Tag: stock market

Beautiful Bloviation

By Stephen Macaulay

Biden was boisterous, bold, bullish, and even brash, but. . .

 Pop quiz:

•Who made the following statements?

•When were they made?

“Jobs are booming, incomes are soaring, poverty is plummeting, crime is falling, confidence is surging.”

“U.S. stock markets have soared 70 percent, adding more than $12 trillion to our nation’s wealth.”  

“[W]e are restoring our nation’s manufacturing might. . . . America has now gained 12,000 new factories under my administration, with thousands upon thousands of plants and factories being planned or being built.  Companies are not leaving; they are coming back to the USA.”


Answers:

•President Donald J. Trump

•February 4, 2020; State of the Union Address

All of that sounds pretty good — and somewhat familiar — doesn’t it?

And, of course, Trump, the incumbent, lost the presidency to Joe Biden.

The State of the Union address is prescribed in Article 2, Section 3, of the Constitution:

“He shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient. . . .”

Odds are if you work for a large organization of any type you’ve been required to attend an all-hands address presented by the leader of the corporation or the charity.

And odds are the nicest thing you did when you got the advisory about attendance was to roll your eyes.

If there was any way to miss the bluster and the blah-blah-blah you did it. (“Erm. . .I have to get a root canal. . . .”)

Yet somehow we (yes, I guess this means me, too) expect that the American public is going to watch the address or, at the very least, been keen on catching up on the content delivered by the president.

Forget it. It didn’t happen.

Yes, those who are deeply involved in watching MSNBC or Fox News undoubtedly were jonesing for the speech.

But Biden partisans might only reconsider their support if, say, he had a 20-minute Mitch McConnell moment.

And Trump supporters wouldn’t change their mind about Biden even were he to lead the assembled in the House of Representatives’ chamber in a “Hang Mike Pence!” chant.

What really matters is what is said — by both Biden and Trump — between now and November 5.

The State of the Union is really not much more than obligatory smoke and mirrors.

I mean, Trump closed his last (and I hope it really is his last) State of the Union sounding, well, Bidenesque:

“America is the place where anything can happen.  America is the place where anyone can rise.  And here, on this land, on this soil, on this continent, the most incredible dreams come true.

“This nation is our canvas, and this country is our masterpiece.  We look at tomorrow and see unlimited frontiers just waiting to be explored.  Our brightest discoveries are not yet known.  Our most thrilling stories are not yet told.  Our grandest journeys are not yet made.  The American Age, the American Epic, the American adventure has only just begun.

“Our spirit is still young, the sun is still rising, God’s grace is still shining, and, my fellow Americans, the best is yet to come.”

Sounds like a guy with the sort of vision that we’d like to elect.

Right. . . ?

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While Rome Burns

By Stephen Macaulay

On February 7, 2020, Donald Trump told Bob Woodward of COVID-19, “It goes through the air. That’s always tougher than the touch. You don’t have to touch things. Right? But the air, you just breathe the air and that’s how it’s passed. And so that’s a very tricky one. That’s a very delicate one. It’s also more deadly than even your strenuous flus.”

On March 19 Trump told Woodward, “I wanted to always play it down. I still like playing it down, because I don’t want to create a panic.”

According to reporting by The New York Times, on Feb. 24, hours before Trump tweeted, that COVID-19 was “very much under control,” and that “Stock market starting to look very good to me!”, “senior members of the president’s economic team, privately addressing board members of the conservative Hoover Institution, were less confident.” It seems that Tomas J. Philipson, a senior White House economic advisor, told the group that he couldn’t estimate the economic effects of the COVID.

The Times reporters write, “To some in the group, the implication was that an outbreak could prove worse than Mr. Philipson and other Trump administration advisers were signaling in public at the time.” [Philipson in late June quit his new post as acting chief of the White House Council of Economic Advisors to return to the University of Chicago, two days after Kevin Hassett announced his departure as the council’s chief.]

Apparently this was a three-day affair of getting inside insights into COVID from White House officials.

A hedge fund consultant attended the event of the Hoover board and created a document about it. The Times reporters write, “’What struck me,’ the consultant wrote, was that nearly every official he heard from raised the virus ‘as a point of concern, totally unprovoked.’”

Here’s the thing: the information that the rest of us got from Trump and his minions was “Nothing to see here, move along.”

The information that was given to the Hoover people, which then went to a hedge fund, Appaloosa Management, was far less sanguine.

According to the Times, “legal experts say. . .it is not apparent that any of the communications about the Hoover briefings violated securities laws.”

So let’s see: Trump and his people tell you and me that there is no problem; people in the business of using information to buy and sell—and they sold in this case—were given insights that the rest of us would—what?—panic if we knew?

It would be the old case of the rich getting richer if it were also not the case that the sick were getting sicker and the dead, well, dead.

It is somewhat incomprehensible how people who are in the middle class and below think that Trump has any concern for their well-being.

Wall Street is doing great. Main Street has a whole lot of “For Rent” signs—and many more to come.

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