"Big Mistake": Trump Slams Market For Going Down On "Good News"

Seemingly furious with the inability to tweet about the market's relentless meltup anymore after the biggest point drop in Dow Jones history, Trump decided to take a passive-aggressive approach this morning, and the president who less than two years ago called the market "one big, fat ugly bubble", tweeted the only thing he could in the current context, namely stating that the stock market is now dropping on good news, contrary to what it used to do in the past. Trump's conclusion: this is a "big mistake."

"In the “old days,” when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!" Trump tweeted.

While it was not explicit just which "good news" Trump had in mind, the problem is that "good news" at this juncture means higher rates, something the soaring 10Y at 2.80% confirms.

The irony here is two-fold.

First, Trump's fiscal stimulus plan will make the "good news" even better, further reducing slack, and forcing the Fed to remove even more accommodation by rising rates, which - of course - will send the market reeling, as the S&P is where it is not due to the state of the economy but thanks to $15+ trillion in central bank liquidity, something which Trump clearly was aware of in Sept. 2016 when he told Reuters that "The only thing that is strong is the artificial stock market." Oh, and he also told the WaPo in April 2016 that  "I think we’re sitting on an economic bubble. A financial bubble."

He was right.

Second, and more important, is that Trump is already aware of all this: in September 2016 it was Trump himself who said that "The only thing that looks good is the stock market, but if you raise interest rates even a little bit, that’s going to come crashing down", once again adding for good measure that "we are in a big, fat, ugly bubble.”

And now that Trump finds himself trapped for having taking so much credit for the market's surge since the election, one wonders if Trump will then admit that the inverse is true: that stocks surge on bad news - i.e. more QE and lower rates as deflation returns... and just how will Trump reconcile that particular non-sequitur in the coming weeks.

The biggest problem for Trump, however, is that he now "owns" the market: which was great for Trump on the way up, but any crash and it will be Trump's fault, precisely as the real culprit behind the bubble, the Federal Reserve, wanted all along.

 

Comments

Déjà view BigFatUglyBubble Wed, 02/07/2018 - 10:25 Permalink

"GOOD NEWS"!

Trump claimed that he dumped all of his stocks right before the Black Monday crash in 1987

"They told you so!" crowed the lede of a Wall Street Journal article the day after the crash, October 20.

"I sold all my stock over the last month," Trump told the Journal.

Trump also predicted terrible things ahead for the market.

"I think the market is going to go down further, there are just too many things wrong with the country," Trump said.

http://www.businessinsider.com/trump-sold-stocks-before-black-monday-cr

Do As I Say! Not As I Do!

In reply to by BigFatUglyBubble

Giant Meteor SubjectivObject Wed, 02/07/2018 - 10:52 Permalink

I loved his quotes, pre-selection. Told the truth. Either he actually understood it or was spoon fed his lines, like the inaugural speech. Suddenly, within weeks after being sworn in, "Look at that BIG BEAUTIFUL MARKET, ain't it great folks!?

I mean good christ almighty, one does not to be an actual rocket scientist to see the don's gargantuan style egotism and hubris for what it is .. and anyone remotely paying attention, knew that Trumps pre-selection comments, were of course, the actual reality of the situation.

So you're tellin me that folks say all kinds of shit, just to get selected?

What   A    Fucking     Shocker   !!

In reply to by SubjectivObject

giorgioorwell NugginFuts Wed, 02/07/2018 - 11:18 Permalink

He really is a simpleton.  He could have really garnered some respect in the long term if he held the line on criticizing the FED's blowing up of market bubbles, instead he wanted a piece of the action and to own the bubble on top of the bubble, and will get burned for it.  He's in bed with Wall Street every bit as much as every president before him.

In reply to by NugginFuts

Scipio Africanuz NugginFuts Wed, 02/07/2018 - 12:20 Permalink

He trapped himself with his megalomania. He abandoned his instincts for cheap fame, his "real" enemies, the global bankers fed him hang rope, like a foolish rabbit, he grabbed it, they tightened the noose, like a clueless antelope, he adjusted it, they pulled, he squealed! 

