Why is Trump doing this?

[BCCHoosier]

View embedded media

A recession to cut rates. Genius. Can't wait to buy American made televisions again. Maybe the old RCA plant in Bloomington will reopen.

 

[Bill4411]

trump wants to give Jan 6 protesters a white nationalist group reparations, what a racist

I thought at first this can't be real, but it probably is just a distraction to deflect from the horrible loses in the stock market Trump has personally created this week. He probably doesn't care because he probably had Don, Jr. or one of his other sons go short in the market for him.

 

[GooglyMooglyWooglyBoogly]

Consumer debt is now $18+ Trillion and climbing. A large portion of that went straight to improving the lives of overseas workers and owners who make that crap. That’s crazy and it doesn’t include the consumer purchases unrelated to debt. Prices in and of them selves are only half the analysis, the other half is wages and income which our spending supports for the overseas interests more than it should.

Delinquencies on cars and credit cards are rising. This is consumerism run amok.

I’m absolutely an advocate for people living within their means. Blaming overseas producers for the personal fiscal irresponsibility of American consumers rubs me the wrong way however. My back of the napkin math says on shoring industry means domestic industrial wages rise as well as input costs. The salary bump can be used to now purchase more expensive goods.

People wanted to look for all manner of convoluted causes and scapegoats over the mortgage crisis. While there were many contributing factors, the primary one was fiscally irresponsible Americans signing mortgages they didn’t understand and couldn’t afford.

This debate over the working class being sold down the river strikes me as a similar situation.

 

[UncleMark]

People wanted to look for all manner of convoluted causes and scapegoats over the mortgage crisis. While there were many contributing factors, the primary one was fiscally irresponsible Americans signing mortgages they didn’t understand and couldn’t afford.

Agreed. But don't discount those who sold those mortgages, threw them all into a bucket, and sold them as "investments." And yes, Clinton had a hand in that, as well as GWB.

 

[Cortez88]

Agreed. But don't discount those who sold those mortgages, threw them all into a bucket, and sold them as "investments." And yes, Clinton had a hand in that, as well as GWB.

So….this is still happening. MBSs are still out there. Just something to keep in the back of fridge if shit gets more sideways.

 

[Ohio Guy]

This seems like a pretty good landing spot for this.

Have a great weekend everyone.

 

[IUCrazy2]

I am not even going to go out and look at my retirement accounts. What a cluster**** this has all been.

 

[Bowlmania]

This seems like a pretty good landing spot for this.

Have a great weekend everyone.

You too, Guy.

 

[sweetsilence]

Eh, I'm only 40. Can't change anything so have to roll with it. Stocks are on sale.

 

[GooglyMooglyWooglyBoogly]

So….this is still happening. MBSs are still out there. Just something to keep in the back of fridge if shit gets more sideways.

I don’t see anything inherently wrong with MBSs. If you are going to take on debt, creditors can sell your debt. That’s part of the bargain.

Poor due diligence by Wall Street in buying that debt is probably third on my list after irresponsible borrowers and Clinton/ CRA.

 

[Baller23Boogie]

I never said Trump said balancing the budget. He probably did as he talks sh!t all the time. But realistically, nobody is talking about balancing the budget from the Trump team. It's about cutting spending, deficit reduction.

Less then a month ago on fox news

 

[ribbont]

View embedded media

Less then a month ago on fox news

I stand corrected. But again, I never said anything about balancing the budget. You did. I simply stated one of items on the Trump platform was to reduce govt spending.

 

[outside shooter]

I stand corrected. But again, I never said anything about balancing the budget. You did. I simply stated one of items on the Trump platform was to reduce govt spending.

Not exactly, he seems to want to divert government spending from one form to another. (tax breaks, free cheese, etc.) He has no desire to reduce annual deficits or to reduce national debt. The hefty debt ceiling increase is evidence of that.

 

[Baller23Boogie]

I stand corrected. But again, I never said anything about balancing the budget. You did. I simply stated one of items on the Trump platform was to reduce govt spending.

Never meant to imply you did.

Wouldn't raising debt ceiling be counter productive to reduce government spending? I'm not the brightest bulb in the pack, but that doesn't make sense to me.

 

[Aloha Hoosier]

It's not. But I have not seen a proposal to increase the deficit by 5T. I have recently seen the Senate proposal to increase the debt ceiling by 5T. Is that what you mean?

