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

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...

Comments

Bes BullyBearish Tue, 08/01/2017 - 09:30 Permalink

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 

In reply to by BullyBearish

Kotzbomber747 (not verified) Bes Tue, 08/01/2017 - 09:52 Permalink

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...

In reply to by Bes

Dormouse barndoor Tue, 08/01/2017 - 11:16 Permalink

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.

In reply to by barndoor

PT Dormouse Tue, 08/01/2017 - 12:55 Permalink

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.

In reply to by Dormouse

barndoor Bes Tue, 08/01/2017 - 09:56 Permalink

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. 

In reply to by Bes

Countrybunkererd Never One Roach Tue, 08/01/2017 - 10:02 Permalink

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 DollarsThe Median Household US income in 2015 was roughly 60KWho 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?  

In reply to by Never One Roach

PT Countrybunkererd Tue, 08/01/2017 - 13:08 Permalink

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.

In reply to by Countrybunkererd

tmosley lester1 Tue, 08/01/2017 - 09:03 Permalink

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.

In reply to by lester1

BigFatUglyBubble Bay of Pigs Tue, 08/01/2017 - 09:58 Permalink

@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-wor… 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. 

In reply to by Bay of Pigs

shimmy Tue, 08/01/2017 - 09:00 Permalink

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.