Markets losses were a Democratic election tactic

Despite a national tax cut and record low unemployment with marginal wage gains, stocks had their worst year since 2008.

The Dow Jones industrial average lost 5.6 percent from the beginning of October to year’s end.The index hit 26,951.81, on Oct. 3 before crashing 3,624.35 to close out 2018 at 23327.46.

I’ll get to the other numbers down below, since you can read them in any stock story today. What I want to tell you is that there was no economic or monetary policies that precipitated such a fall one month prior to the midterm elections.

You see how I tied those two together. I believe part of the Democratic Party’s plan was to take away from President Trump his ability to ballyhoo the market gains under his administration. Remember in 2016 and 2017 the S&P 500 soared 9.5 percent and 19.4 percent.

Make the American people question his tariffs and other trade dealings with China and Europe. This makes sense from the left, since most have a globalist view as witnessed by their actions on the border wall. Open borders for immigration and unfair trade pacts for America are their bread and butter.

I have touched on this last week as it was going on. But the volatility in the markets in the last quarter of the year shows that this was a battle for votes. The hundreds of points moves in the market on almost a daily basis as some institutional investors tried to move the market higher based on fundamentals, only to be licking their wounds at the end of the session as big liberal left money managers booked gains and then sat on the sidelines.

Federal chief Jerome Powell’s actions seems to be working in cahoots with the left. Where was/is the inflation that the Fed appears to be fighting? It’s not there with crude falling and wages only moving up marginally.

Only if you take stock market gains as an inflationary bubble, do you have a modicum of intent. But those profits are only realized when you sell, not when they are paper profits.

The second mandate of the central bank is to achieve full employment, which we basically have now. But if you continue to raise rates — four times last year — you will curtail new hirings as the cost to bring new employees outweight the benefit of staffing up.

In the broader markets, the S&P 500 index fell more on a percentage basis to close the year off down 6.2 percent. The Nasdaq fell 3.9 percent as the high-flying tech giants fell from grace as hedge funds were forced to sell the good to pay for the bad bets made in 2018.

Have a wonderful New Year’s Day and a better 2019. Please like and retweet if this post is informative to you.


Trump’s White House has its own fast and furious program. Enjoy the show.

President Trump wasted little time after the midterms to preview what the next two years will bring to Washington.

In the most public forum — a White House press conference — the President ripped CNN’s correspondent Jim Acosta for brutish behavior towards his press staff.

An hour or so later, he fired Attorney General Jeff Sessions and appointed Matt Whitaker as Acting AG as announced on Twitter.

“We are pleased to announce that Matthew G. Whitaker, Chief of Staff to Attorney General Jeff Sessions at the Department of Justice, will become our new Acting Attorney General of the United States. He will serve our Country well,”

A few hours later Acosta’s White House press credentials were pulled for his press conference outbursts.

The Sessions firing created a Democratic firestorm on the future of Special Counsel Robert Mueller, since Whitaker is on record as saying there was a need to choke of Mueller’s funding since the wide-ranging probe is going nowhere.

It’s been a couple of years since we had “Fast and Furious” associated with the White House, but the next two years will be filled with spontaneous acts that will create screaming headlines and draconian reactions in the liberal press.

Take the Sessions firing. So many Democratic leaders and former Obama administration officials came out with “Constitutional crisis” and “crossing a red line” comments on the fate of the Mueller probe that it showed a talking points email blast must have went out to the rank and file to plaster all over Twitter and cable TV.

Let’s see what happens today to wipe out any and all reactions to yesterday’s news. I have a sense that the next two years will be exciting and spellbinding and will change the face of American politics forever.

Divided government doesn’t have to be divisive

Welcome to 2018 AM — after midterms.

The House of Representatives goes to Democratic control, but by a smaller majority than is usually accomplished by the party not in the White House in the midterm election.

The Republicans, however, gained further control of the Senate, which is where many of the ongoing investigations that began in the House of the intelligence agencies will move to in January.

Given that the blue wave was somewhat muted, The Dems should think about bringing in some fresh blood in its leadership roles. Moderates, who will be around in the next 10 years and ran on something more than being anti-Trump. If not, and the plan is to be obstructionist, then we could easily see a reversal in two years.

If the Dem leadership pursues impeachment hearings against President Trump and or Supreme Court Associate Justice Brett Kavanaugh, which will go nowhere since the Republicans control the Senate, then it will be a long, unfruitful two years of gridlock.

Something that the country will endure, but it will not improve the economy or anyone’s lives. The markets like divided government since very little regulation comes out of it, but people’s lives suffer, since little in the way of benefits come to light either.

So we move on and see what can be finished with this session of Congress and more importantly, what Special Counsel Robert Mueller has to say about the 2016 presidential election.

Election Day will be glorious

Election Day is upon us and just as if it was the 2016 presidential election, the pollsters are all in agreement the Democrats will win the House majority.

They believe they can never lose.

The political website ­FiveThirtyEight tabulated that Democrats have an 87.5 percent chance of winning back the House. Mind you this is the same website, run by Nate Silver,  that said Hilary Clinton had a 95%+ chance of winning the White House the day before the election.

As I wrote over the weekend, I see the Democrats winning their existing seats by a larger margin as voters in the darker blue states come out in bigger numbers to vote. However in the vast majority of the interior of the US, the Republicans will retain their seats and control of the House.

Putting aside the anti-Trump wing — or majority — of the Democratic Party, most people vote with their pocketbook. Wages and job growth are two important data points for any American to disregard.

If the Democrats had an economic plan for the future, then I have not heard it put forth by any candidate running in my area. That includes New York state Governor Andrew Cuomo.

Lots of additional spending to buy votes, but no concrete plans on how to pay for it. The old tax and spend playbook.

My election night coverage is usually spent watching the stock futures market, since there is huge money being “wagered” on the outcome and they have the best unbiased polling data in the country.

So my hope for this Election Day is the peaceful civic responsibility of all Americans to get out and vote and somewhere around 10 pm Tuesday night we should know what the next two years will be.

I believe it will be glorious.

Mocking wounded warrior is SNL’s idea of political satire

I don’t know what drives liberal mind to sit around the writers’ table at Saturday Night Live and came up with the sketch featuring Pete Davidson this weekend mocking a wounded warrior.

To mock Dan Crenshaw a Navy SEAL veteran, who lost an eye in combat and did two more tours after that, and is now running for Congress as a Republican in Texas seems desperate and depraved. Continue reading