So much for those huge revenue gains from tax cuts. No wonder the economy is heating up - all that Keynesian deficit spending! Trump and the GOP are mortgaging our children’s future! The CHILDREN!!
The truly terrifying thing is that we’re obviously in another bubble. When it pops, we have very few tools with which to do anything
When I saw this, I thought it would be easy to find a tea party protest of the deficit spending near me. Alas, I can’t seem to find a single one. I can’t imagine why…
Fed has been raising rates so at least we arent at 0
True, but inflation is still hovering close to 3% now…Fiscal policy is woefully out of line with monetary policy. The monetary policy is responding properly to an economic boom and an era of easy money. Fiscal policy is operating as if we are in a recession. Of course the timing of the next downturn will probably coincide with Democrats taking back congress, meaning they will do the adult thing and get ■■■■ under control just in time to be blamed for a recession and kicked out.
And to think we’re running up these debts just because dumbass donald wants Americans to mine coal.
Exactly. The tax cuts were a ■■■■■■■ terrible idea by almost every macroeconomic measure
It’s Peter Navarro and Wilbur Ross. They’re so out of touch with reality it’s terrifying. Of course Trump is too ■■■■■■■ stupid to understand why we can’t just print more money to pay our debts. (Not that that isn’t a new school of economic thought, but the dumbass doesn’t keep abreast of this stuff).
Wilbur Ross knows exactly what he is doing. This is for the benefit of the Wilbur Ross’s of the world not the US at large.
you owe me a new ■■■■■■■ keyboard.
I’m with you all on the debt and have been waiting to see if the Market will ever show concern. I consistently watch how gold trades and thus far UGLD is at a two year low. Until gold makes significant moves the Market is not concerned about the debt. Now regarding the economy being in a bubble, show me where a significant number of a economists are stating that we are “obviously in another bubble”? Here is something I found:
#### Mark Zandi, chief economist at Moody’s Analytics
The financial system is on much sounder ground than it was a decade ago, prior to the financial crisis, and much less likely to suffer another crisis, at least on the same scale.
Here is the whole article:
honestly, why would a billionaire con man care??
Well, everyone didnt think we were in a bubble in 2007. Most of the time bubbles are bubbles because people are over confident. That’s the nature of a bubble! If people weren’t confident in various sectors there wouldn’t be a bubble. Theres always a huge party before the crash.
They’re scared ■■■■■■■■.
Economists and the Market learned from that. I’m sure you have heard the saying “the Market climbs a wall worry.” The subprime mortgage push was disaster waiting to happen, and there were a number of people who anticipated that. There is nothing going on economically that is even remotely similar. This doesn’t mean a recession won’t happen, but there is nothing I can see to claim that we are “obviously in a bubble.”
There is most definitely an equity bubble due to interest rates being so low. You say “the markets and economists” learned from that as if “the market” and “the economists” all meet up together on Wednesdays and coordinate. I’ve traded microcap stocks actively for over 5 years - you know what a pump/bubble looks like? Euphoria. Cracking open the champaign. Parabolic stock movements. P/E ratios in space.
Its called a bubble because everyone is pumping the sector. To say it’s not a bubble because everybody thinks everything is ok, well, kind of misses the point about why things are called bubbles.
We’ve been in a bull market for 10 years. You have NFLX, AMZN, AAPL and the likes propping up the market right now. Interest rates are beginning to rise so more money will start flowing out of equities and into bonds / savings.
It’s just the normal cycle man. Every 10-12 years, just look at history.
Before every recession everyone parties.
What sector right now has room to grow? Be specific as to why
You may very well be right. This quote I often hear is “that there is 100% chance that we are going to have another recession, I just don’t know when.” All I am saying is that there is nothing I have heard or read that many economists fear that a recession is imminent, or that there is any economic indicators saying that the economy is on shaky grounds. Furthermore I’m not giving my own opinion as noted when I referenced Mark Zandi (https://www.economy.com/markzandi).
I don’t claim to be an economist so I can’t tell you that. Regarding the Market as whole I would agree that it is not undervalued at this point although you can find those who say confidently that it is fairly valued. We are now starting earnings season again so lets wait and see how companies report and what their guidance is.
Here are a couple of technical articles about the corporate tech bubble that should be concerning.