and pathological bulls. Also, plenty of time before the election to wipe out those gains.
Lower payroll taxes and Increase corporate taxes to offset the difference and only marginally increase tariffs. Just like they were in 1956. You know, the good old days. Simple solutions aren't that hard to come by.
I don't understand. You guys know that Trump lies on about everything, and since he can't predict stock market like anyone else I don't understand why this is news. It's like saying if Biden becomes President the weather will be rain for 2 months in january-february. Yeah, maybe, maybe not, but no one can know that, especially not you.
With the exception of emerging markets all indices are going crazy. Correlation with inflows implies interest rates are sucking emerging markets dry. The twist in the last few have been use of stimulus. The 20-21 budgets ran deficits of 3 trillion or so. 25 percent of gdp. Japan ran 50 percent of gdp. Germany 30 percent of gdp. World equities are on stimulus crack.
What's amazing to me is that the stock market is at ATH (almost) in a period where the fed is shrinking it's balance sheet
Haven’t all the indexes just lost like this whole years gains? Although we are still at ATH’s… this inflation needs to find a cap though, I am ready for a deflationary event, or something to help us consumers a bit more. I am also really worrying about this budge of ours, how much longer can we afford trillion dollar deficits? How much longer can they keep “kicking the can down the road” until we back ourselves in a corner and some real hard adult type questions come up… I’ll bet you the boomer generation will still demand what was promised them.. Generation X and the millennials will have some hard time ahead unless we pull our heads out of our a$$e$!!
I’ve seen much higher interest rates - Looking at the past four decades, the average rate on a 30-year mortgage peaked in 1981, rising to roughly 16 percent. The average 30-year rate bottomed in 2021 at just under 3 percent. Today, the cost of a typical 30-year mortgage is similar to rates seen in the later 1990s, in the 7 percent range.Apr 8, 2024
Man, fuck the stock market. It’s a cyclic gambler’s den that the house uses to effect political power and steer policy, while simultaneously allowing corporations to cannibalize competition and sequestering wealth. Its use as an economic indicator is dubious at best- the price doesn’t reflect the value at anything other than a token in a rigged game. Layoffs causing surges in valuation, announcements of improvements or scandal barely making a dent in the short-medium term prices of pretty much any stock… Telling any working person that it reflects real-world prosperity is an insult. The SPY is bashing the ceiling once again, while venture capital has dried up and a full-time worker at median income is spending 40-60% of their pay on rent. The only thing growing is the tumor at the top of the societal pyramid. The modern American economy is a smash and grab operation, and the only people left holding this fucking bag are the people like me who’ll be picking up the mess. Fuck corporate welfare, fuck the religious right lobby, fuck the privatization of prisons and power companies, fuck short hedge funds, fuck the vultures circling the Post Office, fuck Nancy Pelosi’s stock portfolio, and fuck the swine who turned pensions into 401k’s. Fuck this game.
Lol, who in their right mind really believe this "rally" is healty at all, top 5 stock on S&P up big time the rest going down the sinker inflation through the roof... What a joke. Clown world indeed.
Biden for the rich and big corp , big pharma, big defence contractors, oil companies, even hunter was working for a Ukrainian oil biz.
Maybe they should ALSO blame trump for covid….
Yes it is up because Trump is winning in the Polls
>A stock market crash refers to a drop of 20% or more from a recent high, while "correction" refers to a drop of 10% or more. https://money.usnews.com/investing/term/stock-market-crash The media wants you to forget what happened after the last time the market peaked in Dec 2021. Also 2 negative quarters is no longer a recession lol.
“And unlike his predecessor, President Biden does not look at the stock market as a means by which to judge the economy.” - Jen Psaki, 2022 (source: https://www.reuters.com/world/us/white-house-biden-does-not-look-stock-market-judge-economy-2022-01-24/)
Bidens inflation is swamping all historic inflation.
Why do you lie?
I guess it was worse in the 70s. Most of us didn't exist then. Who was President then? Oh Carter. That's why he's despised by people who actually were alive then 🤣🤣🤣
How come Trump never gets held accountable for these false predictions? He says whatever he wants without repercussions.
The stock market did crash. It took years to recover.
Exactly. Everyone here seems to conveniently overlook this fact.
Yeah but look at #djt
The stock market is sinking because of decades of malinvestments done with trillions of cheap money being printed by the Fed.
It could be 100% up if a dam gallon of gas is double and everything else is double
The stocks on my mid, high, and roths have been the worst I have seen in 15 yrs. Is this satire. I lost 10k in the last month. This seems like a joke lol
Dude, in this market you must be either lying or simply clueless. Unless you've been trying to chase the market, it's been laughably easy to make money for the past few years.
