You are viewing:-
you're reading...
1.Market Observations, 8.Was Sticky

18 Oct 2018 (AFR) – Trump’s gamble may end ‘very badly indeed’ – Donald Trump is stomping the brakes and accelerator at the same time

(18 October 2018, AFR, p15, by Jacob Greber)

‘Washington | Already the great stock meltdown of early October 2018 looks to be a thing of the past – so last week! Wall Street is back in its happy mode, with the Dow Jones finishing up 547 points, or 2.2 per cent, on Tuesday afternoon (Wednesday AEDT), paring a good slice of the damage.’ <snipped…>

‘Look no further than this week’s US Treasury report that the federal budget deficit has blown out to $US779 billion ($1.09 trillion) in fiscal 2018, 17 per cent higher than the previous year. This fiscal deterioration has been driven by Trump’s tax cuts, which have pushed the deficit to the equivalent of 3.9 per cent of US gross domestic product. It’s expected to top $US1 trillion in 2019. On present trends, federal debt will balloon to 100 per cent of GDP by the end of the next decade from 78 per cent today. These kinds of numbers are normally associated with the aftermath of calamitous recession or wars; rarely with an economy already in rude health. Yet the most stunning feature of this blowout is that nobody seems to care in Washington. Treasury’s report was greeted by the sound of crickets.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

Advertisements

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Advertisements
%d bloggers like this: