Post # 2 today. Why the Disconnect ?
A lot of talk about why the stock market is ignoring what is happening to the country,
To me the answer is real easy. No one believes the core message that Democrats have put forth.
- No one believes that the Democrats are going to change anything other than spend more money. This after we have seen the Republicans run up huge deficits, papering over their failures by using taxpayer money to save votes. A good example; the tariff failure and the billions given to farmers to make up the difference.
- No one believes that in the first 100 days that anything is going to be done about the core Inequality issue.
- No one believes that in the first 100 days that legislation is going to be passed to raise corporate and capital gains taxes.
- No one believes that in the first 100 days legislation is going to be presented to break up monopolies.
- No one believes that in the first 100 days the Treasury Department will curtail support for zombie company bond financing.
- No one believes that Janet Yellen will really fight for financial balance.
- No one believes that stock buybacks will be curtailed until the FED stops buying bonds and starts selling down its bond portfolio.
We can only hope the markets get a big surprise.