I honestly think it was a mistake for Trump to not pop the stock market bubble when he could have. It would have been painful, and I understand why he didn't, but it puts our financial system in one hell of a mess - thanks to the Fed fucking everything up.
The Fed has everything to do with the stock market. If you are effectively printing up money and loaning it out at 1%, and stocks are going up an average of say 6%, it's just like the housing bubble. One way or another, money is going to flood in there till leverage is maxed out.
This is another thing I wish Trump did differently. Low interest rates don't create economic growth, they create bubbles. You have to let the market set the interest rate, not the Fed.
I honestly think it was a mistake for Trump to not pop the stock market bubble when he could have. It would have been painful, and I understand why he didn't, but it puts our financial system in one hell of a mess - thanks to the Fed fucking everything up.
The Fed has everything to do with the stock market. If you are effectively printing up money and loaning it out at 1%, and stocks are going up an average of say 6%, it's just like the housing bubble. One way or another, money is going to flood in there till leverage is maxed out.
This is another thing I wish Trump did differently. Low interest rates don't create economic growth, they create bubbles. You have to let the market set the interest rate, not the Fed.