I’m not going to go into another rant about the hysterical nonsense spewed forward today by El Pendejo Presidente, yesterday’s article nearly gave me a brain embolism. But there is a fundamental flaw in His Lowness’s logic regarding the economy that I really believe needs to be cleared up.
It is now clear that Moronicus Maximus has his heart set on a glorious Easter Sunday rebirth of the American economy, kicking off with a magnificent return to normalcy. As Lawrence O’Donnell put it this evening after Trump’s idiotic FUX News town hall, Americans have to decide whether they want to die from the corona-virus, or by mass suicide form the dent to their 401k’s. Glorious Bleater is dead set on restoring the stock market to it’s previous heights to prop up his faltering reelection hopes, but he’s forgetting one simple thing. And that is the fact that Wall Street doesn’t drive Main Street, Main Street drives Wall Street!
Here’s a news flash for The Pampers President., The recession is here! Deal with it! A 10% drop in share prices from a previous high indicates a “bear market,” the Dow has lost basically 33% in the last 40 days. In the Great Recession of 2009, we lost 2 million jobs in 3 months, we’re likely to lose close to 3 million in a single month. The federal Reserve Board can dump unlimited amounts of money into the markets to stabilize bonds and ensure liquidity, but they can’t create consumer confidence. Trump delusionaly continues to believe that restoring the stock market to an upward curve will fix everything. But it won’t.
Trump continues to believe that he can will an economic recovery by forcing people back to work. But that won’t work. In The Great Recession of 2009, unemployment capped at 10%. Economists are forecasting that unemployment during the corona-virus pandemic could cap out at 20% or higher. Those who become unemployed that are not financially destroyed will burn through a large portion of their “nest egg” to keep from doing so. And those that remain employed and collecting a check are fearing that they’re one numerical downturn from becoming unemployed. Basically, everybody is scared shitless.
There’s an old adage that every American alive has heard, You can lead a horse to water, but you can’t make him drink. But in he age of the corona-virus pandemic, there is a derivative of that old adage that Trump should be aware of, you can lead a consumer to Walmart, but you can’t make them shop.
Y’see, that’s the nub of it right there. By the time that this pandemic is over with, I roughly guesstimate that 65-70% of Americans will have felt either a personal financial drain from this epidemic, or suffered a severe lack of confidence in the stability of their jobs as a result. When this is finally all over, those that went to the razors edge will be frantically trying to rebuild their dissipated savings, And those lucky enough to have kept their jobs during the crisis will be terrified that the resulting recession could end up costing them their jobs. To put it bluntly, Ain’t gonna be nobody spending shit!
This is the real problem with Trump’s nearsighted myopia. Because it is the most visible sign of economic wealth, Trump insists on seeing the stock market as the know-all-and-end-all. But for the stock market to thrive, it depends on the well being and confidence of the American consumer. And no matter how it ends, or when it ends, there is going to be one helluva long pause before the American people start to feel like they’ve recovered enough to start to spend money again. Trump is trying to bluff a pair of 3’s against an inside straight. Good luck with that one, buddy.
To know the future, look to the past.before the insanity of the 2020 election, relive the insanity of the 2016 GOP primary campaign, and the general election, to see how we got to where we are. Copies of President Evil, and the sequel, President Evil II, A Clodwork Orange are available as e-books on Amazon, at the links above. Catch up before the upcoming release of the third book in the trilogy, President Evil III: All The Presidents Fen