This is just stage one, next stage, he'll beg for mercy, they'll ask him to betray US, he will! He's trapped! 

In reply to by NugginFuts

Give Me Some Truth NugginFuts Wed, 02/07/2018 - 12:34 Permalink

Virtually every day the "markets" for gold and silver go down on "news" that should be bullish for "real money." Often by large percentages (see Monday for example 2,756 of this phenomena).

Trump's never commented on this (like almost everyone in the financial press). None ever will either.

Stocks go up. Precious metals stay the same or go down. So it has been written, so it shall be.

In reply to by NugginFuts

Ruger556 NugginFuts Wed, 02/07/2018 - 14:34 Permalink

Why he did that I can never guess.  If I were him I would have stated that the stock market is doing great, but my policies are aimed at getting America to work/growing jobs, reducing the size of government and lowering taxes.. If the stock market does well that is ok, but we are not basing the entire economy on the stock market....There is more to an economy than stock prices.. 

 

I myself would have also added reducing debt as that would also help us, but it appears Mr Trump is not interested in reducing debt.

In reply to by NugginFuts

Give Me Some Truth r0mulus Wed, 02/07/2018 - 12:39 Permalink

Once upon a time, unlimited money-printing, massive deficits and borrowing and inflation fears guaranteed that the "safe haven" assets of gold and silver would go higher. Today, these events guarantee they will stay the same or even go lower.

Something changed in the "markets." Somebody high up decided that the things that had happened in the past couldn't happen in the future if the printing press was going to continue to work as needed.

In reply to by r0mulus

Bondosaurus Rex r0mulus Wed, 02/07/2018 - 12:53 Permalink

Trump is a business man. His first big money made was turning around a worn out property. Wilbur Ross the Sec Of Commerce was a Rothschild employee. Not a conspiracy theory. He even said in an interview where he worked. The "why " you ask is a great question. The tax breaks and the increase deficit spending along with a market correction are not mutualy exclusive. The current equity market has not been supported by profits. It has been supported by money printing. There are traders in their THIRTIES that have never had to fade a trade or deal with a liquidity crisis. Trump has seen five major corrections. He has been wise to take advantage of all of them as well as Wilbur Ross has in the past. Equities will rise with all the projects planned. But strong hands want the weak hands to have a crisis to hand over their assets.

As an aside. It is no small coincident that the markets were kept up for so long under Obama. Many think Yellen did it to help Obama. I differ with that. Barry Barak Soetoro Obama ran a huge kleptocracy. They did not want him in control during the correction. He royally fucked up the last correction. They kept the bubble inflated and hid the money in stocks and overseas. Now the money is coming back and the money will be regathered through the shorts in the market.

In reply to by r0mulus

r0mulus Bondosaurus Rex Wed, 02/07/2018 - 16:06 Permalink

Well I really appreciate the thorough reply and explanation. Makes sense that they would trust Trump more not to do a new-deal style social program when the crash does come. I think he is likely to sell out anyone or thing in his possession to keep the stock market up though. Makes me think that they will force him to sell out fully before finally pulling the plug, if it is to happen...

In reply to by Bondosaurus Rex

Bondosaurus Rex r0mulus Wed, 02/07/2018 - 19:48 Permalink

"I think he is likely to sell out anyone or thing in his possession to keep the stock market up though."

 

He sells that idea brilliantly. And people are not suckers for believing it either. The big money in investment is investing at market bottoms. Obama ruined the market forces that were supposed to take place the last crash. Trump will step out of the way. It is better for this correction to happen now than later. Market corrections cure malinvestment, misinvestment and chicanery. It allows technologies to be assimilated and used by stronger hands while the technology is still relevant.

Trump already has the excuse in place for the crash. He will use "A lost in faith due to the crooked government/deep state. Or he may use that the media pushed a narrative that was believed and this caused a panic. The fundamentals in the market are better and the government is in a good spot. The equities getting cleared out and cash moving is all that is left. It will be a "V" shaped recovery.

In reply to by r0mulus