Got to thinking about the New York Stock Exchange #NYSE after Trump once again gleefully pointed out its consistent performance since he took office January 2017.
Record-breaking in fact. “The world has never seen such a spectacular increase in the value of the Stock Exchange. It keeps going up and up!”
Does anyone else think something about that is weird? I’m not an economist, nor an active stocks & bonds type but I had the great opportunity to learn about “playing the market” from my sister, brother & father. I know enough through observation over many years that I believe the exchange is not responding normally to conventional market & consumer confidence indicators .
In the last 9 months, why have there been no significant downward adjustments?
Why has there been a 5000 pt increase since Election 2016?
What factors account for a 25% rise in the NYSE in such a short period in the chaotic environment Trump has created?
The hurricanes and fires with its enormous cost in damages are always expected this time of year. But we did not know Trump would blow up our national health care system two months before Christmas by signing an Executive Order summarily stopping federal “subsidy” Medicaid payments to health insurance companies.
He made it very clear “they are lining their pockets, getting rich off of taxpayers & they’re not providing GREAT HEALTH CARE to the people of the United States.” These are the same insurance companies, however, that cover the entire population. The plans tailored for Obamacare are disappearing, certainly some health insurance companies will suffer severe losses. To recoup these losses I see premiums going up for everyone.
The health/medical industries account for 1/6th of the United States economy. With Trump’s Executive Order, millions of Americans have been thrown into uncertainty, confusion and fear about losing their health insurance. Confidence in the future is at best cautious. The most responsible response by consumers, of course, is to tighten our belts. Instead of buying that new flat screen TV or jewelry or more toys for the kids during the Holiday Shopping Season, we should put that money away JUST IN CASE.
How is it possible this dynamic uncertainty – across entire industries and populations, negatively impacting the future budgets of millions of American households -not be reflected in the New York Stock Exchange?
Proposed Trump TAX REFORM legislation.
The Obamacare subsidies can now be redirected into traditional tax cuts as detailed in the Trump Tax Reform legislation. Even taking into account that the wealthy pay more taxes and, thus, it is logical they would reap larger benefits, the details of the package make it clear the top 1% will receive a disproportionate share of tax relief.
Repeal of the Inheritance Tax (so-called death tax) was heralded by Trump as
Taking Medicaid from the needy & transferring it by trickery to the ultra-wealthy (multi-billionaires) appears to be part of their end-game.