Trump Tweets Dow 22,000 Today: Embraces Big, Fat, Ugly Bubble

Tyler Durden's picture

Having dismissed the "big, fat, ugly bubble" during his campaign, President Trump seems more than willing - in his apparently desperate search for a win - to embrace the bubble now. Continuing the trend over the weekend, Trump's first tweet of the morning crows of his massive market gains since election...

We tend to agree with Peter Schiff on this - it's a mistake for Trump to 'own' the stock market's gains...

Chances are, Trump realizes that most people won't look at a chart of the stock market and he just wants some good PR.

The president wants people to think that he is the reason for the stock market bubble.

This is a big mistake.

The Fed is the premier member of the so-called "Deep State". In fact, without The Fed, there would hardly be a "Deep State" to speak of.

The Fed sits at the top of the Deep State. They have the ultimate power (that no human beings should ever have) to create new money out-of-thin-air.

In case Trump hasn't figured it out yet, the Deep State does not like him.

Should a major decline in the stock market occur during Trump's Administration, guess who will take the blame?

President Trump.

After all, he took ownership of the bubble!

Should the market tumble, the mainstream media (that also despises Trump) will have plenty of his quotes, YouTubes, and Tweets to use against him.

The economic woes will be pinned on Trump.

Will Trump deserve the blame? No, but it'll be too late.

?This is not to say that a major decline will occur during Trump's tenure. Bubbles can take on a life of their own, and this one may last during Trump's full term.

But that's a risky gamble to make.

This bubble is going on almost 10 years now without a serious decline.

Should we see a major selloff, Trump has very few friends in the major power centers that will come to his aid.

As Peter Schiff points out in this fantastic clip below: The Fed now has their fall guy:

President Trump went on to say...

But there is one big problem with that...

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lester1's picture

And this bubble will continue thanks to the Federal Reserve's Plunge Protection Team aka PPT  covertly buying stocks!!

Looney's picture

 

Meanwhile, Iran files a complaint with the UN Security Council, accusing the US of breaching the Nuclear Deal with the anti-Iran sanctions.

I don’t think the Iranians will show the same patience and restraint with our belligerence as Putin and Xi have.

I betcha, the Iranian Nuclear Program will be un-mothballed in no time.

Looney

Countrybunkererd's picture

Am I in a dream?

I look around and see masses of people just staring at the screen in front of them, mouth open, drool running from the corner.  I look left, look right, all empty faces staring at a screen.  Wait, across the crowd, ONE person looking back!

 

JRobby's picture

What bubble?

Market caps are only averaging 125% of GDP. Surely 200% is attainable?

Never One Roach's picture

A fw months ago I looked at Boeing and it was 116.

 

Today it is 242!

BullyBearish's picture

would a trumptard, any trumptard please explain to me how the deep state is SO AGAINST trumpanyahoo that they're getting back at him by keeping the market at constant ATHs...

 

Beuhler....Beuhler....

Bes's picture

is this 4D chess? 

5D chess?

11D?

fucking morons.  

he loves wall street.  he is wall street.   he loves the FED.  He loves QE.  Zero interest rates.  Fractional Rerserve Banking.  Goldman Sachs Cabinet.

"I am the King of Debt."

not to mention he is all for civil asset forfeiture.

gee.... where is he on the war on cash?

fucking silent.   that's where.

this is winning?

hahahahahahaha!

#maga

 

Kotzbomber747's picture

Our self-proclaimed "King of Debt" flip-flops yet again, and all the Trump fanboys here (supposedly "highly educated") don't even notice.

The biggest and fattest bubble is the ego of the Orange Jesus and Commander in Tweet himself.

What an incredible disaster is that guy, and the American people in their 'wisdom' elected him...

skbull44's picture

DT is either in on the scam and setting himself up to take the fall for any 'correction' or he is the biggest buffoon going....or perhaps a bit of both...

barndoor's picture

This market looks like DJT's fat ass stuffed into a pair of golf slacks. 

Not a great look, and I'm surprised that Trump is letting himself be seen this way.  

Dormouse's picture

Look, I'm not a market guy. I like ZH because it's edgy and the comments are sarcastic and intelligent and humorous. So let me ask this stupid question.
Trump talked about the bubbles during his campaign. Is it possible for the markets to burn up rather than pop and collapse? Like a runaway Diesel engine. He knows and presumably understands the sort of Rumplestiltskin magic the Fed and Wall Street were using to prop this shit up; now that economic conditions have changed and he's been nullifying countless regulations on all fronts, is it possible for this Ponzi scheme to go hyperbolic rather than crash?
Down vote me, call me an idiot, but could the smartest one amongst you please give me sensible answer.

PT's picture

At first I thought Trump was an idiot for taking ownership of the bubble, especially when he is up against such a hostile MSM.  Now I have decided that he may as well pretend ownership of it.  Who's going to call him out?  Who is going to say, "No, Trump.  It was a bubble all along.  Watch me pop it"?  It's like he's taunting them.  "Come on!  Pop it!  I dare ya.  I'll even write my name all over it so you can blame me!  What are you scared of?" 

