Trump acknowledges recession, Dow drops over 1,100 pts

[Rideback]

Robert Reich:
"As Trump guts the Dept of Education, remember that his plan to cut corporate tax rates to 15% would give the largest corporations a tax cut larger than the entire departments K-12 budget"

[mister_coffee]

Also keep in mind that the periods when the US Government ran consistent budget surpluses were not at all the most economically stable periods in our history. Quite the opposite, in fact.

[Rideback]

Yes, Ken, which is all the more reason to add revenues from the oligarchs. Until they pay their fair share the only way to cut the deficit is to break into services and entitlements for the middle class. Glad you finally got it. Until the uber rich start paying into Social Security past the ceiling under law the program will always be close to going over the cliff.

Look at what happened in Trump 1.0 when the oligarchs and corps got huge tax breaks. Immediately the revenues going into Treasury fell off a cliff and despite promises from Trump that we'd see a strong economy led by the corps and oligarchs, instead the corps bought back their stock, made record profits and the oligarchs doubled and tripled their wealth.

https://www.npr.org/2025/03/06/nx-s1-53 ... t-congress

[dorankj]

Spending more on interest on our debt than on national defense is BENEFICIAL?! You guys have fully jumped the shark. No wonder you lost.

[mister_coffee]

I'd also point out that the rules are different and what it actually means is very different if you owe money in a currency you are authorized to issue. By definition the US government cannot go bankrupt because they can always issue more dollars to pay their debts. The only way a default is even possible is through incompetence or malice. Or malicious incompetence.

https://en.wikipedia.org/wiki/Modern_monetary_theory

Effectively treasuries are used in a lot of ways that are indistinguishable from cash money. They can be collateral for loans or other financial transactions. They can be reserves for banks or other institutions. So I'd argue that you increase the money supply by issuing debt anyhow. The fact that there is a large amount of debt circulating makes a very wide and deep market for it so it can be efficiently priced. And we have all reaped enormous economic benefits from this favorable situation. And we are about to screw it all up.

Also a very large portion of the US government debt is held by the US government. About 26 percent recently. Large portions are held by the Federal Reserve.

[pasayten]

During trump's first term... The “King of Debt” promised to reduce the national debt — then his tax cuts made it surge. Add in the pandemic, and he oversaw the third-biggest deficit increase of any president.

[just-jim]

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36 trillion in debt! It’s already been broken.

…..and OVER 25% of that amount - nearly 9 T$$ - happened in just 4 years of trump #1.
Thats 4 years out of 250 years of our History!

If you are going to try and use figures, MAGA b*tch….you should really attempt to understand them, first.
It usually helps your argument….
.

[Rideback]

And look at how much debt Trump #1 accrued. And look at how much less we would have accrued if the oligarchs paid their fair share, but oh no, Trump & Reps keep on giving the oligarchs and their corps a pass. It's so damn simple, make the rich pay taxes, stop making everyone else shoulder the burden plus cut their representation by cutting services.

92% of the cuts that DOGE has reported are verifiably NOT improving the efficiency of the govt, instead they are cutting services to the taxpayers who have paid into the system for the services to be provided. Where's the representation Ken?

[dorankj]

36 trillion in debt! It’s already been broken.

[PAL]

They break it so they will look like angels when they fix it. We'll all be relieved and in awe.

[Rideback]

btw
63% of people in nursing homes are on Medicaid. And Republicans want to strip them of their care to pay for tax cuts for billionaires.

[dorankj]

Believe yourself Goebbels!

[just-jim]

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[just-jim]

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[just-jim]

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Survey of people’s expectations - by NY FED - out today:
https://www.newyorkfed.org/microeconomics/sce#/

February Survey: Short-Term Inflation Expectations Tick Up, Medium- and Longer-Term Expectations Remain Unchanged

- Median inflation expectations increased by 0.1 percentage point (ppt) to 3.1 percent at the one-year horizon and were unchanged at 3.0 percent at the three-year- and five-year-ahead horizons.

- Consumers’ year-ahead expectations about their households’ financial situations deteriorated considerably in February. The share of households expecting a worse financial situation one year from now rose to 27.4 percent, its highest level since November 2023.

- Mean unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—jumped up by 5.4 ppt to 39.4 percent in February, its highest reading since September 2023.

- The average perceived probability of missing a minimum debt payment over the next three months increased by 1.3 ppt to 14.6 percent, its highest level since April 2020.
.

[PAL]

ah, sorry. We don't own stock.
X was cyber attacked too. Elon is blaming Ukraine. Most probaby not.

[mister_coffee]

Oh, and this:

Apparently nobody in this administration knows how to talk about economic news and just knows how to make upset people more upset.

Again when this isn't just about the drama and there is actual economic news (likely very bad news) things are going to be worse. Possibly far worse.

[mister_coffee]

The broligarchs are not having a good run right now:

So Elon Musk has personally lost $145 billion dollars since January 17th. And Tesla shareholders are rightly pissed off, as Tesla stock is down 47.6% since inauguration day.

Normally when a company has a bad run on the stock price they expect the President and CEO to be on the job. But Tesla's president and CEO is busy elsewhere, apparently rage-posting on X, dismantling critical government services, and firing government employees and then realizing that is a bad idea and re-hiring them. And if you have a rocket ship company, and your rockets are blowing up, it is reasonable to expect the President and CEO to be on the job as well. But Musk again is apparently too busy. Apparently he is too busy to contact his baby mamas who are trying to get hold of him because his kids are sick too.

So I think Musk is going into the wood chipper unless he quickly figures something out. And Tesla and probably SpaceX along with him. I think he will soon get the boot at both Tesla and SpaceX. And since a lot of his financial dealings are done by borrowing against his many Tesla shares, now that those shares are less valuable banks will probably start calling those loans. So he'll have to sell a bunch of stock to pay those loans, which will push the share price further down.

Spoke to someone over the weekend who walked me through where Tesla is, share-price wise. He made generous assumptions (mainly that the President and CEO do their jobs, are non-toxic to the brand, and that Tesla sells decent cars at a competitive price) and came to the conclusion that Tesla share prices will probably drop more than 80 percent in the next year. That's not counting the near fifty percent drop we've seen in the last six weeks.

I think anyone with great wealth who has calculated that he will be better off with Trump in charge made a very stupid choice.

Keep in mind the stock turmoil right now is all about the drama. When actual economic news comes out: jobs numbers, GDP growth, &c those numbers are unlikely to be good and stock prices are really going to go over a cliff.

Full disclosure: I, like over fifty percent of Americans, hold stocks. I'd really rather this not happen.

[PAL]

So let's see. How does this work? The Olis are going to by stocks when it hits rock bottom then won't it cause stocks to go up? Is this called buying or selling short?
I don't know much about the market. It's nothing to #47 if it is a recession or for the wealthy. Maybe they should just go ahead and make it a Depression. Also, lets remember that the plan is to cause instability with the masses. On purpose.
David, you probably know how this Ponzi scheme works. Do enlightened me.

This from the Methownet BB: " Any President who lets the DOW fall 900 points in two days should be impeached" Donald John Trump.. FYI DOW down 900 points today ..

[Rideback]

https://www.marketwatch.com/livecoverag ... ars-linger