Category Archives: Stimulus

Two Trillion Dollar Stimulus Brings Back Bull, For Now

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The Senate passed a two trillion dollar stimulus bill Wednesday night. And the Dow lurched forward 6.4% on Thursday. And that followed an 11% bump from the day before. But the 401k party was over by Friday and it was still down over 20% for the year.

Senate Stock Market Tycoons

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White House and Senate agreed to a $2 trillion stimulus deal for the economy. And the economy likes it. The Dow shot up 11% for its best day since 1933.

Speaking of stocks and Senators, some senators dumped stocks just before Corona virus market meltdown.

Senate Stock Market Tycoons

Here’s Professor Jonathan Turley writing in The Hill:

Senators Richard Burr, Kelly Loeffler, James Inhofe, and Dianne Feinstein together are responsible for as much as $11 million in recent stock sales. It turns out that many lawmakers become market investment geniuses after they enter Congress. A University of Memphis study found that 75 percent of randomly selected members had made “stock transactions that directly coincided with legislative activity.” A Georgia State University study noted that, from 1993 to 1998, senators beat the stock market by 12 points with their portfolios and outperformed “corporate insiders” by 8 points.

Feds Plan to Make Everyone Flush

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The feds are trying to stimulate the economy out of the toilet. The plan so far is to make everyone flush with free money. Thousand dollar plus checks could be in the mail soon.

Fed Grinch Steals Trump Christmas

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You’re a Mean One, Chairman Powell

President Trump overheated his Twitter account trying to pressure the fed chairman. But it didn’t work. Jerome Powell was more than ready to to stand up to Trump by playing the Grinch and raising rates. Not only that he said he’d do the same thing two more times next year.

Fed Grinch

The Dow swooned and the president sputtered. But Bloomberg says the Fed did the right thing. Vox, however, not so much. 

Meanwhile the stock market crater continues.

Trump’s Animal Spirits

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James Fallows, in the October Atlantic, says Jane Goodall told him that Donald Trump reminds her of a chimp:

In many ways the performances of Donald Trump remind me of male chimpanzees and their dominance rituals,” Jane Goodall, the anthropologist, told me shortly before Trump won the GOP nomination. “In order to impress rivals, males seeking to rise in the dominance hierarchy perform spectacular displays: stamping, slapping the ground, dragging branches, throwing rocks. The more vigorous and imaginative the display, the faster the individual is likely to rise in the hierarchy, and the longer he is likely to maintain that position.”

Animal Spirits

The elite made a monkey of Trump before the election. But since then he’s released the stock market’s animal spirits. Oil and the dollar dig The Donald too.

Many 401-k investors are bullish because stocks have hit record highs. But Clinton Foundation investors – not so much.

Well, at least one Clinton supporter has done ok. Warren Buffett’s Berkshire Hathaway is up 8% since the election.