If the bubble pops then all Trump has to do is say, "But YOU told me that ... I blame my position on mis-information supplied by ... Let's investigate how long they have been lying to us ..."
Or maybe he has reason to believe that the bubble can not be popped.  Who is going to admit that the assets they own are worth LESS than what they previously stated?  If you have ten billion dollars "worth" of assets and nine billion in liabilities, would you suddenly admit that your assets are really only worth five billion?

I hate to pull the "4D chess" motive but taking ownership of the bubble with no plan B is too stupid to make sense.  You don't get anywhere near Trump's level by being that stupid.  Hell, you probably can't even run a deli on that level of stupidity.

Yes, the bubble does not have to pop if hyperinflation allows all the other prices in the economy to catch up to debt and other asset valuations.  And it is probably preferable to TPTB to the scenario I outlined above (admitting that they are all under water).  Mind you, even with hyperinflation, the banksters lose "market share" so they would rather keep things as they are for as long as possible, where they make more and more off of less and less.  Hence my assertions in other threads that one day people will be borrowing money every week just to do their weekly shopping.  The banksters don't need you to pay the money back.  They can print and borrow and be bailed-out all the money they will ever desire.  What they really want is pieces of paper with your name on it saying that you owe them billions of dollars.  Can't repay?  Who cares?  They don't.  They just want "proof" that they already own all of your stuff, including the rest of your labour and the labours of all of your descendants.  The banksters print and lend funny money that they know can not be repaid so they can reposses and own the whole world, including all future labour.  Then they just need to make sure not enough people wise-up to what is happening, and that those who do wise-up are never in a position to be able to retaliate.

Trump is playing Bubble-Chicken.  "I've written my name all over the bubble.  I'm going to take credit for all the "good" stock market moves.  Pop it.  Try and pop it, even with my name written all over it.  I dare ya!  Not gonna pop it?  Well someone is going to take credit for it.  May as well be me."

Yeah, I could be wrong.  Time will tell.

auricle's picture

How does he reconcile what he said on the campaign trail with what he's saying now? Perviously it was a fed induced bubble, now its a Trump induced strong economic indicator? Dissapointing rhetoric. 

Rainman's picture

....and Election Day was 9 months ago, not 6.

< yes we are soooo fooked >

The Wizard's picture

What do you expect with Trump's ego and his Goldman pals convincing him he is The One.

The Goldman boys know the masses are upset and there is always going to be some form of blowback. It's getting more difficult to tell what strategies and tactics are based on the Art of War. 

virgule's picture

I'm calling a top!

Oldwood's picture

Is it a coincidence that Venezuela's market is at an all time high today also.

How GREAT is this world we live in, where delusion becomes reality?

barndoor's picture

The chess is at least 11D.  Maybe more, but it becomes difficult for us mere space-time beings to discern after a certain point.

The point is, with enough dimensions in play, all this COULD make sense (on some level) and we do not need to confront our believe that Trump is competent. 

general ambivalent's picture

Make America Goldman Again!

earleflorida's picture

who was it that said[?], 'deficits don't matter'...as we can see today is a, 'matter-of-fact'! 

earleflorida's picture

you can only go so far ahead in chess, as time is your worst adversary... and then all moves become counterproductive --- [and], in essence your own demise because of your opponents gaming knowlegde of your disciplined thought process!?! 

veritas semper vinces's picture

"

is this 4D chess? 

5D chess?

11D?"

 

I think it's 5 D piss running down our head.

BigFatUglyBubble's picture

No comment on Schiff atm, but after the shemitah bullshit, Jeff 'the dollar vigilante' Berwick is irrelevant.  There are lots of rumors, assumptions, and plain lies in that hit piece you linked to.  Just more drama to drum up jootube clicks to make more joobucks.

JRobby's picture

Last time we saw anythin near this ratio was right before the tech bubble burst.

We recall the "hearings" in the aftermath of that? "What a POS" etc., etc.

Countrybunkererd's picture

Where is the money coming from?  My case for (fill in the blank):

A two income family each making $20 dollars per hour.  That is 83,000 dollars a year.  I will use 85,000 for simplicity.

Take out:

Federal Taxes:  (15 & 18 percent bracket- will only use 15%)  = (15,000 dollars)

SS & Medicare (15.3 % will use 7%/ employer pays half) = (7,000 dollars)

State & Local Taxes (Not standard and will use 5%) = (5,000 dollars)

Home +RE TAXES or Rent (highly variable will low ball at 1.5K/mo) = (18,000 dollars)

2 Cars (assuming that everyone "Needs" their new shiny car to impress neighbors so they lease them at 300/mo each) = (7,200 dollars)

Health Insurance (self employed rates for this one and variable will use 1200/mo) = (14,400 dollars)

Gas (again variable will use 2 tanks per week at roughly 400/mo) = (4,800 dollars)

Food (150 dollars per week) = (7,200 dollars)

Electricity, AC, Heat, Water, (300 dollars/mo) = (3,600 dollars)

Phones and connections (300/mo) = (3,600 dollars)

EXPENSES: 85,800 Dollars

The Median Household US income in 2015 was roughly 60K

Who can dump 5-6K each into their 401K or IRA?  I understand these numbers are highly variable depending on lifestyle and location.  But the money just isn't there.  PERIOD.  Add clothes, children, etc. and what then?

