The bull market is 11 years old on Monday, and it is the longest stretch of non stop gains ever. The sell off over the past 12 trading days means that the US stocks are on the edge of a bear market. Therefore; Tuesday will be a test.
If the market goes below 20%, the bull market will officially be over, and we are entering a bear market. After the Great Recession, the bull market started in March 2009. The S&P 500 has gone straight up since then.
The S&P 500 is up 339% and it has been a slow recovery. It`s similar to the recovery from the Great Depression in June 1932 were the S&P 500 skyrocketed 325%. At that time, it was the deepest recession in modern American history.
President Franklin Roosevelt supported the bull market with massive government spending. Later on, Roosevelt pulled back from the program and the Fed tightened its reserve ratios for banks. The economy didn`t recover as much as it should, and tighter monetary and fiscal policy led to a double-dip recession.
This is why the Fed is important now. So are the Trump administration. The Fed cut the rates 50 points only days ago and they will probably come up with more news about the market even this week.
The Fed offers Repo Market $50 Billion more to ease rate pressure. New York Fed Repo Totals $112,93 Billion and Fed`s move to tap liquidity operations will buy time on more rate cuts.
What they do now is great leadership on the world stage. They can`t stop the virus but they can make liquidity.
To contact the author of this story: Ket Garden at email@example.com
President Trump is very popular in the World`s largest democracy India. Yesterday, he visited India and made a speech at the Motera cricket stadium in Ahmedabad city in Gujarat. More than 100,000 came to see Trump and hear him say that the U.S made a deal with India.
The U.S firm Exxon Mobil and Indian Oil signed a deal to help import more Liquefied Natural Gas. Trump said he made a defence deal with India. Not a trade deal, and the deal was a $3 billion military deal. A defence deal.
PM Modi`s nationalist government made tariffs of up to 120% two years ago. Trump and Modi didn`t sign a trade deal, but Modi said that negotiations would continue.
The Hate Trump Media Mob said Trump will never be a president. The day he was inaugurated, they said he was stupid becuase he wanted to cut taxes. They also said he can`t run the White House like a corporation.
But millions of people voted for Trump and it seems like the majority of the people did the right thing. 61% of the Americans say they are better off today than three years ago (Gallup). Trump made it easier for for ordinary people and corporations by cutting the taxes, and this is why the American economy is booming.
Barak Obama want some credit for it. «Eleven years ago today, near the bottom of the worst recession in generations, I signed the Recovery Act, paving the way for more than a decade of economic growth and the longest streak of job creation in American history,» he wrote in a tweet yesterday.
Former Reagan economist Art Laffer said it is the longest recovery in the U.S history, and it is all because of Trump.
Obama printed money but the recovery was very slow. When Trump entered the White House, things changed very fast. The difference between Obama and Trump is that Obama is a politician while Trump is an economist.
Trump is a businessman and he know how it works. In addition, he have support from economists like Steven Terner Mnuchin and Larry Kudlow. Mnuchin is an American investment banker and civil servant. He is also a former hedge fund manager and investor.
As Secretary of the Treasury, Mnuchin supported the tax reform of 2017 and advocated reducing corporate tax rates. He also supports a partial repeal of Dodd-Frank, citing the complexxity of the legislation.
Kudlow has also been in the game for a very long time. He is an American financial analyst and former TV host. He began his career as a junior financial analyst at the New York Federal Reserve. Later on, he jumped ove to Wall Street.
Kudlow joined the administration of Ronald Reagan as associate director for economics and planning in the Office of Management and Budget.
The U.S has strongest most durable economy in the world, Obama said during his 2016 State of the Union address. The job growth was strong under Obama. At that time, America has put more people to work than Europe, Japan, and all advanced economies combined, so Obama was correct.
I don`t care about left and right. For me they all on the same team. Let`s call it Team America.
The impeachment is over. It was unfair and constitutionally incoherent dangerous. The Hate Trump Media Mob said Abuse of Power about Trump`s behaviour, but that is a lie. It is the House that has abused its power. Not Trump.
The U.S Senate Majority Leader Mitch McConnel said this on the Senate floor regarding the Senate Impeachment Trial yesterday:
«These past weeks, the Senate has grapped with as grave a subject as we ever consider: A request from a majority in the House of Representatives to remove the president.
«The Framers took impeachment extremely seriously. But they harbored no illusions that these trials would always begin for the right reasons. Alexander Hamilton warned that the demon of faction would extend his scepter over the House of Representatives at certain seasons.
«He warned that an intemperate or designing majority in the House might misuse impeachment as a weapon of ordinary politics rather than an emergency tool of last resort.
McConnell said it`s the House that has abused its power. Not Trump.
«They called the Senate, quote; the most fit depositary of this important trust. Tomorrow, we will know whether that trust was well placed.
«The drive to impeach President Trump did not begin with the allegations before us. Here was reporting in April of 2016; Donald Trump isn`t even the Republican nominee yet….. (but) Impeachment is already on the lips of pundits, newspaper editoras, constitutional scholars, and even a few members of Congress.
Did you see that? The impeachement started long before he was elected. Huh…. (editors note).
«Here was the Washington Post headline minutes after President Trump`s inauguration: The campaign to impeach President Trump has begun.
«The articles of impeachment before us were not even the first ones House Democrats introduced. This was go-around number seven. Those previously-alleged High Crimes and Misdemeanors included things like being impolite to the press and to professional athletes.
