Donald Trump continues to bloviate about all the miraculous things he would do for the American economy - giving almost no specifics, of course - and those brainwashed by Fox News, Breitbart and other "news outlets" that create a fantasy world detached from objective reality, buy the lies hook, line and sinker. Meanwhile, with Trump seemingly doing better in the polls, Wall Street and the international financial markets are going back into panic mode. Equally frightening is the significant market drop anticipated should Trump win on Tuesday. A piece in Salon looks at what those who really know about the economy and economic trends think of Trump. Here are highlights:
Investors are bracing for what could be the most volatile post-election trading day ever.According to a Credit Suisse analysis of index options (financial derivatives that allow investors to bet on the future value of a market index), the benchmark S&P 500 index of America’s biggest companies could rise or fall by 3.3 percent on Wednesday in reaction to the election results. Such an election-related swing in the market would be unprecedented, well above the average 1.1 percent move that follows a normal presidential race. Other estimates are less sanguine: Citi analysts warn of an immediate 5 percent drop should Trump win the election. Others suggest the decline could be even greater.
As Election Day approaches, anxieties are running high, leading to one of the longest selloffs of stocks in the S&P 500 index since the financial crisis eight years ago. Friday’s upbeat monthly U.S. jobs report, which showed robust gains in both hiring and wage growth, helped to lift U.S. markets during intra-day trading, but the S&P 500 ended Friday down a slight 0.17 percent, its ninth consecutive decline and the longest losing streak since 1980.
The U.S. election jitters aren’t limited to the U.S.: Asian and European stock markets fell Friday, too, while the benchmark Euro Stoxx 600 shed 3.5 percent this week, touching its lowest level since July.
Safe-haven bets — low-yield, highly stable investments — have risen, too. U.S. Treasury funds gained $2.3 billion in five days, the largest influx of cash since the first week of July following the Brexit vote, as investors fled volatile markets to the safety of low-yield U.S. government debt. On Friday, the price of a troy ounce of gold was up about $30 from Monday (gold prices tend to rise when investors are on edge).
By some measures, Trump’s bold propositions — such as starting trade wars with China and Mexico and crippling the U.S. budget with massive tax breaks for the rich — would be a disaster for the U.S. and global economies.
Let's be honest. Those supporting Trump are really doing so because they want race relations and many social issues to revert back to the 1950's status, a time when white privilege was unchallenged and women, gays and many others were second class citizens or worse.