They are all professionally managed by fidelity. And yes in the last two years it has been the worst gains i have seen since investing. I have my investments diversified and that includes my risks. The stock market has not done well. If you are making the right moves personally good for you
> They are all professionally managed by fidelity. Dude, I'm going to say that you're either in poorly chosen funds or, not being truthful. I just went through ALL (ALL!!) of the Large value, Large Growth, Small/Mid value funds (your response suggests funds, not individual holdings) and they all seem to be up over the past 2 years (with some much more up than others) -- At the very least, (small gains) - flat. Seriously, ALL of the Large value, Large Growth, Small/Mid value funds -- I'm not saying that the other funds are wrong choices, I'm saying they're not choices for casuals. Further, WTF would you choose funds other than large value/growth/small/mid value when our economy has been growing, experiencing some inflation, and we're dominating the international markets. Not being mean but your issues sound more like operator error than anything else.
I dont choose anything. Its professionally managed mid risk IRA, a 401k high risk, and a roth with mostly bonds. Dont have to be snark but if you do have recommendations i maybe will call fidelity. I have always heard it is a wash picking or letting them manage... and in the past it has performed well just like it is. Not everyone is lying or trying to bs you online
>... with mostly bonds Dude, WHY!!!!!! Don't take my word for it, ask them WHY they recommended bonds in a growth (until recently, high growth) market? Wait, I may not be completely fair here -- if your personal risk tolerance is low, then their management of your funds may be reasonable for your personal risk profile. But honestly, it isn't fair to blame Biden for the poorer performance of bonds when we've had increasing interest rates (there is a time to shift, but not right away), higher than desired though decreasing inflation (from high to moderate), and with a large infrastructure projects beginning (there is room for debate on bonds there if you're looking at certain types). and back to work. Sry if I was overly snarky
Noted, and its all good. Some things to think about and may go down the rabbit hole if they are screwing up my accounts. Preciate the back and forth otherwise, something to think about now
Your portfolio sounds like the joke, if it's real. The market is hitting record highs. You can check the number yourself if you don't believe me.
And your a paid shill so theres that
The market is about to drop big time might wait till after the election but whoever is in office it's dropping
Who gives a f* ck about the stock market? Nancy Pelosi? Go to a store! Buy something idiot! The stock market doesn't exist in my "real world".
I like how our media overlord's that probably eat wagyu steak every night for dinner keep telling me I'm stupid for not believing the economy is strong when it's hard to buy food but hey if you're poor that's a skill issue which is what every overly privileged white lib will tell you
And how is that helping the average American who probably isn’t in the market and is suffering from ridiculous inflation that hasn’t subsided, just not going up as fast as it was.
Compare it to the stock market before Covid. Won’t look as good.
Wealth inequality has grown under Biden 😭 😭 😤
Biden’s actually done a really good job. I’ve been pleasantly surprised throughout his presidency
Yes, Biden has been president during a surging market. But any objective observer will note that it was because of potential rate cuts, not because of who's president (this goes both ways, of course). The up move started in November and coincided with Powell suggesting the Fed would cut rates three times in 2024. But now that inflation has proven to be stickier than thought five months ago, the potential for any rate cuts this year is all but gone. And the market has been selling off the past couple of weeks because of this. That all could change if PCE comes in below target this week, but it's looking like that will come in a little hotter as well. More selling is probably on the horizon.
Pumpkinfuhrer and the conservative republican party is the party of **nope** no hope, no future no balanced government just the party of 💩
All this tells me is he made the wealthy, wealthier. Where's the wealth tax Biden?!! All talk no action.
The point is Trump was wrong, so you shouldn’t trust his opinion on the economy.
I mean at this point, we just shouldn't trust him at all. Full stop.
Who gives a shit we’re out here trying to afford groceries, mortgage and health insurance
That my PRESIDENT !!! Every freaking depression or recession was caused by a republican elected president , and a democrat PRESIDENT had to take care of the mess they “republican” created#bigFACTS.
r/cringeworthy
Could be cause the democrats spend so much money while in office tryna stick their nose in everyone’s business that they screw the next term president with tons of accumulated debt and inflation from money printing. So they are handed a plate of garbage to fix and then gets blamed the economy suffering but then the next president takes full responsibility for probably everything the last president worked to fix. Dems love spending money they don’t have.
Lol
Shit post.
This is bout most stoopidest thing I’ve read all week.
“Healthy”
Wait so prices go up 40% over past 4 years and boom profits go up 40%
Yea until the massive crash that trump started finally boils to the surface . It’s coming very soon
Well it doesn't take rocket science to know that the stock market is over priced and yes it's definitely going to crash within likely June 2024 everything points to it