Symptom of what's wrong with the US economy

[Johnny2X2X]

https://finance.yahoo.com/news/stock-market-news-live-updates-june-1-2022-112445431.html

Stock market news live updates: Stocks slide after economic data impresses
"Data from the Institute for Supply Management showed the U.S. manufacturing sector grew faster-than-expected in May, another signal that fears of an imminent downturn in the U.S. economy may be overblown."

Good economic data sends stocks lower. Basically, the rich have bet against the American economy and the American middle class. So much so, that good news for them results in lower stock markets. The economy was too good, so we had some inflation, so the Fed decided to reel the economy in with rate hikes. And the rich hedged to gain if there is a recession, now the markets are going down because a recession might not be coming.

This is how screwed up it is. They want workers to suffer to fix inflation, they want to hurt workers to help their investments. It's just all wrong.

[TheRealNorth]

1. +1

Wall Street want to put the Fascists back in charge, because they fear Democrats might actually finally do something to close all the tax loopholes that allow them to dodge paying taxes.

[Johnny2X2X]

2. Basically, workers have gotten too much

I know it's never talked about on the News, and barely mentioned here, but 2021 and into this year was the golden age for the American worker. Workers have finally gotten more by making employers haver to compete for them. Yes, Inflation was and is an issue for working people, but unemployment is near record lows, and wage growth is reaching the highest levels in decades. Job growth is at all time records and GDP growth in 2021 was the highest in 40+ years.

The ruling class saw that Biden was rebuilding the Middle Class and decided that working people were getting too much and have now bet against the economy. It's how the system works, the rich never lose, the working poor never gain for very long.

[Baked Potato]

3. Dammit, I thought the "makers" were the good guys...

[IronLionZion]

4. We want stuff to be made in America

It helps supply chain issues and reduces oil/shipping costs. It creates jobs and helps reduce inflation.

So, the stock selloff is because investors think good news shows the economy is strong enough for the Fed to raise rates more. They've already announced they would to control inflation so it shouldn't be a surprise to anyone. Fed has a meeting June 14-15 where they will announce a rate hike, then July 26-27, then again in Sep 20-21

It's stupid to bet against America. When our economy is strong and stock prices are low, it's a good time to invest. Some sectors will do better than others in various times. Growth benefitted greatly from low rates for way too long. Income is looking good for the near future.

[Johnny2X2X]

5. The rate hikes are already priced in

Fed has basically said count on 50 points in both June and July.

On making more stuff here, who's going to do this work? We already can't find enough workers, I doubt bringing back extremely low paying manufacturing jobs is going to improve anything.

I agree, never bet against America and the American worker. Growth has been extremely strong, 2021 was an incredible year with 7% GDP growth, but interest rates have been near 0 for several years, the reason 2021 was so great was that because of the American Rescue plan, we invested in regular people who are the real drivers of the US economy.