Category: Politics, Religion & Money

https://youtu.be/iHaeCNPxZ6M

Thanks to the effects of the virus on the economy, here at last is an all-too-brief discussion about the Federal Reserve’s role in propping up Wall Street, at the expense of the real economy.

As I have said before, the stock market has been over-inflated for years, due to interest rates being held artificially low. With no money to be made in safely insured accounts, such as Certificates of Deposit, it went to equity investments, helping to inflate the market. The Federal Reserve should have been raising rates a long time ago, but didn’t thanks to the core rate of consumer inflation being very low, while income inequality continued to grow. As always, investment bankers became addicted to the bull market, and refused to see the weak ground it was running on.

The last hike in interest rates should have been left in place. The fact that the Fed lowered rates last year was proof that Jay Powell was, at best, using outdated thinking and, at worst, responding to pressure from Trump. Powell needs to see that we can’t return to business as usual, and he must lead the Fed into taking on the role of fighting inflation on Wall Street. It won’t be easy, because if there is a lessening of income inequality — which will require a more progressive tax policy — there is the risk of returning to the days of consumer inflation.

Responsible reporting, intelligent analysis.

Some of the same numbnuts who were screaming about death panels when the Affordable Care Act was under consideration are now promoting… death panels.

Let’s compare the Dow Jones index at the end of trading yesterday to the day before Trump’s inauguration:

January 19, 2017 – 19,732.40
March 20, 2020 – 19,178.98

All of the gains that he was constantly boasting about have been lost. Estimates of unemployment in the 3rd quarter are upwards of 20%. Instant economic Depression! As predicted by many of Trump’s critics, he is incapable of handling the demands and strain of a genuine crisis.

Trump’s telling governors that it’s up to them to do the Federal government’s job of providing emergency medical equipment, and he’s falsely claiming an anti-malaria drug will protect against the virus — with Dr. Fauchi standing right behind him! Then he went totally ballistic on a reporter. He usually saves this level of hate for black women.

Trump must be tremendously (he loves that word) frustrated, being denied the love of loyal supporters at his rallies. Remember all of those right-wing-nuts saying that Bill Clinton was “unhinged?”

Finally, at long last, are they finding their shame?

Here’s a recap of what the Stable Genius has had to say.