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Yavin4

(35,357 posts)
Wed Dec 28, 2016, 03:56 PM Dec 2016

Why the markets have jumped since the election

The markets have seen sharp increases because Republican economic policies inevitably lead to rampant market speculation. When rich people get tax cuts, they don't use their tax cuts to open a factory in Muncie, Indiana and hand out jobs that pay American middle class wages and benefits.

No, they give their tax cuts to hedge fund managers and tell them to double it in a year, and then double that next year. That makes these hedge funds guys take on more and more risks. And thanks to Trump's de-regulation plans, the big investment banks will also chase these returns and take on these risks. In a low interests rates/low taxes/de-regulated environment, the doors have been flung wide open to the casino known as massive speculation.

Of course this will all come crashing down in a few years and everything will have to re-set, but for right now, the party is on.

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unblock

(51,974 posts)
1. i think the markets are responding to a better economy.
Wed Dec 28, 2016, 04:04 PM
Dec 2016

strong showing in q3 for gdp, and more encouraging statements from the fed. that largely explains the full extent of the recent increase, which is hardly surprising in a market that has gone up steadily for 8 years.

toxic trump's oval office grab explains some of the gyrations for a day or very few immediately after the election, but not much else, notwithstanding cnbc's blatant propaganda effort in calling this the "trump rally".

what toxic trump does is mostly at this point guesswork, whereas hillary would have been rather predictable, between here actual sanity and the political gridlock that would have resulted from republicans still controlling the house, at least.

remember when cnbc for years kept complaining about "uncertainty" holding back the market? well, can't get much more uncertain than an insane idiot in the white house, yet oh, suddenly that uncertainty is the cause of the increase? yeah, right.

yallerdawg

(16,104 posts)
2. That's right.
Wed Dec 28, 2016, 04:05 PM
Dec 2016

Pundits are saying this is a sociological rally, not an economic-fundamental's rally.

Bush 2.0 and his Great Recession taught the 1% one thing - they need a lot more chips and they know Republican policies will get them!

"Place your bets - only the little people lose!"

Blue Shoes

(220 posts)
3. Trump will deregulate everything.
Wed Dec 28, 2016, 04:08 PM
Dec 2016

Which will lead to short term gains which investors want to capitalize on.

It will also lead to market bubbles, fraud, greater wealth inequality, and a ruined environment.

Yavin4

(35,357 posts)
4. And a major economic collapse along with another bailout
Wed Dec 28, 2016, 04:13 PM
Dec 2016

By that time, they'll hand power back to the Dems and plead that they bailout the banks or we'll face ruin.

pbmus

(12,418 posts)
5. Your time frame of years is incorrect...
Wed Dec 28, 2016, 04:16 PM
Dec 2016

They are trading millions of stocks in milliseconds...the big con has doubled his portfolio since the election.

If you would have invested 1000 in bank stock on Election Day you would have at least tripled your investment by now...

The timing to get out of the market is when the big con starts taking profits...about end of February March 2017

SeattleVet

(5,468 posts)
7. The stock market also rose to unprecedented highs right after the 1928 election...
Wed Dec 28, 2016, 04:47 PM
Dec 2016

when the GOP tok control of the House, Senate, and White House.


That lasted almost a year, until October 29, 1929. Also known as 'Black Friday' it was the beginning of the crash that marked the US's entry into the worldwide Great Depression.

 

TheHak

(71 posts)
8. Nothing to do with hedge funds
Wed Dec 28, 2016, 05:18 PM
Dec 2016

Hedge funds have been the big losers of all this qe liquidity.

And they arent getting fresh money.


Yes companies arent going to create new jobs. They already had so much cash that they were buying back stocks like there was no tomorrow.

Give them an additonal tax credit and they are just worth a little more (simple dcf). As simple as that.

Yavin4

(35,357 posts)
11. The rich give their tax cuts to the hedge funds to gambl...uh...speculate
Wed Dec 28, 2016, 05:54 PM
Dec 2016

That'll happen sometime next year. The bump in the market is an expectation of massive asset speculation including stocks.

AwakeAtLast

(14,112 posts)
12. I will be cashing in my 401K
Thu Dec 29, 2016, 01:22 PM
Dec 2016

My plans have been in the works for awhile, but after recent events, I have never been more convinced that I am making the right decision. I hope I am able to get it done before it crashes.

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