02-05-2018, 08:51 PM
(02-05-2018, 08:49 PM)BmorePat87 Wrote: https://www.politico.com/story/2018/02/05/trump-stock-market-down-324880
The Dow ended the day down 1,175 points but at one point was down nearly 1,600. This is the largest drop in history, though not the largest drop percentage wise (Black Monday saw the Dow down 23%). The 4.6% drop is still not quite the 7% drop that was experienced in 2008.
The Fed is expected to keep raising interest rates to combat inflation as the government plans to borrow more in 2018 with tax revenue down thanks to the tax cuts. Higher interest rates will also lessen some of the benefits of proposed wage increases and bonuses in the wake of the cuts.
The other unknown is whether Congress can agree on a debt ceiling plan before the deadline.
Hopefully things will settle down, but I'm not sure if anyone has a plan to ensure that.
I don't have hope on things settling down. We're due for another recession, and we've made it so we don't have the fiscal tools in our toolbox that we normally use to right the ship. I don't think this is going to turn out well.
"A great democracy has got to be progressive, or it will soon cease to be either great or a democracy..." - TR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