«This insults the intelligence of the American people to pretend this was a solemn process relutantly begun because of withheld foreign aid. No, Washington Democrats position on this President has been clear for years.
«Their position was obvious when they openly rooted for the Mueller investigation to tear our country apart were disappointed when the facts proved otherwise. It was obvious when they sought to impeach this President over and over.
«Here`s their real position; Washington Democrats think President Donald Trump committed a High Crime or Misdemeanor the moment he defeated Secretary Clinton in the 2016 election. That is the original sin of this presidency: That he won and they lost.
«Ever since, the nation has suffered through a grinding campaign against our norms and institutions from the same people who keep shouting that our norms and institutions need defending.
«A campaign to degrade our democracy and deligitimize our elections from the same people who shout that confidence in our democracy must be paramount.
«We have watched a major American political party adopt the following absurd proposition: We think this president is a bull in a china shop, so we`re going to drive a bulldozer through the china shop to get rid of him.
«This fever led to the most rushed, least fair, and least thorough presidential impeachment inquiry in Amerian history.
« The House inquiry into President Nixon spanned many months. The special prosecutors investigation added many more months. With President Clinton, the independent counsel worked for years.
«Here`s how Chairman Schiff put it back in October. Quote: Any action,,,,, that forces us to litigate, or have to consider litigation, will be considered further evidence of obstruction of justice.
«That is nonsense. Impeachment is not some magical constitutional trump card that melts away the seperations between the branches of government. The Framers did not leave the House a secret constitutional steamroller that everyone somehow overlooked for 230 years.
«When Congress subpoenas executive-branch officials with questions of privilege, the two sides either reach an accommodation or take to the courts.
«That is the way this works.
«The abuse of power charge is just as unpersuasive and dangerous.
«By passing that article, House Democrats have into a temptation that every previous House has resisted. They impeached a president without even alleging a crime known to our laws.
(How in the world is it possible? Editors note).
«I do not subscribe to the legal theory that impeachment requires a violation of a criminal statue. But there are powerful reasons why, for 230 years, every presidential impeachment did allege a criminal violation.
«The Framers explcitly rejected impeachment for maladministration – a general charge under English law that basically encompassed bad management; a sort of general vote of no confidence. Except in the most extreme circumstances, except for acts that overwhelmingly shocked the national conscience, the Framers decided presidents must serve at the pleasure of the electorate and not the pleasure of House majorities.
«As Hamilton wrote: it is one thing to be subordinate to the laws, and another to be dependent on the legislative body.
«So House Democrats sailed into new and dagerous water. The first impeachment unbound by the criminal law. Any House that felt it needed to take this radical step owed the country the most fair and painstaking process; the most rigorous investigation; the most bipartisan effort. Instead, we got the opposite. The exact opposite.
«The House Managers argued that the President could not have been acting in the national interest because he acted inconsistently with their own conception of the national interest, a conception shared by some of the President`s subordinates.
«This does not even approach a case for the first presidential removal in Amercan history.
«Such an act cannot rest alone on the exercise of a constitutional power, combined with concerns about whether the President`s motivations were public or personal, and a disagreement over whether the exercise of the power was in the national interests.
«The Framers gave our nation an ultimate tool for evaluating a President`s character and policy decisions. They`re called elections.
«Frankly, it is hard to believe that House Democrats ever really thought this reckless and precedent-breaking process would yield 67 votes to cross the Rubicon. Was their vision so clouded by partisanship that they really believed this would be anywhere near enough for the first presidential removal in American history?
«Or was success besides the point? Was this all an effort to hijack our institutions for a month-long political rally? Either way, the demon of faction, has been on full display. But now it is time for him to exit the stage.
«We have indeed witnessed an abuse of power: A grave abuse of power by just the kind of House majority the Framers warned us about. So tomorrow, the Senate must do what we were created to do. We have done our duty. We have considered all arguments. We have studied the «mountain of evidence.» And tomorrow, we will vote.
«We must vote to reject the House`s abuse of power. Vote to protect our institutions.
«Vote to reject new precedents that would reduce the Framers design to rubble.
«Vote to keep factional fever from boiling over and scorching our Republic.
«I urge every one of our coleagues to cast the vote that the facts in evidence, the Constitution, and the common good clearly require.
A lot of people are advicing the president what to say at the State of the Union adress on Tuesday. Some conservatives on the right side want him to hammer the democrats for their impeachment embarrassment.
The democrats said Trump was illegitimate. They told the world that he was a racist bigot. They wanted to impeach him because Russia helped him to be elected. It was a hoax, so they started a new narrative; the Ukraine story. But that was also a hoax.
Republican Sen. Lindsay Graham of South Carolina said it would be smart to focus on other issus, encouraged Trump to be positive, and posited that most people are ready to move on from impeachment.
In 1999, President Bill Clinton gave the State of the Union in the same House chamber that had impeached him a month earlier, but he didn`t mention the proceedings in his adress, despite the fact that Clinton would be acquitted by the Senate not long later. Graham said Clinton did a great job at a time were he was a House impeachment manager.
The economy is booming like never before. The unemployment rate is low and wages are rising. We can expect the president to make a positive State of the Union adress on Tuesday. It`s always showtime when Trump is on the stage and so will it be on Tuesday.