 

 

Countrybunkererd's picture

Adjust 3,300 to the positive.  The taxes are based on 100K as pointed out elsewhere.

PT's picture

Yep, I noticed a similar problem ~ 15 years ago.  Write out a budget for someone on minimum wages.  Write out a budget for someone on average wages.  The numbers simply DO NOT add up.  I'm surprised it has all lasted this long.  And I'm talking numbers for a single person.  I have not added wife and kids into the mix.  Hell, I don't even add clothing or repairs (house or vehicle) and already 80% of the population is underwater.

Need to get really friendly with a few accountants.  Maybe they could "explain" it to us.

In my area I noticed peak insanity back in 2004.  It got a little bit worse after that but not at the same rate.  Since then I haven't kept track to the extent I used to.  Just recently I have noticed a few prices that are LESS insane than a few years ago, so maybe things are starting to improve in my area (outside the US).  Or it could be that record unemployment is forcing prices to LOOK more sane when really they are still as fanciful as before.  Perhaps I should start paying more attention again.

Eyes Opened's picture

You can't see the bubble when you're INSIDE the bubble....

Al Gophilia's picture

You're out of the loop, man. You're one crazy MF. How do you survive out there?

True Contrarian's picture

And unfortunately it's just your reflection in a window. They're ALL asleep.

Mr.Sono's picture

Greenspan warns

https://www.bloomberg.com/news/articles/2017-07-31/no-bubble-in-stocks-b...

 

As much as I hate this banker, I think he is right on this one.

tmosley's picture

You really have to be quite a simpleton to think that the value of the stock market is driven by a single variable.

Trump IS a YUUUGE variable, as he is so very much pro-American business. It makes sense for stocks to rally with him as president. But other variables can become more important over time. "Money on the sidelines" may drop to zero, precipitating a crash as people seek liquidity. No amount of enthusiasm can keep prices going up when there is no more money to buy.

Bay of Pigs's picture

Speaking of simpletons....

BigFatUglyBubble's picture

@tmosley - Trump is so very pro American Business... is that why he makes his ties in China? 

Also...

Trump Winery is trying to hire foreign workers - Dec 2016 - http://nypost.com/2016/12/22/trump-winery-is-trying-to-hire-foreign-work...

Awaiting some kind of distraction and ad hominem attack....

Honestly you must be on the payroll of trump or tyler, clinically insane, or retired and bored.  You need a new hobby, perhaps whittling. 

dirty fingernails's picture

Mar-a-Lago applied for 70 foreign workers too, to be maids, cooks, and waiters. Not exaggerating. Apparently maids, cooks, and waiters aren't anywhere to be found in the US. MAGA LMAO. Fuck him.

http://www.cbsnews.com/news/mar-a-lago-requests-more-foreign-worker-visa...

SubjectivObject's picture

I am soooo happy to see oligarchs out themselves as dopes.

It's a source of inspiration for we the peons.

dirty fingernails's picture

Its a clear signal that we are on our own

SteveNYC's picture

He's walking right into "their" trap....putting it all in writing.....making historical notes.....setting himself up for a fall of epic proportions. 

Give the Deep State one thing - they knew the right buttons to push with Donald. THe ego will get you every time.

NugginFuts's picture

Trump IS the trap. Don't you get it? America already walked into it. 

SloMoe's picture

Perhaps Russian money is holding up the market...

Cosmic Energy's picture

Trump wants to own the stock market bubble? Good luck, the FEd and BIS found finally their new scapegoat!

onewayticket2's picture

bingo.

 

but if this had happened under HRC, the press would have as its Top Story:  "Hillary has ALREADY created X,000,000,000,000.00 in wealth for Americans!"

Cosmic Energy's picture

Trump wants to own the stock market bubble? Good luck, the FEd and BIS found finally their new scapegoat!

Sliced into ribbons's picture

Trumptards can just blame Obama when the whole thing collapses.

Bill of Rights's picture

Why not you dumb fucks are still blaming Reagan...

shimmy's picture

While I don't truly want it given most of my liquid assets and my business is tied to the markets, it would be a bit amusing to see the markets collapse soon just so I could see this pumpkin coloured jackass do a 180 like he does with everything else.

tmosley's picture

As you can see with the above comment, late-stage TDS is often fatal.

Bill of Rights's picture

Your Business? sorry son you own nothing.

Barry Obama