During an impromptu Rose Garden barrage of self-serving bluster today, the Donald reminded once again that these are bizzaro times. What he correctly identified as “one big fat ugly bubble” when the S&P 500 was at 2112 during the campaign has now become, mirabile dictu, a ringing vindication of Trump-O-Nomics at 3012:
We just hit 27,000 plus on the Dow…it’s the highest the stock market has ever been……. If these people that I watch in those debates ever got their hands on the United States government, 401-Ks , the values of your companies, everything else we talk about we are so proud of, it’s down the tubes. People will loose their money, they’ll loose their wealth, you will have a crash like you’ve never seen before. And I am really good at this stuff. I know what I am talking about.
Actually, we would beg to differ. Profoundly.
There will indeed be “a crash like you’ve never seen”, but it may well happen long before the next election, and on the Donald’s watch, not theirs.
That’s because all the Donald’s ridiculous bombast and braggadocio can’t change the facts on the ground.
To wit, were are at the tail end of an aging, sickly business cycle expansion that is now a record 121 months old; the US economy is freighted-down with crushing public and private debts, which now totals $73 trillion and 350% of GDP; and financial asset markets are so swollen with artificial liquidity and falsified interest rates that the chances of avoiding the third crash and financial crisis of this century are somewhere between slim and none —-and have been since the very day Trump took the oath.