Bizarre statement from the Treasury secretary causes market drop, fears of impending recession
Since August, the stock market has been continually falling, with tech stocks taking by far the biggest hit. In fact, the Nasdaq—which is tech stock-heavy—has fallen 22 perent since August. The drop appears to be fueled in large part by trade uncertainty, driven by the ill-advised Trump trade war. Economists are predicting the U.S. economy could very well be in recession again by 2020. It took the Obama administration eight years to build a strong economy and it’s taken Trump two years to drag us back down. In fact, the Dow Jones had the worst week since 2008 and stocks overall are headed for the worst December since the Great Depression. With trade uncertainty, the Fed raising interest rates, and the government shutdown, there are signs of troubled times ahead.
With that in mind, it’s sort of incredible what the Trump administration did in response. On Sunday, with no prompting whatsoever, U.S. Treasury Secretary Steve Mnuchin took a break from his plush, five-star vacation spot in Mexico (oh, the irony) to release a statement saying that he personally called the six largest banks in America to make sure they were totally cool with plenty of cash on hand. Mnuchin assured everyone the six largest banks had “ample liquidity for lending to consumer, business markets, and all other market operations.” (See the full statement below.)
Why do the Mnuchins always look like Bond villains pic.twitter.com/0Ug51z82GO
Ã¢Â€Â” Ken Klippenstein (@kenklippenstein) December 24, 2018