Economy Stock Market Hits 2018 Low As Fed Hikes Rate

[DEN]

https://www.cnbc.com/2018/12/19/sto...dge-higher-federal-reserve-rate-decision.html

• Dow, S&P 500 and Nasdaq all hit new lows for 2018 after the Fed hiked interest rates.
• The Dow gave up a 381 point gain and closed 351 points lower.
• The major indexes rolled over after Fed Chair Powell said the central bank would continue to shrink its balance sheet, tightening financial conditions.

So signs are pointing to a looming recession. Some are blaming this on Trump's foolhardy Trade Wars and erratic (to put it mildly) behaviour.
I'll freely admit I'm out of my depth here but want to hear from any economists, savvy posters in here about what they think this portends, if anything.

Discuss

 

[GearSolidMetal]

I can hear the cheering liberals from here.

And the loud speculation of a recession, or even a depression.

 

[Voodoo_Child906]

That was 9 years of the craziest gains I've ever had, it had to end sometime though.

 

[Andy Capp]

https://www.cnbc.com/2018/12/19/sto...dge-higher-federal-reserve-rate-decision.html

• Dow, S&P 500 and Nasdaq all hit new lows for 2018 after the Fed hiked interest rates.
• The Dow gave up a 381 point gain and closed 351 points lower.
• The major indexes rolled over after Fed Chair Powell said the central bank would continue to shrink its balance sheet, tightening financial conditions.

So signs are pointing to a looming recession. Some are blaming this on Trump's foolhardy Trade Wars and erratic (to put it mildly) behaviour.
I'll freely admit I'm out of my depth here but want to hear from any economists, savvy posters in here about what they think this portends, if anything.

Discuss

MAGA innit?

 

[DEN]

I can hear the cheering liberals from here.

And the loud speculation of a recession, or even a depression.

Well people did say Trump's erratic behavior would lead to this. Took awhile but it seems the bill is coming due.

 

[Andy Capp]

To the extent Trump had anything to do with when the economy was going well, he will have just as much to do with when it goes bad. Actually, it is a demonstrable fact that he will have far far more to do with the economy going bad, and how bad it's going to go.

 

[DEN]

That was 9 years of the craziest gains I've ever had, it had to end sometime though.

What do you think this portends for the future? Are the talks of recession premature?

 

[Trotsky]

That was 9 years of the craziest gains I've ever had

Same

 

[DEN]

Same

I thought you was communist?

 

[Voodoo_Child906]

What do you think this portends for the future? Are the talks of recession premature?

Really tough to say, a fall in GDP in 2 or 3 successive quarters is the definition I believe. Right now it looks like a slowdown and not a negative GDP for the next few quarters. That could drastically change though if these stupid trade wars keep happening. WTI needs to bump up as well $60-$70 USD is sustainable.

 

[GearSolidMetal]

Well people did say Trump's erratic behavior would lead to this. Took awhile but it seems the bill is coming due.

'People' say alot, and blind squirrels finds nuts occasionally.

The fed raises interest rates, causing a stock crash, and Trump gets the blame for the stock crash.

Brilliantly accurate reporting.

 

[Trotsky]

I thought you was communist?

I consider myself that, yes, although I'm more appreciative of the utility of the market than most.

But, no, I don't deal much in stocks. I just like that gif.

 

[Ophydian]

'People' say alot, and blind squirrels finds nuts occasionally.

The fed raises interest rates, causing a stock crash, and Trump gets the blame for the stock crash.

Brilliantly accurate reporting.

Why do you think the FED is raising rates?

 

[Big Nasty Edison]

Thanks Trump.

 

[DEN]

'People' say alot, and blind squirrels finds nuts occasionally.

The fed raises interest rates, causing a stock crash, and Trump gets the blame for the stock crash.

Brilliantly accurate reporting.

Hey brotha, like I said I dont know squat about the stock market and dont want to pretend I do.

What do you think is to blame?

 

[DEN]

Really tough to say, a fall in GDP in 2 or 3 successive quarters is the definition I believe. Right now it looks like a slowdown and not a negative GDP for the next few quarters. That could drastically change though if these stupid trade wars keep happening. WTI needs to bump up as well $60-$70 USD is sustainable.

So basically if the trade war reaches a resolution in the near future it might just be a blip?

 

[zebby23]

'People' say alot, and blind squirrels finds nuts occasionally.

The fed raises interest rates, causing a stock crash, and Trump gets the blame for the stock crash.

Brilliantly accurate reporting.

In fairness Trump was acting like he was to credit for the market the last 2 years. It has almost nothing to do with the president but someone should tell Trump that

 

[DEN]

That was 9 years of the craziest gains I've ever had, it had to end sometime though.

Glad to hear you're doing well for yourself. Cheers.

 

[GearSolidMetal]

What do you think is to blame?

Logic says to blame a direct cause for a negative effect.

Trump has little to no control over the stock market. So, that rules him out.

What would you say the OP article says is a direct cause?

 

[DEN]

Logic says to blame a direct cause for a negative effect.

Trump has little to no control over the stock market. So, that rules him out.

What would you say the OP article says is a direct cause?

It seems the direct cause is the fed hiking interest rates making it harder to borrow money.
Why the fed is hiking it is over my head. Seems like a shell game to me.
I'm open to hearing people's thoughts so I can be better informed.
I yearn to blame trump but basically everyone says the pres doesnt have much control. Trade wars dont seem to be helping though.