Dingbatt: Wow, only 2 pages and already way off topic.

Yeah, sorry, that is my fault.

What's on topic?

World markets are having a bad day, and Trump's having a bleat about the Fed's doing the tightening that should have started before the US election.

Who knows - today could be the start of GFC VII.

Fred99:

What's on topic?

World markets are having a bad day, and Trump's having a bleat about the Fed's doing the tightening that should have started before the US election.

Who knows - today could be the start of GFC VII.

Dingbatt:

Fred99:

 

What's on topic?

 

 

 

World markets are having a bad day, and Trump's having a bleat about the Fed's doing the tightening that should have started before the US election.

 

 

 

Who knows - today could be the start of GFC VII.

 

Don't we need to go through GFC II, III, IV, V, and VI before we get to VII?
:-)

Depends when you started counting.

False alarm.

Futures are up, Trump can claim sole credit for a yuge climb on Wall St tonight, until next time.

Back on topic - yes markets will always eventually self correct often the reason they don't is because they are propped up longer than they should be

I think we may be at a turning point now:

US Equity market indices are now all below 1 Jan value - and well off 2018 highs.  With the tumble on Wall St last night probably due to follow through to Asian markets today, those markets were already within a whisker of being officially "bear" markets - they probably will meet that definition by the end of the day. US markets are not (yet?) close to bear territory.

It looks like Trump has killed the WTO.
It looks like Trump's tariffs are having the impact basically everyone but Trump and Trumpists expected, increased domestic prices for raw materials (metals) killing profits for manufacturers (or they'll have to raise prices - stoking inflation which will drive interest rates back to normal levels more quickly than optimists hoped).  Subsidies for US farmers being flayed for Trump's sins being put on the never-never of the $21 trillion pile of debt.
It looks like some of Trump's corporate tax cuts went to buy-backs, propping share prices - but there's not going to be tax cuts V2 while the US is running a huge and climbing budget deficit.  Worse, if GDP growth can't be sustained, then the deficit can't be "outgrown", so taxes would need to rise or expenditure would need to be cut, especially as rising interest rates will push the cost of interest on the US deficit to the #1 cost to the economy, above "defense".
It looks like Trump also wants a 21st century full-blown arms race, cold-war style.

gzt: That does not look good. No one needs a return to pointless military competition.

Arms manufacturers (and their investors) do.

Most economic activity is unnecessary for survival. Food, housing and transport are essentials. Everything else is a luxury.

Economic activity begets economic activity. Industries need other industries. Along with that comes jobs, disposable income, a market for things like education, culture, entertainment. 

Conventional arms are, regrettably, generally used as intended. But strategic nuclear weapons are designed specially not to be used. They are there for the threat alone. Deployment would have consequences too awful to contemplate.

So maybe an arms race is a good thing. Lots of non-essential economic activity feeding growth and prosperity. Let us all bow down to the Bomb!

Rikkitic:

 

So maybe an arms race is a good thing. Lots of non-essential economic activity feeding growth and prosperity. Let us all bow down to the Bomb!

 

The trouble with peace as an economic proposition is that you don't much in the way of equipment and supplies for it. 

Rikkitic:

 

Most economic activity is unnecessary for survival. Food, housing and transport are essentials. Everything else is a luxury.

 

Economic activity begets economic activity. Industries need other industries. Along with that comes jobs, disposable income, a market for things like education, culture, entertainment. 

 

Conventional arms are, regrettably, generally used as intended. But strategic nuclear weapons are designed specially not to be used. They are there for the threat alone. Deployment would have consequences too awful to contemplate.

 

So maybe an arms race is a good thing. Lots of non-essential economic activity feeding growth and prosperity. Let us all bow down to the Bomb!

 

 

 

 

 

Ummm education, health are luxuries?

MikeAqua:

 

The trouble with peace as an economic proposition is that you don't much in the way of equipment and supplies for it. 

 

With contraceptives, roman sandals, and ammunition for your peace-pipe, what else matters?

MikeB4:

 

Ummm education, health are luxuries?

 

You have to eat. You need shelter. Transport moves things to where they have to be. That is all you need for survival.