Markets Crash Even as Biden Crows About His Economy – Opinion

Stock market was on another roller coaster ride, with the Dow sinking 2 percent just Monday. With the Dow falling almost 12 percentage points, it is at its lowest point for the year. The Nasdaq Composite dropped 4.3 percent. Thanks, Bidenflation.

According to Wall Street Journal, tech and energy stocks did the worst. The causes are explained by them:

A flurry investor concerns has shaken the markets. The pace of inflation is at its highest point in many decades. The Federal Reserve has been forced to launch what economists believe will be the most aggressive monetary tightening campaign since 1980s. Investors are questioning whether the Fed will be able to pull off its planned course of interest-rate increases and cuts to its balance sheet without tipping the economy into recession.

Sky News was a bit more succinct, writing that “a toxic cocktail of worries” has investors spooked.

There are also growing worries that the inflation problem – made worse by Russia’s invasion of Ukraine – will result in recession for major economies as the Bank of England warned, last Thursday, was a growing risk for the UK.

Cryptocurrency Bitcoin lost nearly 60 percent since November’s record high, and dropped close to 15 percent Monday.

Many say, “Who cares? I’m not an investor and I don’t own stocks.” I’ve heard the phrase, “It only matters to billionaires,” but that’s not true. CNBC reports that even the small man is affected by the stock market.

They wrote:

Due to a number of factors, the fates of Wall Street and Main Street have never been so intertwined.The share of household wealth that comes from directly or indirectly held stocks hit a record 41.9%, more than double where it was 30 years ago….

With household ownership of stocks scaling new heights and the destiny of companies — particularly in the innovative tech sector — tied to their share prices, the fates of Wall Street and Main Street have never been so intertwined.

More important is however the argument that markets may be an indicator of economic strength and can predict gross domestic products (GDP). Investopedia explains it all:

The stock market is often a sentiment indicator and can impact gross domestic product (GDP). GDPIt measures the economic output. The stock market’s movements affect the economic sentiment. As sentiment changes, so do people’s spending, which ultimately drives GDP growth; however, the stock market can have both negative and positive effects on GDP.

We could go on with other numbers and economic arguments, but the main thrust is that if the markets crash, it’s bad for billionaires—but it’s also bad We are here for you. If you lived through 2008, you know what I’m talking about.

Biden has, of course, been gaslighting us on how great the economy is under his watch, but the numbers tell otherwise, as we’ve reported: The GDP shrank 1.4 percent in the 1st quarter; inflation is at 8.5 percent, the highest since 1981. So on.

Biden might think his economy is all that, but investors clearly don’t. That’s not good for any of us.

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