$5 trillion is the CBO estimated cost over 10 years for extending the expiring tax cuts of the first Trump administration.

 

[Aloha Hoosier]

The unfortunate part for the rest of us is that people like Jim Cramer should haven seen this coming a mile away well before the election.

The Democrats gave Americans a crappy alternative. Biden should have announced he wasn’t running to set up a competitive primary. Little to no chance Harris could have won that.

 

[Aloha Hoosier]

And this is exactly why us uber liberals never believed he knew what the fvck he was doing. The man is completely incompetent and it’s going to take a deep recession or depression for you idiots to ever see reality.

Of course, as the market declines the billionaires are buying up all the cheap stock, so when the liberals return and build our economy back, just like they did when W tanked it 20 years ago, the billionaires will be that much wealthier. As one economist put it, this the opposite of Robin Hood, this is like stealing from the poor and giving it to the rich. After all, this is what conmen do.

Exactly how did GWB tank the economy? I’ll help you out - he didn’t.

 

[Ohio Guy]

The Democrats gave Americans a crappy alternative. Biden should have announced he wasn’t running to set up a competitive primary. Little to no chance Harris could have won that.

I think this is probably true. That said people didn’t believe either candidate. Harris warned anyone who would listen about the exact situation we’re in and more reasonable Trump voters didn’t think he’d pull the trigger on all this.

Harris also talked about walking back - or at least not continuing - some of the more progressive stuff that launched during the Biden administration. A lot of people doubled down on the wrong candidate not lying.

 

[Aloha Hoosier]

I thought at first this can't be real, but it probably is just a distraction to deflect from the horrible loses in the stock market Trump has personally created this week. He probably doesn't care because he probably had Don, Jr. or one of his other sons go short in the market for him.

Wait. That’s real? No way.

 

[snarlcakes]

$5 trillion is the CBO estimated cost over 10 years for extending the expiring tax cuts of the first Trump administration.

The CBO estimated it would cost 1.9 trillion over 10 years when they first enacted them during his 1st term. By the way tax revenues went up as percentage of GDP after they passed them. lol...now it's 5 trillion? It's incredible how terrible these organizations are at making predictions and people still take them seriously. If congress let them expire they'd be just as damaging as Trump's dumb tariffs. We're not raising 500 billion in extra revenue by letting them expire.

 

[ribbont]

Not exactly, he seems to want to divert government spending from one form to another. (tax breaks, free cheese, etc.) He has no desire to reduce annual deficits or to reduce national debt. The hefty debt ceiling increase is evidence of that.

Then why have DOGE? Tax breaks is not govt spending.

 

[ribbont]

Never meant to imply you did.

Wouldn't raising debt ceiling be counter productive to reduce government spending? I'm not the brightest bulb in the pack, but that doesn't make sense to me.

Not necessarily. We need to raise the debt limit to issue bonds to service debt. That doesn't mean Trump cannot work towards reducing the current annual budget deficit.

 

[outside shooter]

Tax breaks is not govt spending.

True, but cutting what goes out and also cutting what comes in, but even more gets us nowhere. No taxes on tips, alone, is a ton less revenue. And the big beautiful free cheese checks are government spending

 

[ribbont]

True, but cutting what goes out and also cutting what comes in, but even more gets us nowhere. No taxes on tips, alone, is a ton less revenue. And the big beautiful free cheese checks are government spending

Since 1975, revenues have grown at an annual compound rare of 5.8%. Spending at 6.45%. We have a spending problem, not a revenue problem.

 

[outside shooter]

Since 1975, revenues have grown at an annual compound rare of 5.8%. Spending at 6.45%. We have a spending problem, not a revenue problem.

I see the point, but if you change it to a rate of spending going down to (say) 5% but keep revenues flat, it does not help the balance sheet at all.

 

[ribbont]

I see the point, but if you change it to a rate of spending going down to (say) 5% but keep revenues flat, it does not help the balance sheet at all.

Please, show me your math.

 

[outside shooter]

Earn $100
Spend $150

Then

Earn $40
Spend $100

You cut your spend and still got in a deeper hole.

 

[ribbont]

Earn $100
Spend $150

Then

Earn $40
Spend $100

You cut your spend and still got in a deeper hole.

This is so stupid, I don't know where to begin.

You said keep revenues flat. Now you decrease it by 60%. You are coming across as clueless. Stick with science. Finance is not your thing.