Yesterday’s 800 point plunge in the Dow doesn’t pass the sell test.
Why would it drop like that? What disaster looms? Didn’t make sense. Pundits pointed to an inverted rate curve. Sounds like a deliberate attempt to confuse average Americans with impressive sounding language.
Whenever words are manipulated, you know you are being manipulated.
Instead, maybe it’s the Chinese playing with us or the Chinese friendly investors who are willing to take a short term loss to make a point.
Sound like a conspiracy theory?
Financial analyst Jack Hellner points out that “the yield curve inversion yesterday was a very weak excuse to drive down the market, yet the media pretended and hammered home the theme that it is a sign of impending doom.”
Why is the media lying to the public about the last time interest rates inverted?
The media has been trying to scare the public about the dangers to the economy since before Trump was elected. And the gloomy forecasts are going to get worse the closer we get to the 2020 election because facts haven’t mattered for a long time, only power for Democrats. The media and other Democrats are essentially trying to talk the country into a recession. They would rather have people dependent on government and they need their votes. Facts are irrelevant.
The media along with other Democrats say that Trump is running on fear but every day they try to scare the public, especially the young, with fears of a recession or we are going to die in a short time because of climate change.
Today the doom predictions are very loud because of the stock market declining. We are being told that interest rates have inverted for the first time since 2007 and that signals a recession. Why hasn’t the media done a few minutes of research since the yield curve inverted so recently and the doom predictions were the same then as today?
Why has the media chosen to ignore that interest rates inverted on March 22nd of this year and the stock market has hit all-time highs since then, and the U.S economy and especially the job market have done very well since then.
Most journalists are not really journalists investigating and reporting. They are campaigning for Democrats with talking points. The media is more dangerous to our freedom and prosperity every day.
When will they tell the truth?
The truth is that the yield curve is inverted for one reason only. The fed funds rate is over 2% for overnight money, so why the heck would institutional investors buy three month money at below the ten year bond yield of 1.59% when they can get over 2% for overnight money? It is time that Fed chairman Jerome Powell aligned its overnight rate with the market. Then the yield curve will not be inverted.
The Federal Reserve forgot that their job was to protect against inflation — which is low. It is not to slow down the economy because statistically it looks great. As long as inflation is low, they should let the market soar. Efficiency, productivity, low taxes and fewer regulations explain why our economy is doing much better than most of the World. Thank goodness we have a president who is much smarter and has more common sense than the so-called experts. And he is certainly 100% smarter than the journalists and other Democrats that trash him on a daily basis.