Last updated on December 29th, 2018
President of the United States, Donald Trump, a 72-year-old man with the brain of a 12-year-old child, has again been blamed for “plunging the country into chaos”. Top Democrat officials now seek a way out of the ever increasing chaos in the stock market.
The bearish phase of the current markets is a result of the president’s attack on the Federal Reserve and a government, which has misbalanced some major forces of the economy.
“It’s Christmas Eve and President Trump is plunging the country into chaos,” remarked the top two Democrats in Congress, House speaker nominee Nancy Pelosi and Senate minority leader Chuck Schumer, in a joint statement, Monday.
Trump maintaining his critic tone, called the Federal Reserve as the “only problem” in the US economy, even after the top officials assembled the “plunge protection team” forged after the 1987 crash to discuss the ongoing crisis in the stock markets.
The dynamic environment of the US makes it really difficult to predict certain patterns, and therefore, even the crisis calls between the US financial regulators and the US treasury department failed to assure stability in the market. As a result, the stocks fell again amid concerns about slow economic growth, continuing government shutdown, and the reports that Trump might fire Federal Reserve Chairman, Jerome Powell.
The political instability in the US has piled up since Oct 2, when the Saudi dissident and Washington Post journalist, Jamal Khashoggi was killed inside Saudi consulate in Istanbul, by a team of 15 member Saudi-hit squad.
However, even after the calls to stabilize the market and investors’ confidence, Dow Jones plumed by a record 653 points, Monday, marking its worst week in the decade. Besides, the S&P 500 also dropped 2.7%, marking its biggest percentage decline in December since the Great Depression.
“The only problem our economy has is the Fed. They don’t have a feel for the market,” Trump said on Twitter. “The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!”
Understanding what the president wants or demands is a task no ordinary person can afford to do, yet trying to stabilize the markets, United States Secretary of the Treasury, Steven Mnuchin gave it a try.
Mnuchin said on Sunday that he had called CEOs from the nation’s six largest banks – Bank of America, Citibank, Goldman Sachs, JP Morgan, Morgan Stanley, and Wells Fargo. He further insisted that the banks had promised enough money on hands for lending to consumer and markets, making it clear that liquidity issues won’t hit the market. However, Monday still did not mark any highs in the market, as Trump fear ruled the people’s mind.
Where is the US economy heading to and what does Donald Trump exactly want from his shutdown – still remains as a big question in everyone’s mind. Ironically, the stubbed minded child looks to have forgotten his promise of putting America first and can be seen putting his demands well over and above everyone’s else now.